More Buyers are Looking for a New Home

Filed in Economics, Trends, Uncategorized by on May 3, 2021 1 Comment

A recent NAHB Housing Trends Report revealed that 16% of adults are planning a home purchase in the next 12 months. Among that group of prospective buyers, 42% are looking to buy a newly built home and 30% 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.

new home vs existing home preference

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.

new home vs existing home generational preference

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.

new home vs existing home regional preference

Rose Quint, NAHB’s assistant vice president for survey research, provides more details in this Eye on Housing blog post.

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  1. Cyd Vacio says:

    Yep, I’ve been in new home sales for 35 years, and we’ve nearly always been “the wallflower at the dance”, with newly-constructed homes being the last resort in homeseekers’ housing choice.s All it takes is a healthy dose of DISMAL RESALE-HOME INVENTORY and all of a sudden, we’re the pretty ones at the dance.

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