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‘Housing market is no longer moving in one direction’ says Cotality Chief Economist
On Aug. 10, 2026, Cotality released its August 2026 U.S. home insights price report. According to the report, the Midwest and Northeast…
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On Aug. 10, 2026, Cotality released its August 2026 U.S. home insights price report. According to the report, the Midwest and Northeast markets are still seeing firm price growth. Illinois is at a 6.4% year-over-year increase (YoY), followed by Connecticut at 6%, Nebraska at 5.8% and Indiana, also at 5.8%. National home price growth remains modest but shows signs of acceleration, edging up 0.3% month-over-month and 1.2% year-over-year in June 2026.
“As long as mortgage rates stay consistently high, factors such as local job and income growth, migration patterns and specific industrial investments will influence the real estate market,” said Dr. Selma Hepp, Chief Economist at Cotality.
Cotality also found that major industrial and tech investments are driving sharp local growth spikes-highlighted by Abilene, Texas, at +9.5% YoY, where AI data centers insulated the metro from broader statewide housing declines.
“Cities like Abilene demonstrate that even in a cooling state like Texas, targeted capital projects can generate localized demand shocks that completely contradict regional trends,” said Hepp.
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Mattamy Homes announces delivery of 150,000 homes
Mattamy Homes, a privately held homebuilder founded in 1978, announced that it has delivered over 150,000 homes in the U.S. and Canada.…
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Mattamy Homes, a privately held homebuilder founded in 1978, announced that it has delivered over 150,000 homes in the U.S. and Canada.
The builder delivered 8,453 homes in FY 2025, compared to 50,000 homes in its first 30 years of business.
In 2026, the builder appears to be accelerating its land acquisition, with new developments announced in Arizona, Florida and Calgary, in the past two months.
“This milestone reflects the consistency and dedication of our team members across the US,” said Keith Bass, CEO of Mattamy Homes US. “Every home we deliver represents a family we have the privilege to serve. As we continue to grow, our focus remains on building high-quality homes and communities that meet the needs of today’s buyers.”
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PulteGroup launches expansion to Northwest Florida
PulteGroup, one of the nation’s largest builders, announced expansion to Northwest Florida, launching its Panhandle Division. The builder, which delivered an estimated…
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PulteGroup, one of the nation’s largest builders, announced expansion to Northwest Florida, launching its Panhandle Division.
The builder, which delivered an estimated 29,572 homes in 2025, has a long history in the Sunshine State. It first expanded to Sarasota in 1997, then acquired Florida-based builder DiVosta a year later.
PulteGroup announced Taylor Larza to lead the new division as Vice President and Market Manager.
“The opportunity to build a new division from the ground up is an exciting challenge and a tremendous honor,” said Larza. “I’m eager to help establish a strong foundation for our Panhandle Division while continuing to work closely with our Northeast Florida team, which will continue to support our operational functions as we develop. I’m grateful for the experiences, relationships, and support I’ve received throughout my career at PulteGroup, and I look forward to this next chapter of growth and opportunity.”
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Highland Homes purchases 100 acres for self development
Highland Homes, one of Texas’ most prominent builders, launches its self-development arm with the purchase of 100 acres in Melina. The builder…
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Highland Homes, one of Texas’ most prominent builders, launches its self-development arm with the purchase of 100 acres in Melina. The builder estimates that the land will include 400 homesites ranging from 45 to 60 feet wide.
Highland, overseeing the development, believes the lots will be ready by the end of the year, with home sales to begin in spring 2027.
Highland Homes currently builds in 11 Austin-area communities and more than 100 in Texas. With these new avenues of self-development, the builder estimates delivering 600 homes in the near future to the Georgetown area.
“This is a natural next step for Highland Homes in Central Texas,” said Jeff Stinson, Senior Vice President of Land for Highland Homes. “Developing these projects allows us to time supply to properly meet buyer demand. We’re excited to work with such esteemed partners to bring these communities to life.”
Photo Courtesy of Highland Homes
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Policy Wins in the ROAD to Housing Act
For homebuilders, the emerging opportunity is smarter delivery While it is certainly good news that the 21st Century ROAD to Housing Act…
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For homebuilders, the emerging opportunity is smarter delivery
While it is certainly good news that the 21st Century ROAD to Housing Act has now passed, it will take some time for its elements to meet pent-up demand. But what will likely separate homebuilding winners and laggards will be how well they respond to the specific gaps in the housing market and how effectively they communicate that to potential buyers.
According to the State of the Nation’s Housing 2026, recently updated by Harvard’s Joint Center for Housing Studies, the lock-in effect remains the defining feature of the resale market and has also encouraged builders to make up the inventory slack. With roughly half of all outstanding mortgages with rates below 4%, existing home sales sat at a three-decade low of 4.1 million in 2025 and more recent data shows little improvement through the first half of 2026.
This lack of inventory has kept new construction central to overall supply even as builders face their own headwinds. Construction input costs have climbed 40% since January 2020, while the median new single-family home price hit nearly $425,000 in May: a level unaffordable to the typical renter household. While builders are certainly not competing in an easy environment, the data points to several specific places where the opportunity is real and in some cases, soon supported by federal policy.
Understandably, builders have gravitated toward higher price points to offset rising land, labor and materials costs, but that has left the entry-level buyer increasingly underserved. The share of listings affordable to households earning $75,000 or less fell from 49% in March 2019 to just 23% by March 2026. An annual survey by the National Association of Realtors shows first-time buyers accounting for just 21% of all purchases, an all-time low, with a median first-time buyer age of 40, a full decade older than the historical norm.
Fortunately, the response from builders is already measurable in the completion data and not merely anecdotal.
Homes of under 1,800 square feet rose from 23% of single-family completions in 2022 to 32% in 2025, while 37% of new homes were built on lots less than 7,000 square feet, up 10% from 2014. Townhomes, which can offer some benefits of single-family privacy versus condominium flats, grew from 13% to 18% of completions over the same period.
The ROAD to Housing Act further reinforces this shift. The Accelerating Home Building Act provides federal grants to local governments to help them streamline and expedite affordable housing construction by adopting pre-reviewed housing designs for ADUs, duplexes and townhouses. The goal is to speed up the entitlement time that has historically discouraged smaller-footprint projects, with a 10% set-aside reserved for rural markets. A new $200 million annual innovation fund rewards jurisdictions that streamline permitting and density bonuses. With implementation happening mostly at the local level, these carrots could prove helpful for jurisdictions far out of balance with pent-up housing needs.
While AI is promising, most adoption among top builders has gone toward sales and marketing rather than sourcing materials or on construction sites: Homebuilding productivity grew just 15% between 1993 and 2023 versus 49% for the broader economy.
The ROAD to Housing Act could provide much-needed tailwinds to close that gap.
Manufactured and modular housing occupy similar ground. Only 102,700 manufactured homes were built in 2025, barely a third of the annual average from the 1970s through the 1990s, even with cost and often build quality advantages over site-built products.
The ROAD to Housing Act’s Title 3 removes several longstanding barriers. It eliminates the wildly outdated permanent chassis requirement, raises FHA-insured manufactured housing loan limits and directs the Department of Housing and Urban Development to identify and reduce financing obstacles facing modular developers. Could the simultaneous loosening in the regulatory and the financing environments for this segment lead to a revival?
As greenfield building sites tighten in many metros, a mix of infill sites, redevelopment parcels and public-private partnerships on underutilized government land are becoming more viable, aided by the Act’s streamlined NEPA review, its infill exemptions and a new RESIDE grant program for converting vacant commercial buildings to housing.
Still, none of this changes the underlying math; depending on the estimate, the country still needs several hundred thousand to several million more units.
The builders best positioned through the rest of 2026 and beyond are unlikely to be the ones simply building more of the same. They’ll be the ones adjusting product mix, standard features, land strategy and financing to meet buyers where the data shows they are. But now they’ll have a federal policy environment actively pulling in the same direction.
By Patrick S. Duffy. He is a Principal for MetroIntelligence. He can be reached at pduffy@metrointel.com
This is the full column, read the print version here.
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Rising home prices impact summer sales
Due to higher mortgage rates and home prices, summer home sales have been more moderate this year. Home sales, including single-family homes, townhomes, condos and co-ops, fell 1.7% in July 2026 compared to June. However, sales reached a 0.7% increase compared to a year ago. Lawrence Yun, the National Association of REALTORS’ (NAR) chief economist, said that the year is still showing signs of improvement.
“Home sales have been remarkably stable, even amid the rising mortgage rate environment of the past few months,” said Yun.
NAR recently reported that 80% of about 235 major metro areas it tracked continued to see home prices rise in the second quarter. Some metros even reported double-digit annual price increases of about 10%.
