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June 2026 Housing Market Forecast
The National Association of REALTORS released an analysis forecasting the housing market dynamics in June, including sales, inventory and buying trends. The analysis cited various factors, called seasonality trends, that influence the housing market and compared the current market conditions to previous seasonality trends to predict the June 2026 housing forecast.
The analysis found that existing-home sales typically rise by 8.2% during the month, reaching their highest level of the year on average. The beginning of the summer marks a distinct shift in the housing market, characterized by the end of the school year for most localities, additional daylight and consistently warm weather. These conditions provide more flexibility for potential buyers to view a wider range of open listings.
June usually sees an average increase of 0.8% in housing inventory, presenting specific advantages for sellers, including the optimal moving conditions previously mentioned, if they plan to buy and the high prices associated with the season.
Historically, the average home spends about 30 days on the market in June, representing the fastest turnover in the year, alongside May. The favorable weather conditions drive prospective buyers to spend more time viewing homes, resulting in more frequent offers and decreasing the days spent on the market.
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Less young adults are first-time homebuyers
According to a report from First American, young adults are the missing gap in first-time homebuyers. Nearly half of 20-to 24-year-olds still lived with their parents in 2025. Only about 25% of 25-to 29-year-olds owned their homes.
The reality is that homeownership is arriving later in life for young adults, with the delay often originating at moving out of their childhood homes.
Young adults are moving through traditional markers of adulthood, such as moving out, work, marriage and children, on a different timeline than previous generations. As those milestones shift, the housing sequence that often follows, moving out, renting and buying, also shifts.
Most young adults are still renting. While today’s renters are likely to become tomorrow’s buyer, that “tomorrow” is happening later in life. The reasons for this vary between affordability challenges, as well as other life milestones that have shifted into the later years, such as school, work or family.
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Average homebuyer’s down payment decreases
According to a new Redfin analysis, the average homebuyer’s down payment is down from last year, falling to $64,000 in March 2026, down 1.5% year-over-year. The average down payment was 15%, down from 16.1% in 2025.
Down payment percentages were highest in three California metros: San Jose, San Francisco and Anaheim, all at 25% each.
Down payments were lowest in Virginia Beach at 2% and Detroit at 5%, which are both considered affordable markets.
The data in the report is from an analysis of county records across 40 of the most populous U.S. metropolitan areas. March 2026 is the most recent month for which data is available.
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Mortgage rates average 6.41% in May
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.41% in May 2026, up 7 basis points (bps) over April. Additionally, the average 15-year rate averaged 5.76% in May, up 7 bps from April and up 33 basis points since the end of February.
The 10-year Treasury yield, a key benchmark for long-term borrowing, averaged 4.47% last month, 16 bps higher than in April. Stronger-than-expected inflation pushed yields upward, with the 10-year yield reaching 4.6% during the month. Rising energy prices kept inflation high, as fuel oil prices increased 5.8% and gasoline prices rose 5.4%.
Persistently high inflation has also impacted household budgets, with the personal saving rate falling to 2.6% in April.
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Builder confidence increases in May
The National Association of Home Builders (NAHB) released the NAHB/Wells Fargo Housing Market Index (HMI) for May 2026. The HMI is based on a monthly survey of single-family builders who are asked to rate three specific conditions of the housing market: present sales of new single-family homes, expected sales of single-family homes for the next six months and traffic of prospective buyers of new single-family homes. Builder confidence in the market for newly built single-family homes increased three points to 37 in May.
The survey revealed that 32% of builders cut prices in May, down from 36% in April. However, the use of sale incentives was up 61% in May, a slight increase from 60% in April.
Key factors that can impact the HMI include interest rates, employment rates, material costs and inflationary pressures.
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Private residential construction spending increases in April
Private residential construction spending was up 0.8% in April 2026, following the monthly gain of 0.6% in March. Gains in single-family and home improvement spending largely drove this increase. Overall, total private residential construction spending was 1.7% higher than a year ago.
