Builders’ Top Challenges in 2026
Challenges that emerged in 2025 will continue to arise for builders in 2026. The most significant challenge builders faced in 2025 was high interest rates, while 65% expect interest rates to remain a problem in 2026, according to the latest NAHB/Wells Fargo Housing Market Index survey.
Some 2025 challenges rolling over into 2026 include buyers expecting prices and interest rates to decline, concern about employment and economic situation, both the cost and availability of developed lots, as well as negative media reports making buyers cautious. In addition, builders also reported facing serious problems in 2025 with the cost and availability of labor, as well as local state environmental regulations and policies.
Graph from NAHB
