According to the National Association of Home Builders’ Housing Trends Report for the first quarter of 2021, 35% of buyers surveyed perceived an improvement in housing affordability. These respondents claimed that, when checking homes in their market, they would be able to afford half or more of the homes for sale.
Compared to last year, the percentage of buyers who claimed this rose 12% from 23% to 35%. One of the leading factors contributing to this perception could be the current relatively low mortgage rates, although they have been rising.
According to an article by Rose Quint for Eye on Housing, “Millennials report the most improvement in housing affordability perceptions in the last year. Between the first quarters of 2020 and 2021, the share of buyers of this generation who can afford half or more of the homes available doubled (22% to 44%), while changing little among the other generations.”
When broken down by region, the Northeast reported the most increase in buyers who can afford half or more of the homes, doubling from 19% to 46%. The West also reported a significant increase, rising from 20% to 37%.