According to the latest construction spending data from the U.S. Census, single-family construction spending increased 1.4% in April, consistent with the steady builder confidence reflected in the National Association of Home Builders/Wells Fargo Housing Market Index.
Improvement spending also increased in April, rising 0.4% for the month and remaining a bright spot year over year, with spending up 7.5% from April 2025.
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Wellness is driving bathroom design trends
The era of minimalistic, sterile bathrooms is over and is being replaced with personality-driven and wellness-inspired designs. Increasing natural light flowing into the space has become the leading priority, followed closely by heated floors and biophilic design elements that strengthen the connection between indoor spaces and nature. Enhanced air quality is becoming another leading factor in bathroom design, once again inspired by wellness.
These rising design trends are replacing the all-grey and all-white interiors that were once dominating contemporary design.
“The cold, sterile material palettes are being replaced with warm, tactile and nature-integrated designs,” Alexzandra Aguirre of Phoenix Interior Design.
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B&D Interview: AIA EVP & CEO Carole Wedge, FAIA, NOMA, LEED AP
In the June issue of Builder and Developer, Wedge shares how AIA supports the future of residential design and architecture
Builder and Developer: The American Institute of Architects first established in 1857, how has the organization evolved to serve the contemporary needs of its members?
Carole Wedge: The American Institute of Architects, founded in 1857, has evolved from a traditional trade association into a modern member-focused organization. Today, it supports architects through advocacy, business tools, continuing education and targeted resources that address key industry priorities such as practice success, climate action and diversity.
AIA serves contemporary member needs by providing industry-standard contract documents and market research, advancing sustainability through climate leadership and zero-carbon design resources, promoting diversity and inclusion through research and dedicated programming and offering more personalized benefits for professionals at different career stages. AIA’s advocacy program champions policies that empower architects to do their best work—advocating for pro-architectural business incentives, smart public investment and stronger codes and standards. By partnering with members to build a unified collective voice, the program works to shape the built environment in meaningful ways. Government Affairs monitors the legislative landscape at every level, international, federal, state and local, ensuring that the profession’s interests are represented wherever critical decisions are made.
B&D: The AIA26 Conference on Architecture & Design is from June 10-13, what can attendees expect from this event?
CW: AIA26 is the place for AEC professionals to explore the latest tools, materials and innovations shaping the built environment. Attendees can expect a well-rounded mix of professional development, inspiration and industry connection at AIA26. The event features visionary keynote presenters and nationally recognized speakers, continuing education sessions with opportunities to earn HSW credits for the year and architect-led tours showcasing notable San Diego architecture and firms. Attendees will also have time to connect with peers, firm leaders and industry partners and explore a large expo featuring leading AEC brands.
B&D: How is AIA connecting with the rest of the building industry, such as contractors, to work better together?
CW: AIA is strengthening its connection with the broader building community by partnering with the Associated General Contractors of America (AGC) on a joint framework to improve architect-contractor collaboration. The effort is designed to help project teams work better together from the earliest stages of a project through completion.
The framework report, Toward Collaboration’s Future: Strengthening the Architect-Contractor Relationship, focuses on early alignment around shared goals, clearer communication protocols and earlier contractor involvement during design to improve constructability and cost certainty.
It also emphasizes clearly defined roles and responsibilities, proactive risk and change management and shared performance metrics for outcomes such as quality, safety and schedule. In addition, it encourages the use of digital coordination tools and promotes a culture of trust, transparency and mutual accountability.
Together, AIA and AGC are providing practical guidance that can help architects, contractors, owners and project teams reduce conflict, improve decisions and deliver stronger project outcomes.B&D: What makes you optimistic about the future of residential architecture & design?
CW: While I am optimistic about new technologies and materials becoming available to expand the design capabilities of architects, I’m most optimistic about the housing crisis in the U.S.
