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U.S. home prices show signs of a steadying market
According to Redfin’s Home Price Index, U.S. home prices increased 0.25% month over month in August 2026 on a seasonally adjusted basis. This shows signs of an easing market, as this is slightly down from 0.26% in July and 0.27% in June. An easing price growth could potentially bring more buyers out from the sidelines.
The biggest increase in U.S. home prices was in St. Louis, where home prices rose 1.1% month over month on a seasonally adjusted basis, followed by Pittsburgh at 1%, San Antonio at 0.9%, San Jose, Calif., at 0.9% and Baltimore at 0.9%. St. Louis’ relatively affordable prices are attracting buyers and propping up prices, while San Francisco’s booming market is likely spilling over into San Jose.
Prices declined year over year in five major metros, four in Texas plus Seattle; Dallas had the biggest drop, followed by Austin, Fort Worth, San Antonio and Seattle. Prices ticked down since Texas has one of the largest buyers’ markets and sellers are likely easing prices as incentives.
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AIA/Deltek Architecture Billings Index reports modest growth in August
The American Institute of Architects (AIA) latest AIA/Deltek Architecture Billings Index posted a score of 47.2, indicating soft inquiries, contracts and project activity across the sector.
This is a slight increase from the July reporting of 46.6. Additionally, AIA reported that employment increased for architectural services by an estimated 700 positions.
Despite these modest gains, persistent inflation and high borrowing costs continue to weigh on the sector.
“Architecture firms are caught between stubborn inflation and higher borrowing costs,” said AIA Chief Economist Richard Branch. “The Federal Reserve’s latest rate increase may help ease inflationary pressures over time, but in the near term it adds another headwind for projects already facing a difficult financing environment.”
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Single-family housing starts exceed estimate
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development released their Monthly New Residential Construction Report for August 2026. Single-family housing starts totaled 918,000 in August, up 7.6% from the revised July figure of 853,000. Privately owned housing starts in August were at a seasonally adjusted annual rate of 1,275,000, down 2.6% from the revised July estimate.
“New home sales continue to highlight a growing divide between the new and existing home markets,” said Cotality Chief Economist Dr. Selma Hepp. “Homebuilders have become increasingly aggressive in using price cuts, mortgage rate buydowns, and other incentives to attract buyers, effectively shifting homes from ‘for sale’ to ‘on sale.’ As a result, new construction is offering a more affordable path to homeownership for many first-time buyers and helping sustain housing market activity despite a prolonged period of elevated mortgage rates.”
Privately-owned housing units authorized by building permits in August were at a seasonally adjusted annual rate of 1,394,000, 2.7% below the revised July rate.
Privately-owned housing completions in August were at a seasonally adjusted annual rate of 1,128,000, 1.9% below the revised July estimate of 1,280,000 and 27.1% below the August 2025 rate of 1,548,000. Single-family housing completions in August were at a rate of 816,000; this is 10.4% below the revised July rate of 911,000.
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HUD and USDA agreement to streamline housing standards
The U.S. Department of Agriculture (USDA) and the U.S. Department of Housing and Urban Development (HUD) signed a Memorandum of Understanding (MOU) to streamline housing standards, including environmental review, environmental impact, environmental regulations and physical inspections. The MOU aims to advance housing development and increase supply.
“The National Association of REALTORS (NAR) applauds HUD and USDA for streamlining environmental reviews and inspections, reducing regulatory barriers and advancing housing development,” said NAR Executive Vice President and Chief Advocacy Officer Shannon McGahn. “This action is an important step in implementing the 21st Century ROAD to Housing Act and building momentum toward reforms that reduce costs and increase housing supply. NAR helped shape the legislation and will continue working with federal agencies and regulators to advance policies that break down barriers to housing and homeownership.”
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Berkshire Hathaway now owns 10% stake in Lennar
A few weeks ago, we reported that Berkshire Hathaway doubled down on its housing market investment. This week, the company further sustained its ownership in Lennar, bringing its total ownership of the homebuilder to 10%.
According to SEC filings, the major conglomerate bought a mix of Class A and Class B shares from Sept. 17- 21.
This happened after Warren Buffett, who grew the company, stepped down as Chairman of the Board but will remain as Chairman Emeritus.
Berkshire Hathaway’s presence in the market continues through its ownership of Taylor Morrison and Clayton Homes, the modern manufactured homebuilder, which it acquired in 2003.
