Market Research

Analysis and trends impacting construction, housing and development markets.

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  • Mortgage rates decrease to 6.48%

    Mortgage rates decrease to 6.48%

    On June 4, 2026, Freddie Mac announced that the 30-year fixed-rate mortgage (FRM) averaged 6.48%, according to its Primary Mortgage Market Survey. The FRM decreased from the week before, when it averaged 6.53%. A year ago at this time, the 30-year FRM averaged 6.85%.

    “The 30-year fixed-rate mortgage decreased to 6.48% this week,” said Sam Khater, Freddie Mac’s Chief Economist. “With mortgage rates in the mid-6% range and income growth outpacing home price growth, housing affordability is marginally improving.”

    The 15-year FRM averaged 5.79%, down from the week prior when it averaged 5.87%. A year ago at this time, the 15-year FRM averaged 5.99%.

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  • Mortgage rates average 6.41% in May

    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

    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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  • 10 cities lead new home construction

    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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  • HUD releases report on best homebuilding practices

    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.”

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  • Builder sentiment reports steady increase in May

    Builder sentiment reports steady increase in May

    The National Association of Home Builders’ (NAHB) Wells Fargo Housing Market Index (HMI) of Builder sentiment reported a modest gain in May, bouncing back after April’s decrease. The HMI posted a 37 for newly built single-family homes.

    NAHB cites the 21st Century ROAD to Housing Act could settle builders’ concerns while increasing housing supply.

    “The housing market remains soft as higher mortgage rates, rising gas prices and economic uncertainty related to the war in Iran continue to dampen buyer demand,” said NAHB Chairman Bill Owens. “However, efforts in the House to modify the 21st Century ROAD to Housing Act could increase the nation’s housing supply and help ease builder concerns.”

    Regionally, the Builder sentiment in Midwest registered a slight, one-point gain to 43 and the Northeast followed with a one point increase to 42. The South reported no change at 35, while the West dipped one point to 28.

    “Recent increases for long-term interest rates will continue to hold back home buyer demand,” said NAHB Chief Economist Robert Dietz. “Although some regional markets, including parts of the Midwest, are showing relative strength, the housing market continues to face significant affordability challenges.”

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  • Q1 2026 Homebuilding Permit Overview

    Q1 2026 Homebuilding Permit Overview

    Over the first three months of 2026, there were 214,655 permits issued nationwide to construct new single-family homes. This was down 7.6% from the first quarter of 2025. However, multifamily permits grew 7.1% to 121,404 total units over the first quarter of the year.

    At a state level, 12 states recorded year-over-year increases in single-family permits in March, with gains ranging from 18.6% in Alabama to 0.2% in Minnesota. Ten states issued the highest number of single-family permits, which accounted for 63.7% of all single-family permits issued nationwide. Texas led the country with 35,231 single-family home permits issued at the end of Q1 2026.

    Elevated financing costs, ongoing affordability challenges and softer builder sentiment continued to weigh on single-family construction activity, while multifamily permitting remained supported by demand for rental housing.

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  • Incentives are driving potential buyers

    Incentives are driving potential buyers

    Two of the country’s largest homebuilders, D.R. Horton and PulteGroup are investing in incentives for buyers. Mortgage rate buydowns, covering closing costs and overall price cuts can help close the sale for potential buyers. Both builders saw a jump in orders in Q1 of 2026, 11% for D.R. Horton and 3% for PulteGroup.

    However getting these buyers to the door are costing the builders in earnings results. Net income attributable to D.R. Horton for its second fiscal quarter decreased 20%. While PulteGroup reported its home sale gross margin was 24.4%, compared with prior year gross margin of 27.5%. However, neither are planning on cutting these incentives soon.

    “New-home demand remains impacted by affordability constraints and cautious consumer sentiment, said D.R. Horton CEO Paul Romanowski. “Our sales incentives increased during the second quarter, and we expect incentives to remain elevated for the rest of the year, with the level dependent on demand, mortgage interest rates, and other market conditions.”

    “Our ability to offer low fixed-rate mortgages and other incentives is certainly helping solve the affordability riddle for some,” said PulteGroup CEO Ryan Marshall. “But this comes at a price, as incentives in the quarter reached 10.9% of gross sales price.”

    The use of these incentives may draw some short term headwinds, but they keep builder momentum in the market.

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  • Pending home sales pick up in March

    Pending home sales pick up in March

    Pending home sales picked up 1.5% in March 2026 despite mortgage rates varying throughout the month, suggesting that rising borrowing costs may have pushed homebuyers to act while the housing market conditions showed signs of improvement. While contract signings were down 1.1% year-over-year, the monthly gain points to underlying demand going into the spring buying season. Rates rose from around 6.11% in mid-March to 6.38% by month’s end.

    The Realtor.com® March 2026 Housing Trends Report showed pending listings increased 3.9% year-over-year, the third consecutive month of annual gains, while new listings surged 21.2% from February to 439,000, exceeding the typical seasonal jump and giving buyers the most fresh inventory to browse in several years.

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  • Pending home sales pick up in March

    Pending home sales pick up in March

    Pending home sales picked up 1.5% in March 2026 despite mortgage rates varying throughout the month, suggesting that rising borrowing costs may have pushed homebuyers to act while the housing market conditions showed signs of improvement. While contract signings were down 1.1% year-over-year, the monthly gain points to underlying demand going into the spring buying season. Rates rose from around 6.11% in mid-March to 6.38% by month’s end.

    The Realtor.com® March 2026 Housing Trends Report showed pending listings increased 3.9% year-over-year, the third consecutive month of annual gains, while new listings surged 21.2% from February to 439,000, exceeding the typical seasonal jump and giving buyers the most fresh inventory to browse in several years.

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  • Single-family housing starts surge in March

    Single-family housing starts surge in March

    U.S. single-family homebuilding increased to a 13-month high in March. According to the Commerce Department’s Census Bureau, single-family housing starts, which account for ​the bulk of homebuilding, surged 9.7% to a seasonally adjusted annual rate of ‌1.032 million units, the highest level since February 2025.

    Single-family housing starts increased to a pace of 941,000 units in February from 898,000 units in January. They rose 8.9% year-on-year in March. Overall housing starts vaulted 10.8% to a pace of 1.502 million units and increased 10.8% year-on-year in March.

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  • NAR releases new homebuyer market data

    NAR releases new homebuyer market data

    According to newly released data from the National Association of Realtors (NAR), adults ages 61 to 79, otherwise known as the baby boomers, accounted for 42% of all homebuyers and 55% of all sellers over the past year. This generation overtook millennials in 2025 and maintains a firm grip on the housing market, relying on housing wealth accrued over decades to bypass the high prices, which challenge younger, potential homebuyers.

    “The housing market remains sharply divided between homeowners with equity and first-time buyers trying to break in,” said Jessica Lautz, NAR’s deputy chief economist, in the report.

    As a result of these market dynamics, the share of first-time buyers among all homebuyers decreased to 21% over the last year, the lowest level since NAR began tracking the metric in 1981. Millennials, ages 27 to 45, who historically make up the bulk of first-time buyers, saw their overall buyer share drop from 29% to 26%.

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  • More interest in construction trades among young adults

    More interest in construction trades among young adults

    A new survey from the National Association of Homebuilders (NAHB) reported a positive attitude amongst young adults, ages 18 to 25, towards the construction trades. In a positive development for the home building industry, the share interested in a career in the construction trades doubled from 3% in 2016 to 6% in 2026.

    Closing the housing deficit will necessarily entail recruiting younger workers willing to start a career in the construction trades. While most young adults know the field in which they want, or currently have, a career, certainty about career choice is waning. In 2016, 74% knew the field they wanted to work in. In 2026, that share is down to 65%. The drop is likely associated with broader economic uncertainty and changing labor market dynamics. However, NAHB’s survey revealed an improved interest in careers in residential construction.

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  • Housing Affordability Reaches Best Level Since January 2022
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    Housing Affordability Reaches Best Level Since January 2022

    Housing affordability began the year on its strongest footing since August 2022. In January 2026, the First American Data & Analytics Real House Price Index (RHPI) showed housing affordability improved nearly 11% compared with 2025. The improvement in affordability reflects a favorable combination of factors: Mortgage rates were 0.9 percentage points lower than a year ago, nominal house price growth nationally slowed to 0.6% and household income increased by 3.1%.

    While affordability remains more than 60& below its pre-pandemic five-year average, the recent progress offers a meaningful reprieve for prospective homebuyers. However, the strength of affordability gains varies across markets. For example, Cape Coral, Fla., stands out as the most improved among the top 100 markets, with affordability up more than 17% year-over-year.

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  • An Overview of the Homeowner Market
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    An Overview of the Homeowner Market

    A Redfin analysis of U.S. Census data from 2024, the most recent year for which data is available, broke down the share of three-bedroom-plus homes owned and occupied by each generation, by household type and size. According to the analysis, baby boomers living in one- to two-adult households own 28% of large homes in the U.S. By comparison, millennials with children living at home own 16% of those houses, barely more than half as much. Generation Z parents own less than 1% of the nation’s large homes.