The housing crisis is no longer being treated as a niche issue: it’s being recognized as a shared, urgent challenge and that is driving real action. We’re seeing stronger collaboration across architects, policymakers, developers and civic leaders, which is exactly the kind of alignment needed to create meaningful change.
I’m also encouraged by the role architects are stepping into. Our profession brings both design expertise and public credibility to policy conversations and that opens the door to more practical, community-based solutions. There’s growing momentum around approaches that can expand housing supply in smart, livable ways: upzoning, gentle density, infill housing, more efficient permitting and better planning for housing at all income levels.AIA has been working to advance bipartisan legislation in Congress to address housing challenges through comprehensive reform. By supporting both the House-passed Housing for the 21st Century Act and the Senate-passed ROAD to Housing Act, AIA is urging action.
AIA convened leaders from over 20 nationally focused housing organizations at the AIA Housing Summit in late 2025. AIA hosted the summit to showcase best practices, embrace diverse perspectives and explore opportunities for collaborative legislative action that would help foster collaboration, gather insights and inform housing policies.
More people are acknowledging that access to housing is fundamental and that residential design must be equitable, resilient and responsive to how people actually live. When a crisis creates this level of urgency, innovation and cross-sector commitment, it gives me real optimism about the future of residential architecture and design.This is the full interview, read the print version.
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Designing for a Greater Purpose
A well-designed space speaks to our soul. It engages all of our senses. That belief has shaped my approach to design from the very beginning.
At Ueda Design Studio, we create homes that are modern, minimal and defined by clean lines, while also fostering a strong relationship with nature. I am drawn to spaces that feel modest yet beautiful, poetic yet comfortable, elegant yet playful. I find beauty in simplicity and in the richness of natural materials. Rather than trying to overpower nature, I prefer to work with it: to invite the view in, the sun, the shadows, the wind and to celebrate the changing seasons.
I am also fascinated by how a home unfolds through movement and contrast. Not every room needs to be large. In fact, varying the size, scale and sequence of spaces can make a home far more interesting and memorable. A narrow, darker hallway can heighten the feeling of entering a bright, expansive room with sweeping views. I also try to connect interior spaces to gardens and landscapes whenever possible. If there is no garden, I may borrow the view of a neighbor’s garden. If there is no nearby greenery at all, I look to the sky. Constraints are never just problems to solve; they are often where the design begins.
My understanding of architecture was deeply influenced by growing up in and around traditional Japanese houses. What I learned from those spaces was not simply a style, but a way of thinking. To me, Japanese architecture is something you feel rather than simply see. It is carefully composed to heighten awareness of nature, the beauty of materials and the subtle play of light and shadow, all within a clear functional balance. Spaces unfold gradually, almost like a journey and are experienced with both body and mind.
My path into architecture was not a straight one. I studied business in college and worked as a stock analyst in Tokyo in my twenties. Through my work and my travels, I encountered many kinds of architecture around the world. Over time, I became increasingly moved by the power of space and began to imagine what it would mean to create places like the ones that had stayed with me. Later, a series of life-changing events made me realize how deeply the built environment affects our daily lives, both physically and emotionally.
I also became more aware of how many spaces are designed primarily for healthy people, but not enough for those who are healing, aging, sick or otherwise vulnerable. That realization gave me a strong desire to design spaces that support people more fully; places that can make us feel happier in good times, help us heal and find peace in difficult ones. That purpose still guides my work today.
After working at Olson Kundig in Seattle, where I learned high-end residential design, I started my own practice in 2016. At the time, I wondered whether I could really succeed on my own as a Japanese female architect building a practice in the United States. However, contrary to those early concerns, the parts of my identity and experience that once felt like obstacles have become some of my greatest strengths. Being a Japanese architect in the U.S., having worked in another field before architecture and being a mother of three all shape the way I see design. They allow me to approach each project from multiple perspectives, with empathy, curiosity and a broader understanding of how people live.
