Builder Survey Shows Growing Pressure on Sales, Traffic and Pricing
September 28, 2026
August brought a broad-based slowdown for builders, with sales, traffic and pricing measures all weakening from July’s already-light results. The latest HomeSphere/BTIG State of the Industry survey points to growing demand and affordability pressures as builders navigate a more challenging market.
Only 19% of builders reported higher year-over-year sales in August, down from 27% in July and 35% in June. That was the lowest reading since November 2023. Meanwhile, 42% reported lower sales, the highest level since November 2023. Traffic followed a similar trend. Just 20% of builders reported higher year-over-year traffic, down from 33% in July and the lowest reading since the start of the year. The share reporting lower traffic jumped to 37%, compared with 23% in July.
Results also fell short of expectations. Only 14% of builders reported better-than-expected sales, while 14% reported better-than-expected traffic. Both significant declines from July and among the lowest readings in several years.
As demand softened, builders increasingly turned to pricing and incentives to support sales. 30% of builders lowered some or all base prices in August, double the 15% reported in July. Meanwhile, 36% increased some, most or all incentives, up from just 19% in July.
Builder commentary was more mixed than the overall survey results, but affordability and weak demand were recurring themes.
Last month, we highlighted the risk that demand could moderate further if the mortgage-rate and oil-price headwinds that emerged in July continued. The August results suggest that risk has materialized. With mortgage rates rising again in September, affordability and buyer demand will remain important factors to watch in the months ahead.
The latest NAHB/Wells Fargo Housing Market Index (released September 16, 2026) dropped three points to 32.
Highlights from the latest State of the Industry Report
Sales and traffic. Sales extended their pullback in August. 19% of builders reported higher year-over-year sales in August, down from 27% in July, while 42% reported lower year-over-year sales vs. 38% in July. Traffic similarly deteriorated, with 20% of builders reporting higher year-over-year traffic, down from 33% in July, while those reporting lower traffic jumped to 37% from 23% in July.
Sales & traffic relative to expectations. Both sales and traffic relative to expectations declined in August. Only 14% of builders reported better-than expected sales, down from 23% in July, while worse-than-expected sales increased to 44% from 29%. Traffic relative to expectations showed a similar pattern, with better-than-expected traffic falling to 14% from 31% in July, and worse-than expected traffic rising to 34% vs. 29% in July.
Base Pricing. The share of builders raising some, most or all base prices declined to 13% vs. 21% in July. The percentage lowering some, most, or all base prices increased to 30% vs. 15% in July, while those reporting mixed pricing actions decreased to 22% from 29% in July.
Incentives. Incentive use picked up in August, with 36% of builders increasing some, most, or all incentives in August vs. 19% in July. Mixed incentive activity across communities fell to 15% from 21% in July, and 46% left incentives unchanged, down from 56% in July.
Builder commentary. Commentary in August was mixed, although most builders flagged low traffic and/or sales.
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.
How to get the monthly report
If you are a builder and would like to participate and receive the monthly report for free, request an invitation below:
