Over the past year, the buyer’s market has been extremely competitive in many markets across the US, due in part to low inventory. With a limited number of properties being listed for sale, it makes sense that more buyers are turning toward new construction.
Take a look at the results from recent surveys from the National Association of Home Builders in regards to new construction and first time home buyers:
First Time Homebuyers considering New Construction
The NAHB/Wells Fargo Housing Market Index (HMI) is a monthly survey of the National Association of Home Builder members, designed to rate the market conditions for the sale of new homes and the traffic of prospective buyers of new homes.
The February 2021 survey showed that builders reported an overall average of 43% of new construction sold to first-time home buyers. Sixty-six percent of builders said that more than 20% of their homes were sold to first-time buyers.
An Upward Trend
The number of first-time buyers who purchase new construction has steadily increased over the past five years. In 2016, an average of 19% of sales of new homes went to first-time home buyers. The number grew to 32% in October 2018 and jumped to 43% in February 2021. This shows that every year, more first-time buyers are considering new construction.