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Two-Story Foyer Share Edges Up in 2025 – Eye On Housing

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In 2025, around a quarter of new homes were built with a two-story foyer, slightly up from 2024, according to data obtained from the Census Bureau’s Survey of Construction (SOC) and tabulated by NAHB. Despite the increase, the market share of two-story foyers has generally trended downward since 2017, with most new single-family homes being built without a two-story foyer both nationally and regionally.

According to the Census, a two-story foyer is defined as the entranceway inside the front door of a house and has a ceiling that is at the level of the second-floor ceiling. In the United States, the share of new homes with two-story foyers slightly rose from 24.6% to 25.6% in 2025, the highest level since 2022, but remains below the levels recorded from 2017 to 2020. This feature is often considered energy-inefficient and is seen as undesirable by both builders and buyers. The declining trend is in line with NAHB’s What Home Buyer’s Really Want, in which recent and prospective buyers rated their preference for 18 specialty rooms. The study found that two-story entry foyers were one of the least desired specialty rooms, with 32% buyers likely to reject a potential home with this feature, and only 13% seeing it as an essential/must-have feature.

In 2025, the share of new homes with a two-story foyer was below 40% in all nine divisions, ranging from 15.1% in the Pacific to 35.8% in the Middle Atlantic. Compared to 2024, the share of two-story foyers declined in four of the nine divisions, including the East North Central, East South Central, West South Central and Mountain. The East South Central division reversed the notable increase seen in 2024, decreasing from 29.6% to 26.1%. Meanwhile, shares in both the East North Central and West South Central fell to their lowest levels since NAHB began tracking this data in 2017.

Meanwhile, shares of two-story foyers rose in the other five divisions. New England increased from 23.2% to 28.2%, the highest share since 2017. The West North Central rebounded from 21.5% to 26.2%, after declining in 2024. The Middle Atlantic continued its upward trend for the third consecutive year, rising from 35.3% to 35.8%. The Pacific rose from 12.8% to 15.1% but still had the lowest share among the nine divisions. The South Atlantic saw a modest increase, from 25.1% to 26.9%.

The share of two-story foyers also varies by home size, with smaller homes generally less likely to have a two-story foyer. In 2025, 65.5% of new homes with 5,000 square feet or more had a two-story foyer, the highest level since 2017. The share was 40.4% for3,000 to 4,999 square foot homes. For homes under 3,000 square feet, the share ranged from 9.9% to 24.5%.

By purpose of construction, owner-built homes had the highest share of two-story foyers at 34.7%, up from 25.5% in 2024 and the highest level since 2017. In contrast, contractor-built homes fell from a share of 31.7% in 2024 to 29.8% in 2025, the fourth consecutive decline and the lowest level since 2017. Built-for-rent homes had the lowest share at 6.5%, down from 9.9% in 2024.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Market Share of 5,000+ Sq. Ft. Homes Edges Higher in 2025 – Eye On Housing

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New homes with 5,000 square feet or more of living space posted an increase in market share last year. In 2025, 27,000 homes of this size were started, accounting for 2.9% of all new homes started. Both the number and market share of homes with 5,000 square feet or more increased from 2024, according to annual data from the Census Bureau’s Survey of Construction (SOC).

The number of homes started with more than 5,000 square feet increased from 24,000 in 2024 to 27,000 in 2025. The number peaked at 45,000 in 2006 before declining during the Great Recession to a low of 11,000 in 2009. Since 2013, the number has remained consistently above 20,000, reaching a recent peak of 33,000 in 2021.

Of the total number of new homes started in 2025, 2.9% had 5,000+ square feet or more of finished space, up from 2.3% in 2024. In 2015, the 5,000+ square foot share reached a record high of 3.9%.  Since then, it has fluctuated between 2.3% and 3.1%.

Tabulating the major characteristics among homes of 5,000 square feet or more started in 2025, 86% have a porch, 73% have a finished basement, 73% have four or more bathrooms, 68% have a patio, 66% have a three-or-more-car garage, 57% have five or more bedrooms, and 51% belong to a community association.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Single-Family AD&C Lending Edges Higher in Q1 – Eye On Housing

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Single-family construction lending rose marginally in the first quarter, according to data released by the Federal Deposit Insurance Corporation. The volume of loans outstanding was up 0.8% from the fourth quarter. This increase comes at a time when NAHB’s AD&C Financing Survey indicates a slight tightening in credit conditions in the first quarter. The total volume of outstanding AD&C loans, which includes both nonresidential and residential construction loans, fell for the ninth consecutive quarter.

