Market Concerns When asked to identify their biggest concerns with respect to the housing market over the next 12 months, the top concerns among prospective new home buyers was economic uncertainty related to COVID-19 (38%), followed by rising home prices (34%). The proportion worried about rising home prices fell from approximately half in 2016 (54%) to a third in 2020 (34%), with the shift to COVID-19 related concerns likely contributing in part to this decline. Uncertainty in the housing market continued to be a concern for 26% of prospective new home buyers. Other top concerns in 2020 included: shortage of the right types of homes for sale (21%), rising interest rates (20%), a general shortage of homes for sale (20%), the availability of mortgages (19%), the ability to raise enough for a down payment (19%), and the cost and availability of property insurance (19%). In 2020, rising interest rates, a general shortage of homes for sale and the ability to raise enough for a down payment were all less concerning than in 2018.
Figure 54: Housing Market Concerns for Prospective New Home Buyers, 2016-2020
38%
Economic uncertainty specifically related to COVID- 19*
N/A N/A
34%
Rising home prices
46%
54%
26%
Uncertainty in the housing market
30%
31%
21%
Shortage of the right type of homes for sale
27% 27%
20%
Rising interest rates
49%
38%
20%
Shortage of homes for sale
25%
19%
19% 19%
Availability of mortgages
15%
19%
Ability to raise enough money for a down payment
27%
37%
19%
Cost and availability of property insurance*
N/A N/A
14% 13%
Falling home prices
7%
1%
Other
3%
2020 (n=500) 2018 (n=502) 2016 (n=500)
2%
2%
Don't know
1%
2%
* New answer option added for 2020
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