Unaffordable Home Prices Are the Biggest Deterrent for Today’s Buyers
The inability to find an affordable home is the most common reason why buyers can’t make a home purchase in the first quarter of 2023. Roughly 71% of prospective homebuyers who were actively engaged in the house hunting process during the first quarter of 2023 spent three or more months searching for a home without success, and 40% cited unaffordable home prices as their biggest roadblock, the National Association of Home Builders' Eye on Housing reports.
The second reason for stalled home purchases is the inability to find a home with desirable features, cited by 35% of buyers, followed by the inability to find a home in a desirable neighborhood (33%) and getting outbid by other buyers (30%).
When asked what they are most likely to do next if still unable to find a home in the next few months, 40% of active buyers searching for 3+ months said they will continue looking for the ‘right’ home in the same location (a share that’s been trending down since reaching 52% a year ago); 40% will expand their search area, 27% will accept a smaller/older home, and 26% will buy a more expensive home.