Despite the building industry facing major headwinds in affordability, this move aligns with the company’s history of placing trust in undervalued sectors and companies.
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Private residential construction spending rises in August
According to the latest construction spending data from the U.S. Census Bureau, private residential construction spending came in at a seasonally adjusted annual rate of $882.3 billion in August 2026. This is up 1.1% from July but down 4.8% from the previous year.
All residential sectors saw an increase, but remodeling posted the largest monthly gain at 2.5%. Spending on single-family and multifamily construction increased by 0.2% in August, but decreased 3.5% and 0.6% from 2025, respectively.
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Economic growth increases in 44 states in Q2
According to the latest estimates from the U.S. Bureau of Economic Analysis, Real gross domestic product (GDP) increased in 44 states and the District of Columbia in the second quarter of 2026. GDP growth ranged from a 4.0% annualized increase in New York to a 2.3% decline in West Virginia, pointing to continued regional differences in economic performance. Most states recorded positive economic growth despite ongoing pressures from elevated prices and interest rates.
For the housing market, differences in state-level economic activity have important implications for housing demand: Stronger local economies generally support household income and employment, while weaker economic conditions can weigh on housing activity.
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The trends defining living room design
Living room design is shifting away from the perfect polished look and towards a warmer, lived-in style. Jeannine Bogart, design principal and founder of Epic Interiors, said that built-in storage, warm and neutral layers, softer layouts and darker accents will take center stage in 2027’s living rooms.
According to Bogart, living rooms are working harder than ever now, prompting the need for increased storage.
“They hold books, media, work items, games and family clutter, so storage needs to be better integrated,” said Bogart. “Built-ins will continue to be popular because they make a room feel more intentional while hiding the things people actually live with.”
Bogart said she is also expecting the color palettes to shift away from cold and sterile whites and grays and towards richer, warmer tones, such as taupe or soft brown. Additionally, incorporating a darker color palette will serve as a contrast that adds richness and depth to a space.
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Unusual Angles Driving Innovative Results
When the landscape offers challenges, architects deliver answers
“Some architecture relies on expensive materials, unusually shaped volumes or giant walls of glass,” said Michael Gale, AIA, LEED AP. “This home achieves beauty and comfortable living spaces through simple architectural expression and enjoyable experiences as you meander between those spaces.”
Sprawling over nearly four and a half acres, the View Angle House masterfully directs site design for intuitive living. The View Angle House challenges the obvious decision to build at the top of a hill.
Expressionist Architecture
In collaboration with civil engineer Humann Company and Environmental Foresight on landscape design, initial review of the landscape indicated that the most favorable views were at a 60-degree downhill angle.
Gale has a knack for this sort of design challenge. His background supports this ambition, having worked on internationally renowned projects such as the Guggenheim Museum in Bilbao, Spain.
His parti placed the main house functions in a long bar stretching across the site while angling the great room and primary suite at 60 and 30 degrees, respectively. With the bar’s retaining wall against the hillside, Gale shifted the garage further into the hill, creating an entry court. To the west of the home, a central circulation corridor with frosted glass and steel canopy separates the home gym from the main structure.
These decisions allowed the great room and primary suite to connect with the main structure while creating intimate sightlines of the landscape and outdoor living areas.
Element Execution
The 5,523-square-foot home takes direction from the land surrounding it, with vertical cedar siding in the portion inspired by hillside grasses. The two angled rooms are clad in stone and finished with off-center dynamic roofs to provide shade to the outdoor spaces.
Inside the great room, the 17-foot vaulted walnut-planked ceiling is juxtaposed by the exposed metal trusses, a balance of agrarian yet refined material choices. Gale noted that this element was both the most fun and fulfilling part to design.
“Although the house engages with the views outside at every moment, the steel trusses in the great room are about celebrating this particular moment of the interiors with a completely one-off structural solution,” said Gale.
Diamond Construction elegantly executed these elements. The great room also connects to the south infinity pool, outdoor kitchen and patio through dual multipanel sliding glass door systems; while openings to the north provide an exclusive view of the courtyard.
Economy of Design
These two key rooms provide a unique atmosphere of the home, but the rest of the project’s design is not overlooked. The home offers two kitchens, one indoor with an oversized island built for entertaining and an outdoor one for cooking poolside. Additionally, it is fitted with a climate-controlled wine room, dedicated office space and two additional bedrooms.
