Despite the various challenges facing the housing market, homeownership continues to rise with 17% of American adults considering purchasing a home within a year, according to the National Association of Home Builder’s Housing Trends Report for the second quarter of 2021.
According to an article by Rose Quint for the NAHB Eye on Housing blog, “after hitting a series low of 10% in the first quarter of 2020”, the seasonally-adjusted share has now increased consecutively for five quarters.
In addition, 64% of those prospective buyers are first-time buyers, which is “the highest share in the history of this series” after three consecutive quarterly share increases.
The region with the largest share of adults who are planning to purchase a home within the year is the Northeast with 20%, a 16% increase from the 8% reported in the first quarter of 2020. All other regions also experienced increases in homeownership desire.
This spells great news for home builders who are poised to profit off this increased desire for homeownership; however, if the current challenges in the industry aren’t addressed (sparse available lots, heighted building material costs, etc.), then builders will continue to see challenges that prevent or delay home builds further affecting the possibility of homeownership for potential buyers.