“Sellers are making more price adjustments as summer progresses, and buyers are responding more selectively, but homes are still going under contract at a faster pace than last year,” said Danielle Hale, Realtor.com’s chief economist. “The key question for the months ahead is whether price reductions help sustain buyer engagement or signal that sellers are getting ahead of softer demand.”
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Mortgage demand moderates in July
Recent analysis from the National Association of Home Builders (NAHB) of the Mortgage Bankers Association’s (MBA) Market Composite Index shows that mortgage applications fell across all sectors in July.
Compared to June, applications decreased 6.6% and dropped 1.5% year-over-year, the first decline in two years.
With current 30-year fixed-rate mortgage rates at 6.69%, these dips in applications are largely attributed to growing economic pressures on consumers and geopolitical uncertainty with the war in Iran.
In July, the average loan price also fell across all categories.
“The overall loan size decreased 2.5% to $383,600,” wrote NAHB Forecasting and Analysis economist Catherine Koh. “The average purchase loan size fell 2.6% to $444,600, while the average refinance loan size declined 2.2% to $296,000.”
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Starter-home affordability improves for 8th consecutive month
According to a new analysis from Redfin, starter-home affordability is improving. The income needed to afford an average U.S. starter home is down 1.5% from a year ago, marking eight straight months of declines as price growth cools. Affordability for entry-level homes is improving more than the overall market; the income needed to buy the typical U.S. home is down just 0.5% because price growth remains stronger at higher price points as affluent buyers remain active.
“We consider a home affordable if a buyer taking out a mortgage would spend no more than 30% of their income on their monthly housing payment. Starter homes are those in the 5th to 35th percentile for sale prices,” said Redfin in its analysis. “This is based on a Redfin analysis of median home sale prices, prevailing mortgage rates and property-tax payments and assumes a 15% down payment. This report focuses on June 2026, the most recent period for which data is available.”
The analysis found that the income needed to buy a starter home is declining while earnings are rising. The typical American household earns an estimated $87,599, about $17,000 more than what is needed to buy the median-priced U.S. starter home.
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Mattamy Homes announces delivery of 150,000 homes
Mattamy Homes, a privately held homebuilder founded in 1978, announced that it has delivered over 150,000 homes in the U.S. and Canada.
The builder delivered 8,453 homes in FY 2025, compared to 50,000 homes in its first 30 years of business.
In 2026, the builder appears to be accelerating its land acquisition, with new developments announced in Arizona, Florida and Calgary, in the past two months.
“This milestone reflects the consistency and dedication of our team members across the US,” said Keith Bass, CEO of Mattamy Homes US. “Every home we deliver represents a family we have the privilege to serve. As we continue to grow, our focus remains on building high-quality homes and communities that meet the needs of today’s buyers.”
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PulteGroup launches expansion to Northwest Florida
PulteGroup, one of the nation’s largest builders, announced expansion to Northwest Florida, launching its Panhandle Division.
The builder, which delivered an estimated 29,572 homes in 2025, has a long history in the Sunshine State. It first expanded to Sarasota in 1997, then acquired Florida-based builder DiVosta a year later.
PulteGroup announced Taylor Larza to lead the new division as Vice President and Market Manager.
“The opportunity to build a new division from the ground up is an exciting challenge and a tremendous honor,” said Larza. “I’m eager to help establish a strong foundation for our Panhandle Division while continuing to work closely with our Northeast Florida team, which will continue to support our operational functions as we develop. I’m grateful for the experiences, relationships, and support I’ve received throughout my career at PulteGroup, and I look forward to this next chapter of growth and opportunity.”
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Highland Homes purchases 100 acres for self development
Highland Homes, one of Texas’ most prominent builders, launches its self-development arm with the purchase of 100 acres in Melina. The builder estimates that the land will include 400 homesites ranging from 45 to 60 feet wide.
Highland, overseeing the development, believes the lots will be ready by the end of the year, with home sales to begin in spring 2027.
Highland Homes currently builds in 11 Austin-area communities and more than 100 in Texas. With these new avenues of self-development, the builder estimates delivering 600 homes in the near future to the Georgetown area.
“This is a natural next step for Highland Homes in Central Texas,” said Jeff Stinson, Senior Vice President of Land for Highland Homes. “Developing these projects allows us to time supply to properly meet buyer demand. We’re excited to work with such esteemed partners to bring these communities to life.”
