Home Builder Sales Stabilize as Incentives and Price Cuts Increase
October 20, 2026
The HomeSphere + BTIG Monthly State of the Industry Report found home builder sales showed mixed results in September as more builders reported year-over-year sales gains, while the share reporting declines also increased. At the same time, buyer traffic weakened, and builders stepped up incentives and price cuts to support sales.
According to the report, 22% of builders reported higher year-over-year sales per community in September, up from 19% in August. However, 45% reported lower sales, compared with 42% the previous month. Traffic continued to weaken. Just 16% of builders reported higher year-over-year traffic, down from 20% in August and the lowest level since November 2023. Meanwhile, 43% reported lower traffic, up from 37% in August.
Despite weaker traffic, builders reported some improvement relative to expectations. In September, 20% of respondents said sales were better than expected, up from 14% in August. The share reporting worse-than-expected sales edged down to 43% from 44%. Traffic results followed a similar pattern. Twenty percent of builders reported better-than-expected traffic, up from 14% in August, while 35% reported worse-than-expected traffic, compared with 34% the previous month.
The results suggest that while conditions remain challenging, some builders are performing better than anticipated.
Builders continued to adjust pricing as they worked to attract buyers and maintain sales momentum. In September, 33% of builders reported lowering some, most or all base prices, up from 30% in August. The share raising some, most or all base prices also increased, reaching 17%, compared with 13% the previous month. Meanwhile, the percentage reporting a mix of price increases and decreases fell to 12% from 22%.
Incentive use also accelerated. Forty-five percent of builders reported increasing some, most or all incentives in September, up from 36% in August. The share leaving incentives unchanged declined to 39% from 46%. The increased use of incentives and price reductions underscores the challenges builders face in generating demand as buyer traffic declines.
Feedback from builders pointed to varied conditions across markets. Some respondents reported strong activity in desirable locations and communities with available inventory. Others cited limited traffic, slower buyer decision-making and significantly fewer closings. Several builders also noted that demand at the higher end of the market appeared more resilient.
These differences highlight how location, inventory and buyer demographics continue to influence performance, even as the broader market faces affordability and demand challenges.
September's results point to a housing market where sales remain uneven and buyer traffic continues to weaken. Although some builders are outperforming expectations, increased reliance on incentives and price cuts suggests that attracting buyers remains a priority.
The latest NAHB/Wells Fargo Housing Market Index (released October 18, 2026) dropped three points to 29.
Highlights from the latest State of the Industry Report
Sales and traffic. Builders reporting higher y/y sales increased to 22% from 19% but those reporting lower sales also increased to 45% from 42%. Traffic weakened, with only 16% of builders reporting higher y/y traffic, down from 20% in August and the lowest level since November 2023, while those reporting lower traffic increased to 43% from 37%.
Sales & traffic relative to expectations. Sales and traffic relative to expectations improved from August. 20% of builders reported better-than-expected sales in September, up from 14% in August, while 43% reported worse-than-expected sales vs. 44% in August. Similarly, 20% reported better-than-expected traffic, up from 14%, while 35% reported worse-than-expected traffic vs. 34% in August.
Base Pricing. Builders continued to lower prices in response to weaker demand. The percentage of builders lowering some, most, or all base prices increased to 33% from 30% while the percentage of builders raising some, most, or all base prices increased to 17% in September from 13% in August. Those reporting mixed pricing actions decreased to 12% from 22%.
Incentives. Incentive use accelerated in September, with 45% of builders increasing some, most, or all incentives vs. 36% in August, while the share leaving incentives unchanged declined to 39% from 46%.
Builder commentary. Commentary in September was mixed, with some respondents reporting strong activity in desirable locations and inventory communities, while others noted limited traffic, slower decision-making, and materially reduced closings. Multiple builders cited more resilient demand on the higher end. 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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