U.S. Home-Builder Sentiment Inches Up Again

By Don Nico Forbes

Confidence among America's home builders increased in December, though sentiment remains in negative territory amid rising construction costs, economic uncertainty and affectability concerns among buyers. Here are the main takeaways from the National Association of Home Builders' latest report released Monday.

--The NAHB/Wells Fargo Housing Market Index, a gauge of builder confidence in the market for newly built single-family housing--was 39 in December, up from 38 in November. Economists surveyed by The Wall Street Journal expected a reading of 38.

--A reading below 50 means builder sentiment remains net negative.

--"Builders continue to face supply-side headwinds, as regulatory costs and material prices remain stubbornly high. Rising inventory also has increased competition for newly built homes," said NAHB Chief Economist Robert Dietz.

--40% of builders reported cutting prices in December, after a reading of 41% in November which marked a postpandemic high. The average price reduction was 5%, down from 6% in November, while the use of sales incentives hit another postpandemic high of 67%.

--The index gauging current sales conditions increased one point to 42, and that measuring future sales rose one point to 52. The gauge tracking traffic of prospective buyers was flat at 26.

--"In positive signs for the market, builders report that future sales expectations have been above the key breakeven level of 50 for the past three months and the recent easing of monetary policy should help builder loan conditions at the start of 2026," Dietz said.

Write to Don Nico Forbes at don.forbes@wsj.com

(END) Dow Jones Newswires

December 15, 2025 10:14 ET (15:14 GMT)