Photo Courtesy of Highland Homes
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‘Housing market is no longer moving in one direction’ says Cotality Chief Economist
On Aug. 10, 2026, Cotality released its August 2026 U.S. home insights price report. According to the report, the Midwest and Northeast markets are still seeing firm price growth. Illinois is at a 6.4% year-over-year increase (YoY), followed by Connecticut at 6%, Nebraska at 5.8% and Indiana, also at 5.8%. National home price growth remains modest but shows signs of acceleration, edging up 0.3% month-over-month and 1.2% year-over-year in June 2026.
“As long as mortgage rates stay consistently high, factors such as local job and income growth, migration patterns and specific industrial investments will influence the real estate market,” said Dr. Selma Hepp, Chief Economist at Cotality.
Cotality also found that major industrial and tech investments are driving sharp local growth spikes-highlighted by Abilene, Texas, at +9.5% YoY, where AI data centers insulated the metro from broader statewide housing declines.
“Cities like Abilene demonstrate that even in a cooling state like Texas, targeted capital projects can generate localized demand shocks that completely contradict regional trends,” said Hepp.
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Mortgage rates average 6.69%
As of Aug. 6, 2026, mortgage rates averaged 6.69%, according to Freddie Mac’s Primary Mortgage Survey (PMS). These results are up from last week’s average of 6.66%. A year ago at this time, the 30-year FRM averaged 6.63%.
“The 30-year fixed-rate mortgage averaged 6.69% this week,” said Sam Khater, Freddie Mac’s Chief Economist. “While mortgage rates continue to influence affordability, the housing market is showing signs of adjustment, with listing prices modestly below year-ago levels and for-sale inventory improving from the limited supply seen in recent years.”
The 15-year FRM averaged 6.01%, down from the previous week’s 6.04%. A year ago at this time, the 15-year FRM averaged 5.75%.
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Residential construction spending averages $877.1 billion in June
On Aug. 3, 2026, the United States Census Bureau released its Monthly Construction Spending in June 2026 report. According to the report, residential construction was at a seasonally adjusted annual rate of $877.1 billion in June, 0.3% (±1.3%)* below the revised May estimate of $879.9 billion.
Total construction spending during June 2026 was estimated at a seasonally adjusted annual rate of $2,166.5 billion, 0.1% (±0.8%)* below the revised May estimate of $2,168.5 billion. The June figure is 3.2% below the June 2025 estimate of $2,237.7 billion. During the first six months of this year, construction spending amounted to $1,046.9 billion, 3.5% below the $1,084.5 billion for the same period in 2025.
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How California kitchen designs are evolving
In Southern California homes, kitchen designs are moving away from cold, showroom-style spaces toward warmer, more livable rooms. While indoor-outdoor flow remains the defining feature, warm wood and natural materials are becoming just as important in kitchen designs.
Large glass pocket doors connect the kitchen directly to the patio, allowing entertainment to flow naturally between both spaces. Homeowners continue to prioritize a seamless blend between indoor and outdoor living, paving the way for open floor plans in kitchens to continue in popularity.
Shifting towards color palettes, white kitchens are evolving rather than disappearing entirely. Homeowners are pairing lighter upper cabinets with a darker, contrasting island or lower cabinetry for a two-tone look. As a result, this layered approach gives a modern kitchen more visual interest than an all-one-color design, while still keeping the space feeling bright.
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Tri Pointe Homes unveils LivingWell in Utah
Tri Pointe Homes announced the completion of its LivingWell concept home and the start of sales at Pavilions at Holladay Hills, an exclusive collection of six one-of-a-kind luxury estate residences in Holladay, Utah. The completed concept home gives prospective buyers their first opportunity to experience LivingWell, Tri Pointe’s next-generation approach to whole-home wellness.
Photography by Kara Mercer “LivingWell represents an important evolution in how we think about designing homes,” said Tom Mitchell, President and Chief Operating Officer of Tri Pointe Homes. “Buyers increasingly want homes that contribute meaningfully to the lives they hope to lead. Luxury is no longer measured by scale or finishes alone, but by whether a home can adapt, restore and support the people living there. Pavilions at Holladay Hills is Tri Pointe’s response, offering residences that are highly personalized, flexible over time and holistically focused on human wellbeing.”
The LivingWell concept home integrates wellness throughout the entire home, rather than confining it to individual rooms or amenities. Organized around a private interior courtyard, the three-story, 7,774-square-foot contemporary English manor includes six bedrooms, nine bathrooms, a four-bay garage and a separate carriage home for guests or multigenerational living. Its orientation, enhanced glazing and circulation draw natural light into the interior while strengthening indoor-outdoor living.
