June Builder Survey Shows Encouraging Signs Despite Ongoing Market Challenges
July 21, 2026
After several months of softer market conditions, June brought welcome signs of improvement. The latest HomeSphere/BTIG State of the Industry Survey found that builders experienced stronger sales, increased buyer traffic, and more stable pricing, providing a positive data point in an otherwise challenging 2026 housing market. While elevated mortgage rates continue to impact affordability, builder sentiment became more balanced in June, with many respondents noting improving sales activity and less reliance on incentives.
Sales improved for the second consecutive month, with 35% of builders reporting higher year-over-year sales in June, up from 28% in May. At the same time, 27% of builders reported lower year-over-year sales, unchanged from the previous month. Buyer traffic also saw a notable rebound. Thirty-eight percent of builders reported higher year-over-year traffic, nearly doubling May's 20% and approaching February's recent high of 43%. The increase suggests more prospective buyers are returning to the market after a slower spring.
Builder expectations painted a more nuanced picture. While 29% of respondents said sales exceeded expectations, nearly unchanged from May, the percentage reporting sales below expectations improved to 31%, down from 37%. Traffic relative to expectations softened slightly. Twenty-seven percent of builders reported better-than-expected traffic, unchanged from May, while 33% said traffic fell short of expectations, compared with 24% the previous month.
Builders demonstrated greater confidence in pricing during June. Nineteen percent increased base prices, up slightly from 17% in May, while only 15% lowered prices, a significant improvement from 28% in the prior month. The decline in price reductions suggests many builders felt less pressure to discount homes to attract buyers.
The use of incentives remained relatively consistent throughout June. More than half of builders (54%) left incentives unchanged, while 29% increased incentives. A small but growing share of builders, 6%, up from 3% in May, reported reducing incentives, signaling that some markets may be becoming more competitive without additional buyer concessions.
Builder commentary reflected a more balanced outlook than in previous months. While many respondents continue to describe the housing market as sluggish, others noted improving sales activity and some relief from heavy incentive use.
Although one month does not establish a long-term trend, June's survey provides an encouraging sign that market conditions may be stabilizing. As builders continue to navigate elevated mortgage rates and affordability challenges, these improvements offer cautious optimism for the months ahead.
The latest NAHB/Wells Fargo Housing Market Index (released July 16, 2026) decreased to 34.
Highlights from the latest State of the Industry Report
Sales and traffic. Sales improved for a second month in June. 35% of builders reported higher year-over-year sales in June vs. 28% in May and 27% reported lower year-over-year sales, flat from May. Traffic improved sharply, with 38% of builders reporting higher year-over-year traffic, an improvement from 20% in May and near the recent high of 43% in
February.
Sales & traffic relative to expectations. Sales relative to expectations were flat in June. 29% reported better than expected sales vs. 30% in May and 31% reported worse than expected sales, improving from 37% in May. Traffic relative to expectations worsened compared to May. 27% of builders reported better than expected traffic, flat from May, but 33% reported worse-than-expected traffic vs.24% in May.
Base Pricing. The percentage of builders raising some, most or all base prices improved to 19% in June from 17% in May. The percentage of builders lowering some, most, or all base prices decreased to 15% vs. 28% in May.
Incentives. 29% of builders reported increasing some, most, or all incentives in June, flat from May. 6% reported decreasing incentives, up from 3% in May, and 54% left incentives unchanged.
Builder commentary. While many builders pointed to a continued sluggish market, overall the commentary was more balanced than prior months with some builders noting a pickup in sales and some relief on incentives.
HomeSphere/BTIG State of the Industry Report
HomeSphere partners with the global investment bank BTIG to create a monthly report to provide our builders and manufacturers with exclusive and timely insights about the market.
To compile the report, we survey HomeSphere’s 2,700+ regional and local home builders about sales, traffic, pricing, labor costs and other key industry metrics.
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