Demand conditions among US homebuilders weakened in August 2026, with survey respondents reporting declines in sales, customer traffic and pricing compared with July, according to the BTIG/HomeSphere Homebuilder Survey.
The monthly survey collected responses from 59 small- and mid-sized tract and custom homebuilders across the United States.
In August, 19% of builders reported higher year-on-year sales, down from 27% in July and 35% in June. The August figure was the lowest since November 2023.
The proportion reporting lower year-on-year sales increased to 42%, also reaching its highest level since November 2023.
Customer Traffic Declines in August
Customer traffic also weakened during the month. Some 20% of respondents reported higher year-on-year traffic, down from 33% in July and the lowest reading since the beginning of 2026.
The proportion of builders reporting lower customer traffic increased to 37% from 23% in July.
Sales relative to builders’ expectations showed a similar change. The proportion reporting better-than-expected sales declined to 14% from the previous month, reaching its lowest level since December 2022.
Meanwhile, 44% of respondents reported worse-than-expected sales, compared with 29% in July.
Better-than-expected customer traffic was reported by 14% of builders, down from 31% in July. The proportion reporting worse-than-expected traffic increased to 34% from 29%.
More Builders Cut Prices and Increase Incentives
Pricing data showed that 30% of surveyed builders reduced some or all of their base prices in August, compared with 15% in July.
The proportion raising some, most or all base prices fell to 13% from 21%.
Builders also reported greater use of incentives. Some 36% increased incentives on some, most or all homes during August, up from 19% in July.
The proportion leaving incentives unchanged declined to 46% from 56% in the previous month.
According to the survey, most responding builders cited weak demand and affordability as factors affecting housing market conditions.