CONSTRUCTION & REAL ESTATE FINANCE · SEPTEMBER 22, 2026
Builder Confidence Falls as Rates, Costs, and Lot Constraints Persist
The September NAHB/Wells Fargo Housing Market Index fell three points to 32; 38% of surveyed builders reported cutting prices and 66% reported using sales incentives.
What the September 16 survey reported
Source publication date: September 16, 2026. The National Association of Home Builders reported that its NAHB/Wells Fargo Housing Market Index fell three points to 32 in September. The current-sales component declined four points to 35, the six-month sales-expectations component fell six points to 37, and the measure of prospective-buyer traffic held at 23. In this index, a reading above 50 means more builders view conditions as good than poor.
- 01Down 3 points
- 0238% cut prices
- 0366% used incentives
Pricing and incentive use increased
NAHB reported that 38% of builders cut prices in September, up from 35% in August, while the average reported cut remained 6%. Sixty-six percent used sales incentives, up from 63% and the highest share since December. The survey also reported that 42% of builders rated current lot availability as poor and 38% rated it fair. These national survey results do not establish demand, costs, or pricing for a particular market or project.
Why the survey matters to construction underwriting
A lender or equity investor may test unit or lot absorption, net price after incentives, buyer qualification, cancellation, construction and land carry, labor and material costs, contingency, interest reserve, and completion timing. Incentives can support traffic while reducing realized margin or requiring cash earlier. Lot scarcity can preserve value in one submarket while slowing starts or raising basis in another, so the borrower's local evidence remains decisive.
Practical borrower takeaway
Refresh the monthly sales and construction schedule using current contracts, cancellations, traffic, incentive cost, net price, lot inventory, subcontractor bids, completion dates, and interest carry. Model slower absorption, additional concessions, cost overruns, and an extended exit, then show the equity and liquidity available to finish. Confirm advance conditions, presale requirements, interest reserve, contingency, guaranties, and extension options with the prospective lender before relying on proceeds.
Builders and development borrowers should update absorption, concessions, construction costs, contingency, and interest carry with project-specific evidence before sizing debt or equity.
Discuss a financing need →This independent summary is based on the cited source and is provided for general educational purposes only. Terms and program requirements may change.