Gale’s reflection on the project is grounded in its economy of design, the art of maximizing spatial elements and functionality while delivering on value. For the View Angle House, it taught a larger lesson: that the simplest option is often not the most obvious. Expression is
The project’s ethos gained recognition at the 2026 Gold Nugget Awards, claiming the Grand Award for Best One-of-a-Kind Home.
“It is truly wonderful that the PCBC Golden Nugget Awards program recognizes the extraordinary efforts that go into the highest quality developer-driven homes,” said Gale. “When I work hard and the consultants and the builder all work hard and collaborate productively to make an amazing home, I’m so incredibly grateful that PCBC can see that and acknowledges that with an award.”
By Sofia Feeney. She is the Editor at Builder and Developer and can be reached at sofia@builder.media.
This story is also featured in B&D September, read the print version.
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The new trends defining fall’s luxury interiors
Restrained color palettes have defined luxury interiors for years. This fall, however, interior design is shifting towards warmer and darker tones.
Pale white oak and bleached finishes are being replaced by walnut, espresso oak and other rich brown woods. It is no secret why; dark wood introduces depth into a space, especially against ivory upholstery, travertine, alabaster or warm white walls. Rather than feel heavy, it feels intentional.
The traditional fall decor is easily recognizable with oranges, rusts and browns. However, this year is becoming more nuanced, moving toward richer, earthy tones. Cinnamon, caramel, tobacco and ochre bring warmth into a home. Oxblood, merlot and burgundy introduce a deeper, more dramatic note and could serve as a rich contrast. Mineral greens, earthy clays and muted purples round out the palette, creating interiors that feel distinctly autumnal without relying on the traditional autumn palette.
One of the biggest design shifts in luxury interiors is in materials. Velvet, silk, mohair, fine wool, carved wood, natural stone, antiqued metal and textured plaster are all gaining momentum as interiors embrace a more tactile approach to luxury.
Reflective surfaces are also being used strategically to introduce light, movement and dimension into these emerging deeper interiors.
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The Architecture of Quiet
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Single-family housing starts exceed estimate
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development released their Monthly New Residential Construction Report for August 2026. Single-family housing starts totaled 918,000 in August, up 7.6% from the revised July figure of 853,000. Privately owned housing starts in August were at a seasonally adjusted annual rate of 1,275,000, down 2.6% from the revised July estimate.
“New home sales continue to highlight a growing divide between the new and existing home markets,” said Cotality Chief Economist Dr. Selma Hepp. “Homebuilders have become increasingly aggressive in using price cuts, mortgage rate buydowns, and other incentives to attract buyers, effectively shifting homes from ‘for sale’ to ‘on sale.’ As a result, new construction is offering a more affordable path to homeownership for many first-time buyers and helping sustain housing market activity despite a prolonged period of elevated mortgage rates.”
Privately-owned housing units authorized by building permits in August were at a seasonally adjusted annual rate of 1,394,000, 2.7% below the revised July rate.
Privately-owned housing completions in August were at a seasonally adjusted annual rate of 1,128,000, 1.9% below the revised July estimate of 1,280,000 and 27.1% below the August 2025 rate of 1,548,000. Single-family housing completions in August were at a rate of 816,000; this is 10.4% below the revised July rate of 911,000.
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Unusual Angles Driving Innovative Results
When the landscape offers challenges, architects deliver answers
“Some architecture relies on expensive materials, unusually shaped volumes or giant walls of glass,” said Michael Gale, AIA, LEED AP. “This home achieves beauty and comfortable living spaces through simple architectural expression and enjoyable experiences as you meander between those spaces.”
Sprawling over nearly four and a half acres, the View Angle House masterfully directs site design for intuitive living. The View Angle House challenges the obvious decision to build at the top of a hill.
Expressionist Architecture
In collaboration with civil engineer Humann Company and Environmental Foresight on landscape design, initial review of the landscape indicated that the most favorable views were at a 60-degree downhill angle.
Gale has a knack for this sort of design challenge. His background supports this ambition, having worked on internationally renowned projects such as the Guggenheim Museum in Bilbao, Spain.
His parti placed the main house functions in a long bar stretching across the site while angling the great room and primary suite at 60 and 30 degrees, respectively. With the bar’s retaining wall against the hillside, Gale shifted the garage further into the hill, creating an entry court. To the west of the home, a central circulation corridor with frosted glass and steel canopy separates the home gym from the main structure.
