High mortgage rates and economic uncertainty continued to keep potential home buyers on the sidelines and constrain new home sales in September.
Sales of newly built single-family homes decreased 0.6% in September to a seasonally adjusted annual rate of 676,000, following a downwardly revised August estimate, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales was 5.3% lower than a year earlier.
“Affordability remains a significant hurdle for prospective home buyers,” said Bill Owens, chairman of the National Association of Home Builders (NAHB) and a home builder and remodeler from Worthington, Ohio.
“Builders continue to offer incentives and adjust pricing to attract buyers, but elevated mortgage rates and high home prices are limiting the number of households that can afford to purchase a home.”
“The decline in new home sales is consistent with softer builder sentiment and highlights the continued sensitivity of housing demand to financing costs,” said Danushka Nanayakkara-Skillington, NAHB assistant vice president for forecasting and analysis. “Sustained improvements in mortgage rates and housing affordability would help maintain demand.”
A new home sale occurs when a sales contract is signed, or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the September reading of 676,000 units is the number of homes that would sell if this pace continued for the next 12 months.
New single-family home inventory in September fell to 476,000 units, down 1% from August, and down 2.3% compared to a year ago. This represents an elevated 8.4 months’ supply at the current building pace. Completed, ready-to-occupy inventory consisted of 111,000 homes in September.
The median new home sales price in September increased 3.9% from August to $400,400 but was down 3.9% from a year ago.
Regionally, on a year-to-date basis, new home sales were down 0.5% in the Midwest, 1.3% in the South and 9.2% in the West. New home sales were up 2.3% in the Northeast.
Single-family housing starts declined in September as builders faced higher financing and building material costs and ongoing labor shortages.
Overall housing starts decreased 5.2% in September to a seasonally adjusted annual rate of 1.22
million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
The September reading of 1.22 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts decreased 4.6% to an 859,000 seasonally adjusted annual rate and are up 2.6% compared to September 2025. The multifamily sector, which includes apartment buildings and condos, decreased 6.7% to an annualized 362,000 pace and are down 24.9% compared to September 2025.
“Housing starts declined in September as high mortgage rates, persistent affordability challenges and rising construction costs held back home building,” said Bill Owens, chairman of the National Association of Home Builders (NAHB) and a home builder and remodeler from Worthington, Ohio.
“High land, labor and construction costs are eroding builder confidence. A sustained increase in home building is key to long-term affordability, but near-term construction depends on mortgage rates, financing conditions and efforts to ease regulatory barriers.”
“Declining housing starts reflect the high borrowing costs and affordability challenges builders face, consistent with our recent builder surveys,” said Danushka Nanayakkara-Skillington, NAHB’s assistant vice president for forecasting and analysis. “September’s single-family starts data align with our forecast of lower production in 2026, with further declines expected in 2027 as rates stay elevated and material costs rise.”
On a regional and year-to-date basis, combined single-family and multifamily starts were 8.3% higher in the Northeast, 2% lower in the Midwest, 0.3% lower in the South and 6.3% lower in the West.
Overall permits decreased 0.2% to a 1.40-million-unit annualized rate in September. Single-family permits decreased 4% to an 845,000-unit rate and are down 4.8% compared to September 2025. Multifamily permits increased 6.1% to an annualized 555,000 pace and are down 0.2% compared to September 2025.
Looking at regional permit data on a year-to-date basis, permits were 10.6% higher in the Northeast, 2.2% higher in the Midwest and 3.2% lower in the South. The West saw no change.
PRESIDENT'S MESSAGE
Parade of Home Almost Here!
LYDIA MLOUHI
2026 EPAB PRESIDENT
The excitement is building as we prepare for the 2026 EPAB Parade of Homes! Our eight participating builders—Crown Heritage Homes, Cullers Homes, Hakes Bros, ICON Homes, MA Builders & Design, Pacifica Homes, Pointe Homes, and Winton Homes—are working hard to put the finishing touches on their homes, and I am thrilled to share that they are looking beautiful. Their creativity and craftsmanship reflect the talent and commitment that make El Paso’s homebuilding industry so special.
As EPAB President, I am proud of the work our builders and associate members are putting into this event. The Parade of Homes is more than an opportunity to tour stunning new homes; it is an investment in our industry and the businesses that support it.
Why does the Parade of Homes matter to our members?
- Increased exposure: Showcase your business, products, and services to potential homebuyers and industry professionals.
- New business opportunities: Connect with consumers and build relationships that can lead to future projects, referrals, and sales.
- Stronger partnerships: Bring builders, suppliers, lenders, realtors, and other professionals together to strengthen our industry.
- Community growth: Highlight the quality of new-home construction in El Paso and inspire future homeowners.
- Member success: Promote the businesses and people who help our association and local homebuilding industry thrive.
I encourage everyone in our community to come out, explore these incredible homes, and support the builders who make this event possible. For our members, this is a chance to celebrate our collective work and demonstrate the value of building together.
I look forward to seeing you there. Together, we are building more than homes—we are building opportunity, relationships, and a stronger El Paso!
