US Homebuilder Sentiment Remains Subdued Amid Affordability Challenges

Builders cite high costs and still-elevated home prices as factors weighing on buyer demand

Published on Feb. 19, 2026

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U.S. homebuilder sentiment deteriorated in February, remaining below the 50 break-even point for 22 straight months. Persistently high land and construction costs, as well as still-elevated house prices relative to incomes, 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 sentiment reflects broader challenges in the U.S. housing market, including affordability issues that are pricing out many potential buyers. This could have ripple effects on the broader economy, as housing is a key driver of economic growth.

The details

The NAHB/Wells Fargo Housing Market index eased one point to 36 in February, remaining below the 50 break-even point. Builders cited high land and construction costs, as well as still-elevated home prices relative to incomes, as factors weighing on buyer demand. While the share of builders reporting price cuts fell to a nine-month low, the average price reduction remained at 6%, and the share using incentives was unchanged at 65%.

  • The NAHB/Wells Fargo Housing Market index was released on February 17, 2026.
  • The index has remained below the 50 break-even point for 22 straight months.

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 U.S. financial services company that partners with the NAHB on the 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

“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

What’s next

The NAHB and policymakers will likely continue to monitor the housing market and explore ways to address the persistent affordability challenges, such as through policies aimed at reducing construction costs and increasing the supply of attainable housing.

The takeaway

The ongoing decline in homebuilder sentiment underscores the significant affordability challenges facing the U.S. housing market, which could have broader economic implications if not addressed through policy interventions and other measures to improve housing supply and accessibility.