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US: Housing Market Index
| Consensus | Consensus Range | Actual | Previous | |
| Index | 33 | 31.5 to 34 | 35 | 34 |
| M/M Change | 1 | -2 | ||
| M/M % Change | 2.9% | -5.6% |
Highlights
U.S. homebuilder sentiment rose more than expected this month, but market activity remains tepid – as elevated borrowing costs and the cloudy economic outlook continues to dampen demand, while that same uncertainty and higher prices weigh down builders’ sentiment.
Builder confidence in the market for newly built single-family homes was 35 in August, improving from 34 in July and 32 in August 2025. Nevertheless, the report cautions that market conditions remain challenging.
“While builder sentiment edged higher in August, builders continue to contend with high construction costs and broader economic uncertainty,” the NAHB said. “Rising gas and diesel prices are pushing up material costs, and spec home building remains weak as many prospective buyers stay on the sidelines.”
In a reflection of the K-shaped economic conditions, the NAHB noted that custom homebuilders continue to report stronger market conditions than spec builders, a sign of better conditions at the higher end of the market. “Smaller, less dense markets are also outperforming larger metropolitan areas, and smaller builders report relatively stronger conditions than larger builders,” it added.
Thirty-five percent of builders surveyed said they slashed prices in August. This compares with 37 percent in July and 35 percent in June.
The average price reduction was 6 percent in August, the same as in July. The use of sales incentives was 63 percent, unchanged from July. This is the 17th consecutive month this share has been 60 percent or higher.
Market Consensus Before Announcement
Forecasters see the HMI down to 33 in August from 34 in July as doldrums continue amid affordability trouble.