These decisions allowed the great room and primary suite to connect with the main structure while creating intimate sightlines of the landscape and outdoor living areas.
Element Execution
The 5,523-square-foot home takes direction from the land surrounding it, with vertical cedar siding in the portion inspired by hillside grasses. The two angled rooms are clad in stone and finished with off-center dynamic roofs to provide shade to the outdoor spaces.
Inside the great room, the 17-foot vaulted walnut-planked ceiling is juxtaposed by the exposed metal trusses, a balance of agrarian yet refined material choices. Gale noted that this element was both the most fun and fulfilling part to design.
“Although the house engages with the views outside at every moment, the steel trusses in the great room are about celebrating this particular moment of the interiors with a completely one-off structural solution,” said Gale.
Diamond Construction elegantly executed these elements. The great room also connects to the south infinity pool, outdoor kitchen and patio through dual multipanel sliding glass door systems; while openings to the north provide an exclusive view of the courtyard.
Economy of Design
These two key rooms provide a unique atmosphere of the home, but the rest of the project’s design is not overlooked. The home offers two kitchens, one indoor with an oversized island built for entertaining and an outdoor one for cooking poolside. Additionally, it is fitted with a climate-controlled wine room, dedicated office space and two additional bedrooms.
Gale’s reflection on the project is grounded in its economy of design, the art of maximizing spatial elements and functionality while delivering on value. For the View Angle House, it taught a larger lesson: that the simplest option is often not the most obvious. Expression is
The project’s ethos gained recognition at the 2026 Gold Nugget Awards, claiming the Grand Award for Best One-of-a-Kind Home.
“It is truly wonderful that the PCBC Golden Nugget Awards program recognizes the extraordinary efforts that go into the highest quality developer-driven homes,” said Gale. “When I work hard and the consultants and the builder all work hard and collaborate productively to make an amazing home, I’m so incredibly grateful that PCBC can see that and acknowledges that with an award.”
By Sofia Feeney. She is the Editor at Builder and Developer and can be reached at sofia@builder.media.
This story is also featured in B&D September, read the print version.
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What metro report cards reveal about homebuilding and affordability
While REALTOR explored the housing industry’s geographic variation at a state level earlier this year, a new analysis from the company explored the 100 largest metros in the United States. Ten metro areas received a grade in the “A” range, while each scored greater than 50 on both the affordability and homebuilding components: Des Moines-West Des Moines in Iowa, Raleigh-Cary in North Carolina, Columbia, South Carolina, Houston, Indianapolis, Austin-Round Rock-San Marcos in Texas, Jacksonville, Fla., Oklahoma City, Palm Bay-Melbourne in Florida and Columbus, Ohio.
REALTOR’S metro report card revealed a similar pattern to the state one. The South and Midwest are home to the strongest performers, while the West and Northeast received a lower grade. Lower housing costs relative to incomes and higher levels of new construction activity are more common in the Midwest and South, where home prices are lower, job markets are robust, land is more affordable and available. Local policies around zoning and permitting are also more permissive.
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Bay Area estate is August’s highest home sale
An estate in Hillsborough, Calif., sold for $70 million and was the highest U.S. home sale in August, followed by a $51.5 million waterfront villa in Miami Beach, Fla. California is home to six of August’s 10 priciest sales, with four in the Bay Area and two in Orange County.
Three of the most expensive homes sold were in Florida, with each selling at $30 million or more. A beach-compound in Hawaii sold for $38.2 million, earning it fifth place in August’s top 10 most expensive home sales.
San Francisco’s luxury housing market has been performing well throughout 2026, as AI wealth continues to drive the housing market in the Bay Area.
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Mortgage rates average 6.76%
The 30-year fixed-rate mortgage (FRM) averaged 6.76%, according to Freddie Mac’s Primary Mortgage Market Survey (PMMS). Freddie Mac released the most recent PMMS results on Sept. 10, 2026.
The current FRM is up from the previous week’s average of 6.71%. A year ago at this time, the 30-year FRM averaged 6.35%.
The 15-year FRM averaged 6.09%, up from the week before when it averaged 6.04%. A year ago at this time, the 15-year FRM averaged 5.50%.
“The 30-year fixed-rate mortgage averaged 6.76% this week,” said Sam Khater, Freddie Mac’s Chief Economist. “Aspiring buyers should remember shopping around for the best mortgage rate and getting multiple quotes can potentially save them thousands.”