Sustainability is also central to our practice. I believe every home should respect the environment, protect health, conserve energy and endure for generations. That requires both sound building science and timeless design principles. But sustainability is not only technical; it is also emotional. A truly sustainable home is one that people love, care for and want to preserve for years. I believe homes should serve the needs of today while also anticipating how life may change over the next ten, 20 or 50 years. A home should age with dignity, growing richer and more meaningful over time. That long view shapes both the way we design and the materials we choose.
I am also passionate about remodeling because it requires understanding an existing structure, uncovering its character and weaving the old and the new into a coherent whole. It can be more challenging than new construction, but also deeply rewarding.
At a time when so many older homes are demolished and replaced by buildings with little character, thoughtful remodeling feels especially important. It saves resources, reduces waste and honors the craftsmanship and stories already embedded in a place. That is also an essential part of residential architecture.
Nahoko Ueda, AIA, is the Principal of Ueda Design Studio. She can be reached at nahoko@uedads.com
This column is featured in our June issue of Builder and Developer. Read the print version.
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Blue Heron Redefines Building in Vegas
Tyler Jones founded Blue Heron with a vision to redefine luxury living in the desert, recognizing an opportunity to move beyond traditional homebuilding. He created a design-driven company rooted in modern architecture, environmental responsiveness and experiential living. The idea was to create a homebuilding company centered around innovation, craftsmanship and deep connection to the Las Vegas landscape.
Blue Heron’s building philosophy is rooted in what the company refers to as “Vegas Modern.” This approach is grounded in designs that withstand the harsh desert climate, prioritize wellness and sustainability, while ensuring each home feels modern and in touch with the luxurious charm of Las Vegas.
“Our design philosophy has always centered on the idea that the spaces we inhibit should actively support how we want to live, including physically, mentally and over the long term,” said Jones. “At Blue Heron, that means integrating architecture, technology and environment in a way that feels effortless and deeply intentional. We’re not just designing homes, but creating living ecosystems that prioritize air, water, light and human performance.”
The builder’s design philosophy is evident in the Priva project, located in the MacDonald Highlands region of Henderson, Nev.
A Challenging Climate
Blue Heron seamlessly integrates the indoor and outdoor environments, enhancing wellness while bringing natural beauty to the forefront of the Priva project. Rather than shy away from construction in a harsh climate, the builder uses biophilic design so the project can withstand extreme heat while still feeling luxurious.
“We’ve embraced technology, advanced building systems and sustainability standards to meet the demands of a more informed and environmentally conscious buyer,” said Gonzalo Romero, Chief Design Officer at Blue Heron.
The builder approached the project’s design as a direct response to both environmental forces and human experience. The home’s architecture has layered planes and strategic overhangs to mitigate solar gain, while expansive glazing is carefully positioned to capture views without compromising performance. The company also installed advanced HVAC systems and smart home technology to optimize energy performance. The home’s seamless indoor-outdoor design reduces reliance on artificial lighting and encourages natural ventilation throughout. All of these strategies showcase Blue Heron’s commitment to sustainable luxury.
“The goal is always to create a home that feels open and connected, yet remains comfortable year-round in a desert climate,” said Romero.
Building with Precision
Development on Priva began in the early design phase with extensive site analysis and planning, followed by construction throughout 2024. Blue Heron completed the home in October 2025. The project’s topography allows architecture to actively engage with the landscape. The home is positioned along a ridge to create a cohesive, elevated streetscape of Las Vegas while maintaining individuality. Designing on such a prominent ridge line required careful precision from the in-house architectural and design teams. The project’s location was also the primary challenge; balancing expansive openness while adhering to environmental performance in Nevada required meticulous planning. Large glass openings had to be carefully engineered to maintain both comfort and efficiency. The builder designed the 8,800 square-foot home with a strong emphasis on flow and energy to create a sense of harmony within the project. Priva’s exterior is defined by a composition of intersecting planes that create depth, shadow and movement through the day, producing a dynamic facade that evolves with the sun.
