NAHB: Prospective home buyers slide in Q3
Millennials are most likely to plan on purchasing a home within a year.
Just 12% of adults are considering the purchase of a home within the next 12 months, according to the National Association of Home Builder’s (NAHB) Housing Trends Report for the third quarter of 2019.
This share of prospective home buyers is down slightly from 13% for the same period in 2918. For the majority of these buyers (60%), this will be their first time buying a home, about the same share as a year earlier (61%).
Millennials (age 23 to 38) are the most likely generation to be making plans to purchase a home within a year (20%), followed by Gen X (age 39 to 54) (12%) and Gen Z (age 18 to 22) (11%). In contrast, only 6% of Boomers (age 55 to 73) reported plans to purchase a home.
Geographically, respondents in the South and West are slightly more likely to be planning a home purchase (13% and 12%, respectively) than those in the Northeast and Midwest (both at 11%).
About 66% Gen Z’s planning a home purchase are first-time buyers, a distinction shared by 75% of Millennial buyers. Among Gen X buyers, half are buying a home for the first time; while among Boomers, the share is only 24%. Geographically, a majority of those planning a home purchase in all four regions are first-time buyers, led by the Northeast at 64%.
In terms of the type of home these prospective home buyers are interested in, 41% are looking to buy an existing home and 18% a newly-built home. The remaining 41% would buy either a new or existing home.
The full third quarter 2019 Housing Trends Report can be accessed here. The report is research product created by the NAHB Economics Team.
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