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Mortgage applications decline in August
Mortgage application activity continued to decline in August, as shown in the Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume. The MBA declined 3.2% month-over-month in August on a seasonally adjusted basis, marking the sixth consecutive monthly decline. Compared to a year ago, total mortgage applications declined 9.1%.
Applications for adjustable-rate mortgages (ARMs) and fixed-rate mortgages (FRMs) decreased 0.6% and 3.4% month-over-month, respectively. Compared with a year earlier, ARM application volume fell 18.2%, while FRM applications declined 8.2%.
Average loan sizes also declined across all categories last month, with the overall loan size decreasing 2.3% to $375,300.
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A tale of two cities and their housing markets
According to a new analysis from Redfin, San Francisco and Seattle are two of the nation’s leading technology hubs. However, the cities are currently at opposite ends of the housing market. San Francisco’s housing market continues to boom, while Seattle’s is beginning to cool.
San Francisco’s median home-sale price jumped 6% year over year in July 2026 to $1.6 million, making it the priciest metro area in the United States. Meanwhile, Seattle’s median sale price declined 4% to $809,000, approximately half the price of San Francisco’s typical home. Seattle’s home price decline was the second-biggest among the 50 most populous U.S. metros.
The two cities tell a very different story in their home sales. In San Francisco, home sales rose 9% from 2025, the second-biggest uptick in the country. In Seattle, home sales fell 9%, the fifth-biggest decline in the nation.
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Trumark Homes expands presence in Washington
Trumark Homes announced its first land acquisition in Poulsbo, Washington, for Sandstone Ridge, a new 87-home community.
This comes after the company acquired Washington-based homebuilder JK Monarch in March.
Trumark Homes also announced its plans to transition ten active communities from JK Monarch’s name under the Trumark Homes brand. This Washington Division joined the existing teams in Northern, Central and Southern California and Colorado.
“The vision since day one was for Trumark Homes to be a Top 5 homebuilder in the Pacific Northwest, and the announcement of Sandstone Ridge is an important step towards that goal,” said Corey Watson, Washington Division President at Trumark Homes. “With enhanced capital and operational resources behind us, we can scale up quickly and pursue growth opportunities. We are well-positioned for an active Q4 2026 and beyond.”
Project development of the new community is in motion, with home sales expected in spring 2027.
Homes in the Sandstone community plan to range from 2,542 square feet to 3,087 square feet, with up to five bedrooms, three-and-a-half bathrooms and two-car garages.
“The greater Seattle market has been a target for expansion since we entered the market in Q1, and with the experience of this team and the investment of financial and operational resources, we are beginning to execute on our strategic land plan,” said Steve Kalmbach, Chief Operating Officer at Trumark Homes. “We are actively engaged in conversations with landowners across the region and see a clear runway for sustained growth.”
Photos courtesy of Trumark Homes
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Select markets see stronger housing growth
According to the September 2026 U.S. Home Price Insights report from Cotality, national home price growth remained modest, rising 1.4% year over year. Mortgage rates continue to impact the housing market, as July experienced a cooldown.
However, as Cotality’s Chief Economist Dr. Selma Hepp points out, beneath the headline numbers, momentum is shifting meaningfully. Select markets experiencing sharper price slowdowns have seen stronger growth in active inventory.
“As we move through the remainder of the year, local labor market dynamics and affordability constraints will continue to shape housing market performance as much as broader macroeconomic shifts, especially the direction of mortgage rates,” said Hepp.
Hepp said that several high-cost coastal markets, which previously posted strong yearly gains, are now showing near-term weakness. San Francisco was up 7.0% year over year, but prices fell 1.4% month over month.
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Mortgage rates reflect buyers adapting to market conditions
Freddie Mac released the results of its Primary Mortgage Market Survey on Sept. 3, 2026, revealing that the 30-year fixed-rate mortgage (FRM) averaged 6.71%. The FRM remains stable, reflecting homebuyers’ adaptation to current market conditions.
“The 30-year fixed-rate mortgage averaged 6.71% this week,” said Sam Khater, Freddie Mac’s Chief Economist. “Purchase demand has remained relatively stable, indicating steady interest from buyers adapting to evolving market conditions.”
The 30-year FRM is up from the week before when it averaged 6.66%. A year ago at this time, the 30-year FRM averaged 6.50%.
The 15-year FRM averaged 6.04%, up from 5.98% the previous week. A year ago at this time, the 15-year FRM averaged 5.60%.
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