Designing for Luxurious Lifestyle
Luxury and Las Vegas go hand-in-hand; a belief that Las Vegas native Jones founded Blue Heron on. That belief is embedded in Priva’s design. Romero described the project’s design as both bold and restrained; modern yet grounded through materiality and proportion. Floor-to-floor ceiling pocket glass doors dissolve the boundary between interior and exterior spaces. The project’s great room features doors that open to panoramic views and an infinity pool, bringing the elevated feel of a luxury resort without having to sacrifice the comfort of home. Priva enables effortless entertainment, complete with a wine room, media lounge, in-home gym and multiple gathering areas to inspire connection.
The dining area’s open design on the first floor embodies the same look as a luxurious, vacation penthouse, further elevating everyday living. Dual staircases connect the two stories for both functionality and enhanced movement. Romero described the large, circular driveway as “wealth-embracing,” reinforcing arrival and symbolism. That same wealth-embracing look is what defines the Priva project, bringing a luxurious flare to the Nevada desert.
“Priva represents a convergence of intention, performance and experience,” said Romero. “It’s about how architecture can shape the way people live, connect and feel within a space. This home is a clear expression of where the future of home is headed.”
Photo Credit: Blue Heron
By Taylor Moore. She is the Assistant Editor at Builder and Developer and can be reached at taylor@builder.media.
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Construction employment increases in 32 states
Construction employment rose in 32 states from April 2025 to April 2026, according to an analysis of new federal data released by the Associated General Contractors of America (AGC)on May 22, 2026. Texas added the most construction jobs, adding approximately 18,700 jobs, followed by North Carolina, Ohio, Louisiana, Illinois and Missouri. Louisiana had the largest percentage gain in the span of 12 months.
“It’s encouraging to see construction employment increasing in many parts of the country,” said Ken Simonson, the AGC’s chief economist.
In April 2026, Florida added the most construction jobs with 6,000, followed by Texas with 3,500, Massachusetts with 3,100, North Carolina with 2,700 and New Mexico with 2,600.
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Housing economist comments on core inflation report
The U.S. Bureau of Economic Analysis (BEA) released the April report for Personal Income and Outlays, outlining core inflation at 0.4% for the month and a 3.8%12-month inflation rate. This is an indication that on the next Fed decision on June 17, 2026 might continue March’s holding pattern.
The BEA data does not relay one singular outcome for the housing market with a varying landscape across the U.S.
“When inflation runs this hot, the Fed stays put and mortgage rates stay stuck in the mid-6s,” said Dr. Selma Hepp, Cotality‘s Chief Economist and regular contributor to Builder and Developer. “That freezes the national housing market in place. But a flat national number is hiding a lot behind the scenes. In fact, at a local level, many markets are hiding a complex landscape that is completely fractured from national numbers.”
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Mortgage rates average 6.51%
On May 21, 2026, Freddie Mac released the results of its Primary Mortgage Market Survey, showing the 30-year fixed-rate mortgage (FRM) averaged 6.51%. This is up from last week, when it averaged 6.36%. In May 2025, the 30-year FRM averaged 6.86%.
“The 30-year fixed-rate mortgage averaged 6.51% this week,” said Sam Khater, Freddie Mac’s Chief Economist. “As rates fluctuate, aspiring buyers should remember that by shopping around for the best mortgage rate and getting multiple quotes, they can potentially save thousands.”
The 15-year FRM averaged 5.85%, up from last week when it averaged 5.71%. A year ago at this time, the 15-year FRM averaged 6.01%.
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Construction sees life in custom homebuilding
The custom home market is not as heavily impacted by the interest rate cycle in comparison to other forms of homebuilding, making it a relative bright spot in residential construction. While overall single-family construction has been down 5% for the first four months of 2026, custom homebuilding is providing relief in the homebuilding.
According to the National Association of Home Builders’ (NAHB) analysis of Census data from the Quarterly Starts and Completions by Purpose and Design survey, there were 36,000 total custom building starts during the first quarter of 2026. This is up 3% relative to the first quarter of 2025.
Currently, the market share of custom builds, based on a one-year moving average, is 20% of total single-family starts.
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NAHB strives to tackle workforce gaps in housing
The National Association of Home Builders’ (NAHB) state and local teams met with mayors, city leaders, planners and builders to address workforce development challenges as part of the America’s Housing Comeback discussion series spearheaded by the National League of Cities and the American Planning Association. The discussion allowed city leaders to hear directly from builders about the mounting challenges they face with recruitment and retention, not only for trades professionals but also for public sector staffing.
Ed Brady, CEO of the Home Builders Institute (HBI), and Emily Price, HBI senior vice president of development and partnership engagement, outlined how HBI programming strengthens city workforces.
Danushka Nanayakkara-Skillington, NAHB associate vice president of forecasting and analysis, reinforced the message by providing data and insights on how labor market conditions and demographic trends affect housing development.
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10 cities lead new home construction
Consumer Affairs analyzed data on new building permits and new-construction home sales across the 150 largest U.S. metros in early 2026. The data ranked areas based on both the number of new-build permits issued and the number of new homes sold, with each factor weighted equally. Based on the analysis, 10 cities are leading the charge in new home construction, with thousands of new housing permits issued and more than 15,000 newly constructed homes sold.
Four of the top cities in new home construction were in Texas, with Dallas holding the leading spot. The city had 11,327 new building permits issued and over 3,000 new construction homes sold.
Houston follows closely behind in second place, followed by New York, Phoenix, Atlanta and Los Angeles, respectively. Austin, Texas, ranked No. 7, followed by Washington, D.C., Charlotte, N.C. and San Antonio.
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These 5 design trends make a kitchen feel timeless
Regardless of fluctuating kitchen design trends, interior designers agree on one thing: Homeowners want a kitchen that feels timeless. From natural materials to layered lighting, five design trends can give the kitchen that desired look.
When it comes to designing a timeless kitchen, Diana Farberov, the founder of Artemuse Design, refers to historic homes and their finishes for guidance. She lists marble, quartzite, polished nickel and unlacquered brass as timeless elements to integrate into a kitchen design for an unchanging feel.
Luxury interior designer Krista Watterworth Alterman said that a kitchen is defined by its layered lighting, a mix of recessed, flush mount and pendant fixtures. Hardwood floors, classic tile and hidden functionality are additional features that enhance a kitchen’s design.
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HUD releases report on best homebuilding practices
The Department of Housing and Urban Development (HUD) released the State and Local Best Practices for Home Construction Report, a series of regulatory actions for state and local governments to increase efficiency and ease regulatory barriers to housing construction and affordability. The report provides a clear starting point for all state and local governments to begin or continue an active effort to remove unnecessary burdens to home construction. Best practices are sorted into three categories: Cut Home Construction Costs, Unlock Land for New Housing Supply and Accelerate Construction Timelines.
“HUD is encouraging our state and local partners to take inventory of their regulations and policies and make changes that will lower the cost to build and enable more efficient housing supply growth,” said HUD Secretary Scott Turner. “These best practices are an initial list of recommendations to facilitate growth while respecting communities’ unique needs. Adding efficiency to local building processes will result in more affordable homeownership opportunities for all Americans.”
Exclusive Feature
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B&D Interview: AIA EVP & CEO Carole Wedge, FAIA, NOMA, LEED AP
In the June issue of Builder and Developer, Wedge shares how AIA supports the future of residential design and architecture Builder and…
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“Chris’ proven leadership and deep understanding of the Utah market make him exceptionally well-suited to lead our homebuilding operations during a time of significant growth,” said Darlene Carter, CEO of Cole West. “Chris has already overseen the development of more than 1,400 homes throughout his tenure with Cole West. His expertise, vision, and commitment to our team and local community are invaluable as we continue to expand our presence throughout the state.”






























