US Homebuilder Sentiment Remains Subdued Amid Affordability Challenges

High construction costs and elevated home prices keep prospective buyers on the sidelines

Published on Feb. 18, 2026

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U.S. homebuilder sentiment deteriorated in February, weighed down by persistently high land and construction costs as well as still-elevated house prices relative to incomes that are keeping prospective buyers on the sidelines, according to a survey by the National Association of Home Builders (NAHB) and Wells Fargo.

Why it matters

The continued decline in homebuilder confidence reflects ongoing challenges in the U.S. housing market, including affordability issues driven by high construction costs and home prices that remain out of reach for many potential buyers. This could impact new home construction and sales, with broader implications for the overall economy.

The details

The NAHB/Wells Fargo Housing Market index eased one point to 36 in February, remaining below the 50 break-even point for 22 straight months. Economists had forecast the index climbing to 38. Builders cited persistently high land and construction costs, as well as elevated home prices relative to incomes, as factors keeping prospective buyers on the sidelines. The share of builders reporting cutting prices fell to a nine-month low of 36%, but the average price reduction remained at 6%. The share using incentives was unchanged at 65%, marking the 11th consecutive month this share has exceeded 60%.

  • The NAHB/Wells Fargo Housing Market index was released on February 17, 2026.

The players

National Association of Home Builders (NAHB)

A trade association that represents the home building industry in the United States.

Wells Fargo

A major American multinational financial services company that co-sponsors the NAHB/Wells Fargo Housing Market index.

Buddy Hughes

The current chairman of the NAHB.

Robert Dietz

The chief economist of the NAHB.

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What they’re saying

“Builders reduced their expectations for future sales as buyers report affordability challenges, which is contributing to declining consumer confidence for the overall economy.”

— Buddy Hughes, NAHB Chairman (Reuters)

“The solution for the housing market is the enactment of policies that will bend the construction cost curve and enable additional supply of attainable housing.”

— Robert Dietz, NAHB Chief Economist (Reuters)

The takeaway

The continued decline in homebuilder confidence reflects the ongoing challenges of affordability in the U.S. housing market, driven by high construction costs and home prices that remain out of reach for many potential buyers. Addressing these issues through policy changes could help increase the supply of attainable housing and improve the overall health of the housing market.