Builder Sentiment Remains Weak Amid Affordability Concerns

Builder confidence in newly built single-family homes fell to 35 in the NAHB/Wells Fargo Housing Market Index for June 2026, marking the 14th consecutive month below 50, driven by rising material costs, elevated mortgage rates, and affordability challenges. The survey found that 35% of builders cut prices in June with an average reduction of 6%, while 62% used sales incentives, and regulatory costs were estimated to add more than 26% to the price of an average single-family home.