Each month, the National Association of Home Builders surveys builders to gauge their confidence in the market for newly built, single-family homes. The resulting Housing Market Index is based on builders’ responses and scored on a scale where any number above 50 indicates more builders view conditions as good than poor. In February, the index fell one point to 36. Robert Dietz, NAHB’s chief economist, says affordability challenges are behind the drop. “Housing affordability remains an ongoing challenge at the start of 2026,” Dietz said. “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.” For prospective buyers, the news isn’t all bad. In fact, Dietz says easing inflation should continue to allow lower interest rates for mortgages and builder loans. Also, the survey found 65 percent of builders are using sales incentives to generate buyer interest, marking the 11th-consecutive month the share has exceeded 60 percent. (source)
