Builders are cutting prices — but buyers still aren’t biting
“Builders also continue to face higher material costs, rising gas and diesel prices and persistent labor shortages. In some markets, builders report that increased immigration enforcement is discouraging legal workers from reporting to job sites.”
Price cuts deepen as incentive use climbs
Price reductions are becoming structurally embedded rather than a short-term promotional response. In September, 38% of builders reduced prices, up from 35% in August. The average price cut held at 6% for the sixth consecutive month, a figure that underscores how little movement there has been in the economics of new construction despite months of discounting.
Meanwhile, 66% of builders reported using sales incentives this month, up from 63% in August and the highest share since December’s 67%.
“The HMI shows builder confidence at its lowest level since September 2025, as tight lending conditions and elevated land, labor and construction costs persist,” said Robert Dietz, NAHB chief economist.
“Notably, 42% of builders rated current lot availability as poor and 38% as fair.”
