US Homebuilder Sentiment Unexpectedly Falls

The NAHB/Wells Fargo Housing Market Index in the US edged up to 38 in March 2026 from 37 in each of the previous two months, compared to forecasts of 37. Current sales conditions increased one point to 42. Sales expectations in the next six months gained two points to 49 and traffic of prospective buyers posted a three-point increase to 25. Also, 37% of builders cut prices in March, up slightly from 36% in February. The average price reduction remained stable at 6%. The use of sales incentives was 64% in March, down one percentage point from February, and marking the 12th consecutive month this share has exceeded 60%. "Many buyers remain on the fence waiting for lower interest rates and due to economic uncertainty. Builders are facing elevated land, labor and construction costs and nearly two-thirds continue to offer sales incentives in a bid to firm up the market", said NAHB Chairman Bill Owens.

The NAHB/Wells Fargo Housing Market Index eased to 36 in February of 2026 from 37 in the previous month, contrasting slightly with market expectations that it would improve to 38. It was the softest reading in five months, reflecting continued challenges in the US housing market. Builder sentiment deteriorated across most components of the index, with sales expectations in the next six months dropping by three points to 46, while the traffic of positive buyers dropped two points to 22. In turn, current sales conditions remained unchanged 41. Th survey reported that 36% of builders cut prices in the period, 4 percentage points below the ratio in January.

The NAHB/Wells Fargo Housing Market Index fell to 37.0 in January 2026, down from 39.0 in December and below market expectations of 40.0. This marked the weakest reading in three months, signaling continued challenges in the US housing market. Builder sentiment deteriorated across all components of the index. Current sales conditions edged down by one point to 41, while sales expectations for the next six months declined three points to 49. Traffic of prospective buyers also weakened, falling three points to 23. The survey further showed that 40% of builders reported cutting prices in January, unchanged from December and marking the third consecutive month in which the share remained at 40% or higher, the highest level since May 2020. The average price reduction increased to 6%, up from 5% in December. Meanwhile, the use of sales incentives rose to 65%, extending a streak of 10 consecutive months above the 60% threshold.