In the first quarter of 2026, the total level of outstanding AD&C loans fell to $453.3 billion, down 0.6% from the fourth quarter. The quarterly decline was led by a drop in other real estate development loans, which declined 1.8% to $361.5 billion. Meanwhile, the volume of 1-4 family residential construction and land development loans rose to $91.8 billion in the first quarter, up 0.8% from a quarter earlier. The volume of 1-4 family residential was up 1.9% from last year. This marked the third straight quarter showing a year-over-year increase.

It is worth noting that the FDIC data represents only the stock of loans, not changes in the underlying flows, so it is an imperfect data source. Nonetheless, lending remains much reduced compared with years past. The current amount of existing 1-4 family residential AD&C loans now stands 56% lower than the peak level of residential construction lending of $204 billion reached during the first quarter of 2008. Alternative sources of financing, including equity partners, have supplemented this capital market in recent years.

Quality Metrics of Construction Loans

The volume of loans that are 30+ days past due or nonaccrual status rose in the first quarter, to $989.8 million. As a share of the total 1-4 family residential construction loan volume, this accounts for 1.1%.

Breaking this out further, the level of loans 30-89 days past due was $451.3 million, while the volume in nonaccrual status was $495.2 million. The nonaccrual loan volume fell from $522.1 million in the fourth quarter, and the 30-89 past due volume rose from $414.2 million.

Loans are classified as nonaccrual when one or more of the following conditions apply: the loan is 90 days or more past due on principal or interest (unless it is well-secured and in the process of collection); the bank no longer expects full repayment of principal and interest; or the borrower’s financial condition has significantly deteriorated, warranting cash-basis accounting.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Housing Affordability Edges Up in First Quarter but Challenges Persist – Eye On Housing

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While housing affordability remains out of reach for millions of Americans, particularly first-time and entry-level buyers, conditions have improved modestly in the last year, according to the latest data from the National Association of Home Builders (NAHB)/Wells Fargo Cost of Housing Index (CHI). The CHI results from the first quarter of 2026 show that a family earning the nation’s median income of $106,800 needed 32% of its income to cover the mortgage payment on a median-priced new home. Low-income families, defined as those earning only 50% of median income, would have to spend 65% of their earnings to pay for the same new home.

In the last year, the income share needed to buy a new home declined from 36% in the second quarter of 2025, to 35% in the third quarter, 34% in the fourth quarter, and to 32% in the first quarter of 2026. Although home buyers continue to grapple with elevated mortgage rates and economic uncertainty, these figures indicate a modest improvement in affordability.

The same trend holds true for existing homes. A typical family would have had to pay 37% of their income for a median-priced existing home in the second quarter of 2025, 36% in the third quarter, 34% in the fourth quarter, and 32% in the first quarter of 2026. A low-income family would have needed to pay 65% of their earnings to make the same mortgage payment on an existing home in the first three months of 2026.

The U.S. data for the percentage of earnings needed to purchase a new home in the first quarter is based on a national median new home price of $403,200 and median income of $106,800. The first quarter median new home price is down slightly from $405,300 in the fourth quarter of 2025. Meanwhile, the corresponding price for an existing home fell more sharply in the first quarter to $404,300 from $414,900 in the previous quarter. The average 30-year mortgage rate edged slightly lower from 6.32% in the fourth quarter to 6.20% in the first quarter.

CHI is also available for 175 metropolitan areas, calculating the percentage of a family’s income needed to make the mortgage payment on an existing home based on the local median home price and median income in those markets.

In seven out of 175 markets in the first quarter, the typical family is severely cost-burdened (must pay more than 50% of their income on a median-priced existing home). In 59 other markets, such families are cost-burdened (need to pay between 31% and 50%). There are 109 markets where the CHI is 30% of earnings or lower.

The Top 5 Severely Cost-Burdened Markets

San Jose-Sunnyvale-Santa Clara, Calif., was the most severely cost-burdened market in the CHI, where 79% of a typical family’s income is needed to make a mortgage payment on an existing home. This was followed by:

Urban Honolulu, Hawaii (68%)

San Diego-Chula Vista-Carlsbad, Calif. (65%)

San Francisco-Oakland-Fremont, Calif. (63%)

Naples-Marco Island, Fla. (58%)

Low-income families would have to pay between 115% and 158% of their income in all five of the above markets to cover a mortgage.

The Top 5 Least Cost-Burdened Markets

By contrast, Decatur, Ill., was the least cost-burdened markets on the CHI, where typical families needed to spend just 12% of their income to pay for a mortgage on an existing home. Rounding out the least burdened markets are:

Peoria, Ill. (15%)

Elmira, N.Y. (16%)

Springfield, Ill. (17%)

Davenport-Moline-Rock Island, Iowa-Ill. (18%)

Low-income families in these markets would have to pay between 25% and 37% of their income to cover the mortgage payment for a median-priced existing home.

