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Housing market could stabilize within 5 years
According to Redfin, housing costs could stabilize within the next five years if mortgage rates fall to 6% and home price growth remains steady. On the other end, the housing economy could stabilize at a slightly longer rate, six years, if mortgage rates remain the same, at about 7.5%, and home price growth flattens.
“Many house hunters feel stuck between two bad options: Stretch themselves to buy at today’s rates or wait for lower rates only to see prices climb further out of reach,” said Redfin Senior Economist Asad Khan. “But prospective buyers shouldn’t get hung up on timing the market. These hypothetical scenarios should give would-be buyers and sellers some hope that the market can normalize with only modest changes in rates or prices.”
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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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Midwest and Northeast housing markets hold strong
According to Cotality’s October 2026 U.S. home price insights, national single-family home price growth reaccelerated modestly in August, rising 1.8% year-over-year compared to 1.6% in July. This marks the fifth consecutive month of reacceleration in home price growth. The housing market continues to soften, as potential homebuyers pull back in September’s pending home sales.
According to Cotality’s Chief Economist, Dr. Selma Hepp, the core trend shaping the market is the shift away from the once-booming Sunbelt and West Coast cities toward more affordable, inventory-constrained regions in the Midwest and Northeast.
“The national housing market shows a clear split between short-term sensitivity to interest rates and long-term supply shortages,” said Hepp. “High mortgage rates continue to suppress transaction volumes, but severe inventory constraints in the Midwest and Northeast are insulating home prices from broader declines and fueling localized appreciation.”
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Mortgage rates average 7.28%
According to Freddie Mac’s Primary Mortgage Market Survey (PMMS), the 30-year fixed-rate mortgage (FRM) averaged 7.28% as of Oct. 1, 2026.
“With mortgage rates on their current trajectory, the housing market continues to be supported by favorable economic conditions,” said Sam Khater, Freddie Mac’s Chief Economist.
The current 30-year FRM averaged 7.28%, up from 7.03% the previous week. A year ago at this time, the 30-year FRM averaged 6.34%. The 15-year FRM averaged 6.60%, up from 6.42% the previous week. A year ago at this time, the 15-year FRM averaged 5.55%.
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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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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
Designing Inner Peace for calm on a difficult hillside site The hills of Tustin do not compromise. They rise in dry, sun-baked…
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Market share of 5,000-square-feet homes inches higher
The market share of homes 5,000 square feet or more accounted for 2.9% of all new home starts in 2025. According to annual data from the Census Bureau’s Survey of Construction (SOC), both the number and market share of homes with 5,000 square feet or more increased, from 24,000 homes in 2024 to 27,000 homes in 2025.
In 2015, the 5,000-square-foot share reached a record high of 3.9%. Since then, it has fluctuated between 2.3% and 3.1%.
Among homes of 5,000 square feet or more built in 2025, 86% have a porch, 73% have a finished basement, 73% have four or more bathrooms, 68% have a patio, 66% have a three-or-more-car garage, 57% have five or more bedrooms and 51% belong to a community association.
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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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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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A More Balanced Market is Here
The housing market finally feels more normal. Buyers have more choices, bidding wars have become less common and builders are once again…
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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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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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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.
-

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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Redefining the Single-Story Home Design
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