Photography by Ikon Media “Good design should support our routines while making space for the ways we evolve,” said Bobby Berk, LivingWell’s designer, Emmy-winning TV host and author. “LivingWell brings that balance of comfort and freedom into wellness-oriented spaces that are deeply connected to the people who live there. This project is exciting because it doesn’t view wellness as just another trend. LivingWell is a platform for imagining where residential design can go next.”
Photography by Kara Mercer The project builds upon Tri Pointe Homes’ LivingSmart program, the company’s longterm commitment to sustainability, energy efficiency and responsible building practices. LivingWell extends to how a home feels by incorporating light, flow, comfort, connection and adaptability into the routines of daily life. The approach is anticipated to be expressed across all six residences at Pavilions at Holladay Hills.
Please visit tripointehomes.com for more information.
Backyard and primary bathroom photos courtesy of Ikon Media.
Kitchen and dining room photos courtesy of Kara Mercer.
Photos courtesy of Tri Pointe Homes.
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ASID Announces 2026–2027 National Board of Directors
The American Society of Interior Designers (ASID) announced its National Board of Directors for 2026-2027. Board leadership is effective October 1, 2026.
“The strength of ASID has always been rooted in the expertise and diversity of its volunteer leadership,” said Khoi Vo, chief executive officer of ASID. “Our incoming Board reflects the breadth of today’s design profession, bringing together accomplished practitioners, industry leaders and advocates who understand both the opportunities and the challenges shaping our future. Their leadership will help ensure ASID continues to elevate the profession, support our members and demonstrate the value of design in improving the way people live, work and thrive.”
The 2026–2027 National Board of Directors includes:- Chair: Shundra Harris, FASID, NCIDQ, RID
- Chair-Elect: Laura McDonald Stewart, FASID, RID, LEED AP, WELL AP
- Past Chair: Elizabeth Von Lehe, ASID, NCIDQ, CID, LEED AP ID+C
Directors-at-Large
- Joni Burden, ASID, NCIDQ
- David Cordell, FASID, LEED AP, WELL AP, Fitwel Ambassador
- Caroline P. Gama, ASID Allied, CAPS, Green AP
- Dina Lamanna, ASID, NCIDQ
- Kristie Nicoloff, ASID, NCIDQ, RID, IIDA
- Kendra Ordia, ASID
- Veronica Sanders, ASID, RID, NCIDQ
Industry Partner Representatives
- Paul Adams, ASID Affiliate
- Lauren Corbin, ASID Affiliate
- Jennifer Nye, ASID Affiliate
Exclusive Feature
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A More Balanced Market is Here
The housing market finally feels more normal. Buyers have more choices, bidding wars have become less common and builders are once again…
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Interior design trends to look out for in 2027
Looking towards 2027, interior design trends are evolving from cool-toned, overly staged interiors. Instead, buyers will be looking for warmth and designs that feel grounded. While the cooler color palette of grey and white hues has been popular in the last decade, warm neutrals, earth tones and natural wood cabinetry will take center stage next year in new home construction.
While open floor layouts will carry into 2027, buyers have been prioritizing more privacy, defined zones and flexible rooms for work and quiet. This is also likely to continue in next year’s interior design trends.
Throughout 2026, we have seen buyers’ desire for wellness-focused features such as natural light, quieter spaces and spa-style baths. This drive for wellness-inspired design will continue, as buyers seek interiors that reflect and improve their daily routines.
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Danielian Associates Architects + Planners Acquires Irwin Partners Architects
Danielian Associates Architects + Planners (DA) announced that Irwin Partners Architects (IPA) joined the team as a Danielian Associates company.
Bringing together two of Orange County’s longest-standing residential design firms, the partnership expands the expertise and resources available to clients while preserving the trusted relationships, personalized service and experienced team that have defined IPA for more than 60 years.
IPA, as a Danielian Associates company, will continue serving its clients through the same leadership, project teams, and client relationships, now supported by Danielian’s well-versed design teams.
Together, the firms offer expanded expertise in senior housing, rehabilitation and adaptive reuse, affordable housing, build-to-rent, multifamily, mixed-use, master-planned communities and community planning, creating a stronger team ready to serve the evolving housing market across the country.
“For nearly six decades, Danielian has been committed to exceptional residential design and lasting client relationships,” said John Danielian, AIA, LEED AP, President of Danielian Associates. “IPA has built an outstanding reputation through its talented team and trusted client partnerships. Together, we are creating an even stronger firm while maintaining the values that have defined both organizations.”