    Millennials are the largest generation of parents in the U.S., and are also the largest generation in the nation, yet they own a relatively small share of family-sized housing. This dynamic can limit mobility for younger families, many of whom face both inventory and affordability challenges when trying to upgrade to bigger homes.

    “Younger buyers are looking to move into single-family homes in specific neighborhoods, those with a family-friendly vibe and highly rated schools,” said Brenda Beiser, a Redfin Premier agent in Philadelphia. “The problem is, younger families have a hard time finding those homes because the older people living in them can’t find anywhere they want to move to.”

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  • Most homebuying Americans are not discouraged by Iran conflict

    Most homebuying Americans are not discouraged by Iran conflict

    In a recent survey from Redfin, 56% of respondents indicated the Iran war has no impact on their plans to make a major purchase. Economists say that this conflict has similar minimal repercussions on major purchasing activity as the federal government shutdown in October.

    In their report, even in areas with a concentrated military conversation, concerns of the Iran conflict rarely comes up between agents and buyers. Despite concerns of rising oil prices and mortgage rates, more Americans are concerned about continuing headwinds of tariffs and the job market. In total only 7% are cancelling plans to make a major purchase (which includes both houses and cars), while 18% of respondents are delaying the decision.

    “But as of the first week of March, most Americans were undeterred in plans to buy something costly like a home or car,” said Dana Anderson at Redfin.

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  • Research shows architects seek building innovation influence

    Research shows architects seek building innovation influence

    On Feb. 25, 2026, the American Institute of Architects (AIA), in collaboration with Deltek and ConstructConnect, published the latest Architect’s Journey to Specification report, exploring how architects make specification decisions and collaborate with building product manufacturers. 

    Innovation & Collaboration in the Architect’s Journey to Specification, provides comprehensive analysis of three key areas; how architects engage with manufacturers, adopt innovative technologies and integrate sustainability into their design processes. 

    “By understanding these trends, the profession can strengthen collaboration, accelerate innovation, and advance sustainable practices that benefit clients and communities,” said AIA EVP/Chief Executive Officer Carole Wedge, FAIA. 

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  • HOA fee rates climb in homes for sale

    HOA fee rates climb in homes for sale

    According to the recent Homeowners Association Report from Realtor.com®, homeowners associations (HOAs) continued their steady growth across the U.S. housing market in 2025, with nearly 44% of homes for sale now subject to a monthly HOA fee. That rate has climbed from 34.3% in 2019 to 43.6% in 2025, underscoring how HOA fee obligations have become an increasingly common part of the total cost of buying a home.

    “HOAs are no longer confined to condos or brand-new developments,” said Joel Berner, senior economist at Realtor.com®. “The HOA-heavy construction boom earlier in the decade is now filtering into the existing-home market, and many of those newer communities were built with shared amenities, private roads and common spaces that require ongoing maintenance. At the same time, rising insurance costs, stricter building safety standards and higher labor and material prices are pushing associations to raise dues, making monthly HOA fees a much more common—and more costly—feature of homeownership than they were even a few years ago.”

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  • Gen Z home ownership ticked up in 2025

    Gen Z home ownership ticked up in 2025

    Generation Z’s (Gen Z), individuals born between 1997 and 2012, home ownership rate rose in 2025. According to a Redfin analysis of the Current Population Survey’s Annual Social and Economic Supplement, more than 27.1% of Gen Z individuals nationwide owned their homes, up from 26.1% in 2024. The Gen Z home ownership rate’s increase allows builders to tap into a fresh clientele.

    While affordability improved slightly in 2025 from the year before and supply rose, high costs and economic uncertainty continued to act as a roadblock for clients looking into homebuying. Widespread economic uncertainty also put a dent in homebuying plans for many young Americans, with tariffs and lack of job security delaying major purchases. 

    “The reality is that with housing costs still historically high, many young Americans are making compromises on location, size or timing to get their foot in the homeownership door and start building equity,” said Asad Khan, a senior economist at Redfin. “Gen Zers… are making small gains in homeownership because they’re eager to buy, they’re making sacrifices, and because affordability has improved a bit at the margins–not because homes suddenly became affordable. We expect the slow progress to continue this year, with housing costs dipping slightly while wages rise.” 

