FAQs

What is the NAHB/Wells Fargo Housing Market Index survey?

The NAHB/Wells Fargo Housing Market Index survey is a survey conducted by the National Association of Home Builders (NAHB) and Wells Fargo to gauge the sentiment of builders regarding the current housing market conditions. It provides valuable insights into trends in the housing market, including the share of sales made to first-time home buyers.

What has been the trend in the share of new home sales to first-time buyers?

Between 2016 and 2021, the share of new home sales to first-time buyers increased from 19% to 43%. However, since 2021, this growth has stagnated, with the share decreasing to 40% in 2024.

Is there a correlation between builder size and the share of sales to first-time buyers?

Yes, there is a direct correlation between builder size and the share of sales to first-time buyers. Larger builders, with 100 or more annual starts, have a higher share of sales going to first-time buyers compared to smaller builders with 1 to 5 annual starts.

Conclusion

The latest data from the NAHB/Wells Fargo Housing Market Index survey shows a significant increase in the share of new home sales going to first-time buyers between 2016 and 2021. However, this trend has since plateaued, with the share dropping to 40% in 2024. The analysis also reveals a direct correlation between builder size and the proportion of sales made to first-time buyers, with larger builders having a higher share. This information is crucial for understanding the dynamics of the housing market and the behavior of first-time home buyers.