Joining DA allows us to build on everything our clients already value about Irwin Partners,” said Greg Irwin, head of Irwin Partners Architects. “The people they know and trust remain the same. We now have more resources behind our team to better serve them.”
Together, Danielian Associates and Irwin Partners are building on more than a century of combined residential design experience, creating a stronger platform to serve clients with the same trusted relationships, expanded expertise and greater resources for the future. Danielian Associates Architects + Planners proudly announces that Irwin Partners Architects has joined the team as a Danielian Associates company.
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Residential construction spending averages $877.1 billion in June
On Aug. 3, 2026, the United States Census Bureau released its Monthly Construction Spending in June 2026 report. According to the report, residential construction was at a seasonally adjusted annual rate of $877.1 billion in June, 0.3% (±1.3%)* below the revised May estimate of $879.9 billion.
Total construction spending during June 2026 was estimated at a seasonally adjusted annual rate of $2,166.5 billion, 0.1% (±0.8%)* below the revised May estimate of $2,168.5 billion. The June figure is 3.2% below the June 2025 estimate of $2,237.7 billion. During the first six months of this year, construction spending amounted to $1,046.9 billion, 3.5% below the $1,084.5 billion for the same period in 2025.
Latest Issue
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July 2026
This issue of Builder and Developer features the celebration of women advancing the homebuilding industry.
Exclusive Feature
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Redefining the Single-Story Home Design
Tri Pointe Homes continues to set the standard for high-quality houses For 17 years, Tri Pointe Homes has built 330 neighborhoods and…
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Mortgage rates average 6.58%
On July 23, 2026, Freddie Mac released the results of its Primary Mortgage Market Survey, revealing the 30-year fixed-rate mortgage (FRM) averaged 6.58%, up from the week before when it averaged 6.55%. A year ago at this time, the 30-year FRM averaged 6.74%.
“The 30-year fixed-rate mortgage averaged 6.58% this week,” said Sam Khater, Freddie Mac’s Chief Economist. “As market conditions continue to evolve, borrowers should remember that shopping around for a mortgage rate can make a meaningful difference, potentially saving them thousands over the loan’s lifetime.”
The 15-year FRM averaged 5.96%, up from the week before when it averaged 5.93%. A year ago at this time, the 15-year FRM averaged 5.87%.
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Berkshire Hathaway completes acquisition of Taylor Morrison
Berkshire Hathaway’s acquisition of Taylor Morrison is complete. The two companies released a joint statement announcing the integration of Taylor Morrison with Berkshire Hathaway-owned Clayton Properties Group site-built homebuilding subsidiaries. Between the combined homebuilding enterprises, an estimated 23,000 site-built homes were closed in 2025.
“Today marks an important step forward as Taylor Morrison joins Berkshire. This best-in-class national homebuilder will lead our vision for a unified site-built homebuilding operation,” said Berkshire Hathaway’s Chief Executive Officer Greg Abel. “Together, we will help more Americans achieve their dream of homeownership.”
“We have always believed in the strength of our business, and today Berkshire Hathaway has confirmed that belief,” said Taylor Morrison Chief Executive Officer Sheryl Palmer. “As we enter this new chapter, the scale and reach we gain by unifying with Berkshire and Clayton’s regional site-built homebuilders is transformative. We’ll now serve more customers, in more markets, with more choices—while maintaining the specialized local expertise that has made us successful. We’re thrilled to build upon that success as we scale to create a combined homebuilding platform unlike anything in the industry.”
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Acquisition increases among home builders
Most home builders predicted that elevated mortgage rates and hesitancy to buy homes would be among their greatest challenges in 2026. As companies seek efficiencies and economies of scale, the industry is experiencing increased consolidation activity: Taylor Morrison was acquired by Berkshire Hathaway; Tri Pointe Homes by Sumitomo Forestry; and United Homes Group by Stanley Martin Home. The National Association of Home Builders/Wells Fargo Housing Market Index survey asked about merger and acquisition (M&A) activity in August 2025 and again in June 2026. Results reveal an uptick in the share of builders reporting increased M&A activity in their local markets, from 14% in August 2025 to 21% in June 2026. More than 40% of builders, however, report no changes in consolidation trends in the markets where they operate.
A second finding also points to somewhat higher levels of M&A activity in the industry, meaning the share of builders who have been approached for acquisition and/or merger doubled between August 2025 and June 2026, from 9% to 18%.
