Builders Grow Cautious as Costs Climb
Higher material and energy costs are slowing momentum. In the South, including Florida, conditions held steady as incentives remain widely used.
WASHINGTON – Builder sentiment fell sharply in April, but conditions in the South, including Florida, held steady even as higher interest rates, rising material costs and broader economic uncertainty slowed momentum.
The National Association of Home Builders/Wells Fargo Housing Market Index dropped four points to 34, its lowest level since September 2025. Builders pointed to ongoing affordability challenges for buyers, along with uncertainty tied to global tensions and energy prices, both of which are making some shoppers more cautious.
“The year started with hopes for housing momentum growth, but risks with respect to the Iran war, energy costs, and declines for consumer confidence have slowed the market,” NAHB Chairman Bill Owens, a home builder and remodeler from Worthington, Ohio.
The NAHB said about 62% of builders said suppliers raised material prices due to increased costs for gas and diesel, while 70% said it has become harder to price homes amid uncertainty over material costs.
Builders are still leaning on incentives to move homes. About 36% reported cutting prices in April, with an average reduction of 5%, and 60% used sales incentives, extending a streak of elevated use to more than a year.
All three key measures in the index declined. Current sales conditions fell to 37, expected sales over the next six months dropped to 42, and buyer traffic slipped to 22, signaling softer demand overall.
Source: NAHB
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