Mark your calendars! The 2026 Parade of Homes runs November 7–22. Hours are Monday through Friday, 3–7 p.m., and Saturday and Sunday, 11 a.m.–7 p.m. Special Veteran’s Day hours on November 11 will be 1–7 p.m. Visit www.ElPasoParadeofHomes.com for more information.
EXECUTIVE MESSAGE
EDGAR GARCIA
2026 ACTING EXECUTIVE OFFICER
On Thursday, October 22, 2026, the El Paso Association of Builders (EPAB) hosted its first-ever BBQ Plate Fundraiser “Harvest for Success” in support of HomePAC, and I am proud to say it was a wonderful example of what our building community can accomplish when we come together for a common cause.
As the one behind the smoker, I had the pleasure of preparing the BBQ myself, and it was great to see all who came out to support this initiative by purchasing plates. Every order represented more than a great meal; it was a contribution toward supporting HomePAC and its efforts to advocate for the homebuilding industry and the issues that matter to our members.
Of course, an event like this would not have been possible without the incredible volunteers who gave their time and energy to make it a success. A special shoutout to Lety and Ericka for serving plates; Lydia, Natalie, and Juanita for delivering orders; and Lety and Lisa for helping us tackle cleanup and Ceci for helping coordinate. A big thank-you also goes to EPAB Secretary Anthony Murillo and Ericka Vega with Millennial Homes who helped cook and transform our conference room with festive décor.
As our first year hosting this fundraiser, the support we received exceeded what we could have accomplished alone. We are grateful to everyone who purchased a plate, volunteered, or helped spread the word.
We hope this fundraiser becomes an annual EPAB tradition, with turnout continuing to grow each year. Thank you for showing up, supporting HomePAC, and reminding us that our association is strongest when we work together!
President Issues Order to Lower Housing Costs
President Trump on Oct. 22 signed an executive order to lower single-family and mortgage costs, and the Treasury Department released new institutional investor rules.
“The president’s executive order will help reduce single-family housing and mortgage costs,” said NAHB Chairman Bill Owens. “We urge the administration to continue its efforts to reduce regulatory burdens to make housing more affordable for all Americans.”
A fact sheet released by the White House states the executive order instructs:
The Federal Housing Finance Agency (FHFA) director to launch a pilot program that proactively ends mortgage insurance premiums for borrowers who meet equity requirements based on current market values. The White House says this will remove a major monthly expense for eligible Americans nationwide.
The FHFA director to make the agency’s title insurance waiver pilot permanent and expand it to more borrowers, offering cheaper alternatives to title insurance that reduce refinancing closing costs and monthly homeownership expenses.
The agriculture and veterans affairs secretaries to reduce interest rates on single-family home loans issued by their departments.
The executive order also creates the Task Force on Manufactured Housing Innovation, co-chaired by the secretary of Housing and Urban Development and the FHFA director. The task force will promote modern manufacturing methods to improve quality and reduce construction costs for factory-built housing eligible for federal housing programs.
NAHB will work with relevant federal agencies to implement the executive order.
Treasury Releases Institutional Investor Rules
Separately, the Treasury Department proposed regulations to implement restrictions in the 21st Century ROAD to Housing Act on large institutional investors’ purchases of single-family homes
Starting Jan. 7, 2027, large institutional investors generally may not buy or contract to buy single-family homes unless the transaction qualifies as an “excepted purchase” under the 21st Century ROAD to Housing Act.
The law’s definition of a large institutional investor considers, among other factors, whether an entity is in the business of investing in, owning, renting, managing, or holding single-family homes and directly or indirectly controls investments in at least 350 such homes.
The 21st Century ROAD to Housing Act allows several types of excepted purchases, including those under build-to-rent programs, renovate-to-rent programs, homeownership programs, and programs to boost homeownership. The proposed rule once finalized would set the requirements for a purchase to qualify.
The public has until Nov. 23, 2026, to respond to the Treasury’s proposed rule. NAHB will be submitting comments.
Senate Introduces Landmark Permitting Reform Bill
Following the midterm elections, the Senate is expected to consider major NAHB-backed permitting reform legislation that would lower development costs, increase housing supply and make homeownership more attainable.
The Bipartisan American Affordability and Jobs Act (BAAJA) was drafted by a bipartisan group of Senate committee leaders — Shelley Moore Capito (R-W.V.), Sheldon Whitehouse (D-R.I.), Mike Lee (R-Utah) and Martin Heinrich (D-N.M.) — reflecting broad recognition that slow, unpredictable federal reviews raise costs and delay projects nationwide.
The bill would reduce land development costs and delays, resulting in more affordable lots and faster, less expensive federal permits. For multifamily builders, it would also improve access to federal housing finance programs and reduce the costs and delays of environmental reviews for Department of Housing and urban Development loans or Community Development Block Grant funding.
NAHB members can help advance this vital bill by calling their senators at 202-224-3121 and urging them to support BAAJA, the Senate’s bipartisan permitting reform legislation.
