Americans are increasingly postponing their homeownership plans as a result of rising home prices and a major supply deficit, according to NAHBNow. The share of U.S. adults planning to buy a home within 12 months has declined for the second consecutive quarter, falling from 17% in the second quarter of 2021 to 16% in the third quarter and 15% in the fourth. The share of prospective first-time buyers also dropped from 65% in the third quarter of 2021 to 63% in the fourth quarter, the first downturn since mid-2020.
The downward trend provides evidence that higher home prices and low housing availability (relative to demand) are leading some Americans to postpone their homeownership plans.
Geographically, the share of adults planning to buy a home was lower in the fourth quarter in every region except the Midwest, which remained flat at 13%. Generationally, buying plans decreased significantly among Gen Xers — from 18% to 12%.
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