Builder sentiment rose one point to 35 in August; anything below 50 is considered negative for the National Association of Home Builders’ monthly survey, according to NAHB. It reached a record high of 90 in November 2020.
Regarding the three components of the homebuilder index, current sales conditions rose two points to 39; sales expectations held steady at 43; and buyer traffic was unchanged at 23.
Thirty-five percent of builders reported cutting prices in August compared with 37% in July; 35% in June and 32% in May. The average price discount was 6%, which is unchanged from July. Sixty-three percent of builders were using sales incentives other than price cuts to improve sales in August, which is unchanged from July and marks the 17th consecutive month the use of sales incentives has exceeded 60%.
“While builder sentiment edged higher in August, builders continue to contend with high construction costs and broader economic uncertainty,” said NAHB Chairman Bill Owens. “Rising gas and diesel prices are pushing up material costs, and spec home building remains weak as many prospective buyers stay on the sidelines. However, the Midwest remains a bright spot for the home building industry, with new home sales up in that region more than 2% so far in 2026.”
