WASHINGTON, September 18 — Builder confidence in the market for newly built single-family homes fell three points to 32 in September, the National Association of Home Builders reported, marking the lowest level of builder sentiment since September 2025. The story begins with a number that has been sliding for months. The NAHB/Wells Fargo Housing Market Index, released Tuesday, Sep 16, 2026, now sits well below the 50 mark that separates builders who see conditions as good from those who see them as poor.
The survey behind it has run for more than 40 years, asking builders each month to rate current single-family sales, sales expectations for the next six months, and traffic of prospective buyers.
What the components show
Every measure of current and future activity weakened except one. The index for current sales conditions dropped four points to 35. The gauge of sales expectations for the next six months fell six points to 37.
Prospective buyer traffic held steady at 23 — the only component not to decline. NAHB Chairman Bill Owens, a home builder and remodeler from Worthington, Ohio, pointed to the forces squeezing the market.
“Buyer traffic has weakened across much of the country, largely because of rising mortgage rates,” he said. “Builders also continue to face higher material costs, rising gas and diesel prices and persistent labor shortages. In some markets, builders report that increased immigration enforcement is discouraging legal workers from reporting to job sites.” NAHB Chief Economist Robert Dietz said the index reflects a broader set of pressures.
“The HMI shows builder confidence at its lowest level since September 2025, as tight lending conditions and elevated land, labor and construction costs persist,” he said. “Notably, 42% of builders rated current lot availability as poor and 38% as fair.”
Price cuts and incentives climb
Builders are responding by cutting prices and offering more incentives. In September, 38% of builders cut prices, up from 35% in August, while the average price cut remained at 6% for the sixth consecutive month. Meanwhile, 66% of builders reported using sales incentives, up from 63% in August and the highest share since 67% in December.
Regional three-month moving averages showed the Midwest dropping one point to 44, the Northeast falling five points to 39, the South falling one point to 31, and the West posting a one-point gain to 28. What to watch next is whether mortgage rates ease and whether those regional numbers stabilize.
For now, the index points to a building industry that is holding back — and waiting.
