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Prospective Homebuyers Shying Away From the Housing Market

Just 12% of adults are considering buying a home over the next 12 months, according to a poll by the National Association of Home Builders (NAHB).

The latest figures represent a 14% year-over-year decline in prospective homebuyers, which is the third-consecutive annual drop for the metric. The 12% of prospective homebuyers is half of the 24% of potential homeowners in Q4 2017.

Additionally, 59% of prospective buyers in the poll showed they have never owned a home before, which is down from last year’s 63%. 

Despite affordability issues across the nation, it is the millennial generation that are most likely to buy a home. Of the generations, 24% of millennials plan to purchase a home in the next year. Generation X followed at 13%, 7% of baby boomers plan to buy a home, and just 3% of seniors are expected to make a purchase. 

However, 77% of millennials will be buying their first home, which is more than Gen X and baby boomers combined. 

Twelve percent of respondents in both the southern and western regions plan to purchase a house, compared to 11% in the midwest, and 10% in the northeast. 

The NAHB also reported that volume of single-family permits issued has fallen 6.1% from June 2018. 

Single-family permits declined in all four regions of the country: Midwest (-9.8%), northeast (-35), south (-3.7%), and the west (-10.2%). 

The states of Idaho, Alabama, Florida, Minnesota, West Virginia, New Jersey, Connecticut, and the District of Columbia, reported increases in single-family permits. 

Photo courtesy of the NAHB

In a recent report, the New York Federal Reserve Bank called housing starts and permits “anemic.” 

According to the report, total housing starts fell 1% in June to 1.25 million units, which follows a 0.4% decline in June. Compared to June 2018, total housing starts were up 6.2%. 

Existing home sales fell 1.5% in June to 4.69 million units, and are 1.7% below 2018’s figures. New home sales rose 7% with a year-over-year increase of 4.5%. 

The New York Fed called home sales, “lackluster.” 

About Author: Mike Albanese

A graduate of the University of Alabama, Mike Albanese has worked for news publications since 2011 in Texas and Colorado. He has built a portfolio of more than 1,000 articles, covering city government, police and crime, business, sports, and is experienced in crafting engaging features and enterprise pieces. He spent time as the sports editor for the "Pilot Point Post-Signal," and has covered the DFW Metroplex for several years. He has also assisted with sports coverage and editing duties with the "Dallas Morning News" and "Denton Record-Chronicle" over the past several years.

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