Builder sentiment plateaus in November
In the midst of government uncertainty and tariff fueled rising construction costs, builder confidence remains at a standstill in November. The National Association of Homebuilders (NAHB) released their November NAHB/Wells Fargo Housing Market Index (HMI). The 40-year old monthly survey shows that single-family residential builder confidence rose one point to 38 this month.
“We continue to see demand-side weakness as a softening labor market and stretched consumer finances are contributing to a difficult sales environment,” said NAHB Chief Economist Robert Dietz. “After a decline for single-family housing starts in 2025, NAHB is forecasting a slight gain in 2026 as builders continue to report future sales conditions in marginally positive territory.”
The HMI survey also revealed that many builders are cutting costs or offering increased incentives to draw buyers to the table. The report indicated that a record high of 41% of builders are cutting costs as much as 6%.
“While lower mortgage rates are a positive development for affordability conditions, many buyers remain hesitant because of the recent record-long government shutdown and concerns over job security and inflation,” said NAHB Chairman Buddy Hughes. “More builders are using incentives to get deals closed, including lowering prices, but many potential buyers still remain on the fence.”
Looking at the HMI regionally and over the fall season. The Northeast is the strongest market of builder confidence rising two points to 48. While the Midwest trails behind and falling a point from previous months to 41. The South increased three points to 34. The West while gaining two points, it still remains the lowest at 30.