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Federal Reserve holds rates steady for fifth consecutive month
The Federal Reserve, during its July policy meeting, decided to hold interest rates at 3.5% to 3.75%. This comes amid elevated inflation rates, which were attributed to supply shocks. This is also the Fed’s fifth consecutive hold; the last rate cut was in December 2025.
“The Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent, in support of the Federal Reserve’s dual mandate,” the Board said in a statement. “The Committee is continuing its policy of maintaining ample reserves in the banking system.”
This is Federal Reserve Chairman Kevin Warsh’s second decision of his tenure since he took the helm in May. The National Association of Home Builders Chief Economist, Robert Dietz, discussed what this means for builders.
“If you squint a little, this can be seen as a dovish policy message because, while the Fed can affect aggregate demand by tightening monetary policy (as the bond market appears to expect), the central bank cannot effectively address supply shocks with policy,” said Dietz. “While this should not be interpreted as taking rate hikes off the table, it is an accurate statement of current macroeconomic conditions and many analysts’ views that the Fed cannot solve energy price increases due to war or one-off tariff effects with monetary policy.
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New home sales edge higher
According to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, newly built single-family home sales rose 1.6% in June to a seasonally adjusted annual rate of 628,000.
“New home sales are gaining some momentum at the more affordable range of the market, with homes priced below $300,000 accounting for 23% of June sales, up from 16% a year earlier,” said the National Association of Home Builders (NAHB) Chief Economist Robert Dietz. “However, that price point is generally only achievable in markets with lower development and construction costs, particularly with respect to lower state and local regulatory costs.”
“The pace of new home sales has remained constrained in recent months by elevated mortgage rates,” said Bill Owens, chairman of the National Association of Home Builders (NAHB) and a home builder and remodeler from Worthington, Ohio. “Builders continue to use incentives to support sales, with NAHB survey data showing that 62% of builders offered some form of incentive in June.”
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With Exhibitor Space Sold Out, Registration is Open for the 2026 Building Industry Show, the “Not Your Typical Tradeshow” Experience
It’s official: The highly-anticipated exhibitor show floor at the upcoming Building Industry Show (BIS) has sold out all available booth space. While exhibitor space is full, registration is open for those homebuilding industry pros who want to be in the room for exclusive access to homebuilders, trade associates, service providers and other leading companies spanning Southern California’s homebuilding industry.
BIS 2026, hosted by the Building Industry Association of Southern California (BIASC), returns to Indian Wells in September for its high-energy takeover of the region’s home building scene, bringing together the nation’s top homebuilders and more than 1,000 of the industry’s biggest players for two epic days of business-to-business networking, entertainment, industry education and business opportunities and event experiences.
The nation’s top homebuilders at BIS, with more to be announced, include Lennar Homes, CBC Homes, Crestwood Communities, Davidson Communities, Meritage Homes, Pacific Communities, Richmond American, Risewell Homes, Shea Homes, Toll Brothers, Tri Pointe Homes and Warmington Residential.
Dubbed as “not your typical tradeshow,” BIS 2026 will deliver an abundance of experiences for attendees:
- Exhibitor Show Floor Experience
- Over 100 exhibitor booths with Southern California’s top homebuilders and housing professionals showcasing the latest in industry trends, products and services.
- Meet the Builder Session
- One-on-one networking opportunities connecting exhibitors, associates and decision-makers for increased opportunities to grow business.
- Casino-Style Gaming
- Casino-style gaming tables on the exhibitor floor where attendees can network and win prizes.
- Over $10,000 in Massive Prizes
- Opportunities to win a Hawaiian getaway, an ultimate pro sports tickets package, luxury golf escapes at famed Pebble Beach Resorts and Pelican Hill Golf Club, tickets to see Bruno Mars, and tickets to see Metallica at the Las Vegas Sphere.
- Styx & Chicago Live in Concert
- Attendees will receive tickets to experience two legendary rock bands performing live at Acrisure Arena.
- Builders vs. Associates Golf Tournament
- A friendly yet competitive tournament bringing together builders and industry partners for a memorable day on the course.
- Live iHeartRadio Broadcast
- A live broadcast from the show floor featuring interviews with industry leaders and exhibitors throughout the exhibitor show floor experience.
- Davidson Communities Wine Tasting & Model Home Tour
- An exclusive wine tasting experience and guided tour of a Davidson Communities model home at Cotino™, the new Storyliving by Disney © Community in the Coachella Valley.
