In the September National Association of Home Builders (NAHB) /Wells Fargo Housing Market Index (HMI), builder confidence fell three points from August to 32.
This is the lowest recorded report since September 2025.
NAHB Chief Economist Robert Dietz noted that this is likely a continuation of headwinds facing the homebuilding industry: building materials costs rising, elevated mortgage rates and labor concerns.
With buyers more discerning, builders continue to offer incentives, up 3% from August. The HMI survey also reported that more builders cut prices than in August, but only by 1%.
Regionally, the Midwest remains the strongest market despite dropping one point to 44. The Northeast saw the greatest decline, from 44 to 38. The South and the West remained fairly stagnant, with the South falling one point (31) and the West gaining one (28).
With the Fed raising interest rates on Sept.16, 2026, builder buying power may also take a hit.
“The HMI shows builder confidence at its lowest level since September 2025, as tight lending conditions and elevated land, labor and construction costs persist,” said Dietz. “Notably, 42% of builders rated current lot availability as poor and 38% as fair.”