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  • Remodeling Market Sentiment Index Improves

    Remodeling Market Sentiment Index Improves

    The recently released the NAHB/Westlake Royal Remodeling Market Index (RMI) of the fourth quarter of 2025, indicated a stronger remodeler confidence. The survey result of 64, is four points stronger than Q3 2025. This result despite often softer holiday activity reflects the increased demand for remodeling services. The current market is being shifted by life events like the need for age-in-place improvements and higher home equity allowing for HELOCs to be tapped.

    The survey looks at both the Current Conditions Index and the Future Indicators Index. Both indexes take into account the size of the remodeler as well. They each boasted stronger results than Q3.

    “Both components increased quarter-over-quarter and are above the break-even point of 50,” said  Eric Lynch, CBE, economist in the survey research group for NAHB. “The component measuring the current rate at which leads and inquiries are coming in rose five points to 54 while the component measuring backlog of remodeling jobs added two points to 58.”

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  • Michigan homebuilding reports increased activity in 2025

    Michigan homebuilding reports increased activity in 2025

    A recent release from the Home Builders Association of Michigan (HBAM) announced that last year’s single-family home production grew by 4.7% in 2025. This was gauged by permit activity and exhibits that a total of 15,821 single-family  permits were issued. This is a welcome increase compared to 15,108 in 2024.

    This report also comes as the end of year data from the federal government is delayed due to the shutdown in the fall. The estimated average market value HBAM reported for new single-family homes built last year in the state was $475,024. This is a 6.5% increase in Michigan in 2025.

    ““The state housing authority has done a tremendous job in trying to expand these efforts, but more needs to be done,” said Bob Filka, CEO of the HBA of Michigan. “Streamlining regulatory processes and expanding the use of innovative financial mechanisms to support the production of more attainable housing in our state is critically important.” 

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  • Homeownership rate inches up
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    Homeownership rate inches up

    According to the Census’s Housing Vacancy Survey (HVS) of Q3 2025, the latest homeownership rate rose up to 65.3%. However this rate is not an anomaly from the third quarter 2024  rate (65.6 percent) nor the rate in the second quarter 2025 (65.0 percent).

    While this is a step in the right direction, there are still some signs that affordability issues persist. The homeowner vacancy rate of 1.2 percent was higher than the rate in the third quarter 2024 (1.0 percent) and higher than the rate in the second quarter 2025 (1.1 percent). Additionally, in the third quarter 2025, the median asking rent for vacant for rent units was $1,534. This rate of 65.3% is still significantly below the peak of 69.2% in 2004. Currently, it remains below the 25-year average rate of 66.3%.

    Compared to the previous year, homeownership rates increased in three age groups while decreasing in two. Homeownership for those under 35 saw a .5% uptick to 37.5%. This age group is particularly sensitive to the renting and entry level-market. With inventory and affordability concerns persisting throughout 2025, while not a sign of a complete market turnaround it exhibits some success. The 45-54 age range saw less of an increase at .3% but puts them at a strong 70%.  Homeownership rates for the ranges 35-44 and 65 years and over each declined 1.2 percentage points from a year ago.

    “The housing stock-based HVS revealed that the number of total households increased to 133.1 million in the third quarter of 2025 from 132.0 million a year ago,” said Na Zhao, Ph.D., Principal Economist at NAHB. “This increase was driven by both owner and renter household growth.”

    The fourth quarter 2025 data from the Census is scheduled for release on February 3, 2026.

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  • Starter-home sales rise

    Starter-home sales rise

    In October, starter-home sales posted a significant 4.9% year over year increase. This is the 14th consecutive month of increase, showing the market is allowing for new-buyers to get their foot in the door. The increase is also a major jump in comparison to other parts of the market, sales of mid-priced homes inched up 0.7% and high-priced home sales rose 0.8%. However the increase in sales is not contributing to a price increase. According to a Redfin analysis,  starter home prices only rose an estimated 2% year over year. The average price in October was $260,000. Notably this is the second slowest growth in the past decade.

    The minimal rise in price is likely due to an increased supply. Currently, inventory is at its highest October level since 2016. Major metro areas saw a large increase in starter homes sold year-over-year, this includes San Francisco (19.5%), Providence (6.3%) and Portland (12.9%).

    “The starter-home market is a double-edged sword right now. Conditions are improving, with more listings and steadier prices, but many buyers are only turning to this tier because they have been priced out of higher tiers,” said Redfin Head of Economic Research Chen Zhao. “That means sales at the low end of the market are relatively strong, but it also means that first-time buyers may find themselves competing with move-up or move-down buyers.”

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