The National Association of Home Builders reported that 16% of adults are planning a home purchase in the next 12 months.
Among the group of prospective buyers, 42% are looking to buy a newly built home and 30% are searching for an existing home.
A year earlier, in the first quarter of 2020, only 24% of buyers reported a preference for new homes, while 40% were looking for an existing home. These changes provide evidence that a growing number of buyers are looking specifically at new home construction from the onset of their home search.
When broken down by generation, a majority of millennial buyers (56%) would prefer a new home, the most of any generation. In contrast, 44% of baby boomers and 41% of Gen Z buyers are looking for an existing home.
Regionally, in the Northeast and West, a majority of buyers would prefer a new home. In the Midwest and South, on the other hand, a plurality are looking for an existing home.
Additional details from the NAHB’s first quarter 2021 Housing Trends Report can be found here.