- Industry Education Sessions
- Insightful presentations and discussions covering the latest trends, challenges, innovations and opportunities impacting homebuilding.
- Exhibitor Reception & Networking Events
- Multiple opportunities to connect with builders, developers, suppliers and decision-makers in a relaxed environment.
- Chapter Board Installation Gala Dinner
- An elegant evening recognizing incoming chapter presidents, board members and volunteer leaders.
As one attendee of past BIS events attested, “There is no trade show like BIS. The builders come to the exhibitor floor and stay due to all the important industry strategic meetings, networking programs and entertainment throughout the day and night.”
“BIS 2026 was designed with a simple goal: create an event where meaningful business relationships happen naturally – all in a fun, festive environment,” said Jeff Montejano, BIASC Chief Executive Officer. “Rather than relying on the traditional trade show format, we’ve built an experience that is engaging, interactive and centered on bringing people together. From the exhibit hall to every networking opportunity throughout the event, every element is intentionally designed to encourage conversations, strengthen partnerships and deliver lasting value for our members and exhibitors.”
BIS dates and location:
September 2-3, 2026Renaissance Esmeralda Resort & Spa, Indian Wells
Companies interested in having a booth at the BIS exhibitor show floor are encouraged to secure a spot on the waiting list by contacting us at membership@biasc.org.How to Register as an Attendee and Boost Business Through Sponsorship
To secure a spot as an attendee as this event that is expected to fully sell out and to boost business visibility among Southern California’s homebuilding industry, visit www.BuildingIndustryShow.comAbout BIASC
The Building Industry Association of Southern California is the voice of the region’s building industry, with five chapters offering localized services to building professionals from Ventura to the southern tip of Orange County. For more than a century, the association has served its builder and associate members by anticipating, protecting, and promoting their common interests through a wide range of programs, services, councils, and committees. For more information on the Building Industry Association of Southern California, visit biasc.org.
- Exhibitor Show Floor Experience
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Starter home prices outpace buyer income
The average age of a homeowner is 44, despite Gen Z homeownership rising in 2025. However, for buyers its not finding a home that is a challenge.
According to recent research from Realtor, there are 300,000 fewer starter homes than before the pandemic. To address this, builders in 2026 are building on smaller lots at a quicker pace than the year before.
The reality is the cost to purchase a starter home has dramatically increased. The average price of a starter home has risen from $256,000 in 2019 to $344,000 today. Consumer buying power and salaries have not followed suit. The average income needed to purchase is $78,000, up from $43,000 in 2019, while over the same period median household income rose only 28.3% at an estimated $69,000 to $88,100.
“The barrier for today’s starter home buyer isn’t finding a home, it’s qualifying for one,” said Senior Economist “With mortgage rates still in the mid-6% range and the income needed to purchase a typical starter home up more than 80% since 2019, many would-be buyers are sitting on the sidelines even as listings accumulate.
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New single-family homes shift to smaller lots
The long-term trend of building single-family detached homes on smaller lots appears to have stabilized. According to an analysis from the National Association of Home Builders, new single-family detached homes have steadily shifted toward smaller lots as a direct result of builders’ efforts to improve affordability and attract homebuyers.
According to the latest Survey of Construction, the share of new homes built on smaller lots remained near record highs in 2025, following more than a decade of steadily shrinking lot sizes.
The share of small lots remained high in 2025, with close to two-thirds of new single-family detached homes sold occupying lots under 9,000 square feet. Moreover, 38% of lots were under 7,000 square feet. These shares are just slightly below the record highs established over the last two years.
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These 5 design trends are back in style
This year has been the year of comebacks; previously outdated trends are making their way back into the limelight. Interior designers weighed in on the former trends they have seen coming back in style in today’s homes.
“After years of safe neutrals and minimalism, there’s a renewed desire for personality in interiors, spaces that people can feel emotionally connected to,” said Phoebe Beachner, an interior designer at Hart Howerton.
While open floor plans have dominated this year, there has been a gradual increase in requests for closed floor plans. This shift might be remerging due to nostalgia, a desire to restore an older home to its roots or a need to confine certain activities and items to certain areas.
Maximalism, brown tones that were highly popular in the 1980s and built-in seating are also back in style.
Exclusive Feature
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Toll Brothers’ Strategy and Style
Inside the builder’s executive evolution and dignified design Since we last featured Toll Brothers as our 2025 Builder of the Year, the…
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