Builder confidence in the market for newly built single-family homes increased by one point to 38 in November, according to the latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The report highlights that builder sentiment remains subdued due to ongoing economic uncertainty linked to tariffs, higher construction costs, and market instability exacerbated by the recent government shutdown.
Buddy Hughes, NAHB Chairman and a home builder from Lexington, N.C., stated: “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. More builders are using incentives to get deals closed, including lowering prices, but many potential buyers still remain on the fence.”
Robert Dietz, NAHB Chief Economist, commented: “We continue to see demand-side weakness as a softening labor market and stretched consumer finances are contributing to a difficult sales environment. 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 November HMI survey found that 41% of builders reported cutting prices—an all-time high since the pandemic period—while average price reductions remained at 6%. Additionally, sales incentives were used by 65% of builders during November.
The HMI is based on monthly surveys conducted by NAHB for more than four decades. It assesses builder views on current single-family home sales and their expectations for the next six months as well as traffic from prospective buyers. Scores above 50 indicate that more builders view conditions as good rather than poor.
For specific components of the index in November: current sales conditions rose two points to 41; future sales expectations dropped three points to 51; while prospective buyer traffic gained one point to reach 26.
Regional analysis showed varying results across three-month moving averages: Northeast up two points at 48; Midwest down one point at 41; South up three points at 34; West up two points at 30.
Additional details about HMI tables can be accessed at nahb.org/hmi. More comprehensive data on housing statistics is available through Housing Economics PLUS.