Visit nahb.org/chi for tables and details.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Remodeling Market Sentiment Edges Down but Remains Positive in First Quarter – Eye On

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In the first quarter of 2026, the NAHB/Westlake Royal Remodeling Market Index (RMI) posted a reading of 62, down two points compared to the previous quarter. Despite this decline, the overall reading has been solidly in positive territory since Q1 2020.

Remodeler sentiment remained generally positive in the first quarter, even as many remodelers are still working to manage their customers’ cost expectations. Only a relatively small share report homeowners putting projects on hold due to economic and political uncertainty.

Ongoing positive remodeler sentiment is consistent with NAHB’s outlook, given an aging housing stock and the lock-in effect of elevated mortgage rates keeping owners in the homes longer. In the first quarter, remodelers reported 21% of their projects were associated with home improvements made shortly after a purchase, while only 4% were for homeowners’ projected to ready a home for sale.

The RMI is based on a survey that asks remodelers to rate various aspects of the residential remodeling market “good”, “fair” or “poor.” Responses from each question are converted to an index that lies on a scale from 0 to 100. An index number above 50 indicates a higher proportion of respondents view conditions as good rather than poor.

Current Conditions

The Remodeling Market Index (RMI) is an average of two major component indices: the Current Conditions Index and the Future Indicators Index. 

The Current Conditions Index is an average of three components: the current market for large remodeling projects ($50,000 or more), moderately-sized projects ($20,000 to $49,999), and small projects (under $20,000). In the first quarter of 2026, the Current Conditions Index averaged 70, edging down one point from the previous quarter. All three components remained well above 50 in positive territory. The component measuring small remodeling projects was the only one to experience a quarterly gain, inching up one point to 74. Both the moderate and large remodeling projects components were down two points to 69 and 67, respectively.

Future Indicators

The Future Indicators Index is an average of two components: the current rate at which leads and inquiries are coming in, and the current backlog of remodeling projects. 

In the first quarter of 2026, the Future Indicators Index averaged 54, down two points from the previous quarter. Both components decreased quarter-over-quarter but are above the break-even point of 50. The component measuring the current rate at which leads and inquiries are coming in edged down one point to 53, while the component measuring backlog of remodeling jobs dropped three points to 58.

For the full set of RMI tables, including regional indices and a complete history for each RMI component, please visit NAHB’s RMI web page.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Private Residential Construction Spending Edges Higher in December – Eye On Housing

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Private residential construction spending was up 1.5% for the last month of 2025. This modest gain was driven primarily by increased spending on home improvements and single-family construction. Despite this increase, total spending remained 1.3% lower than a year ago, reflecting the continued impact of housing affordability challenges facing the sector.

According to the latest construction spending data from the U.S. Census, single-family construction spending was up by 1.6% in December, consistent with the soft builder confidence reflected in the NAHB/Wells Fargo Housing Market Index (HMI). Compared to a year ago, single-family construction spending decreased 3.6%. Meanwhile, multifamily construction spending edged up 0.1% in December, marking a seventh consecutive month of modest gains. Compared to a year earlier, multifamily spending was 2.9% higher. Improvement spending (remodeling) rose 1.8% for the month but stayed flat relative to a year ago.

The NAHB construction spending index is shown in the graph below. The index illustrates how   spending on single-family construction has slowed since early 2024 under the pressure of elevated interest rates and concerns over building material tariffs. Multifamily construction spending growth has also slowed down after the peak in July 2023, with the index largely plateauing since late 2024. In contrast, improvement spending has been on an upward trend since the beginning of 2025.

Spending on private nonresidential construction was down 1.8% over a year ago. The annual private nonresidential spending decrease was primarily driven by a $26 billion drop in manufacturing construction spending, followed by a $2 billion decrease in healthcare construction spending.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Builder Sentiment Edges Lower on Affordability Concerns – Eye On Housing

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Builder confidence in the market for newly built single-family homes fell one point to 36 in February, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).

Persistent affordability challenges, including high housing price-to-income ratios and elevated land and construction costs, helped push builder confidence lower for the second straight month to start the year.

Housing affordability remains an ongoing challenge at the start of 2026. The solution for the housing market is the enactment of policies that will bend the construction cost curve and enable additional supply of attainable housing. On the positive side, easing inflation should continue to allow lower interest rates for mortgages and builder loans.

The latest HMI survey also revealed that 36% of builders cut prices in February, down from 40% in January. While this marks the lowest incidence of price-cutting since last May (34%), the average price reduction remains at 6%. The use of sales incentives was 65% in February, unchanged from January, and marking the 11th consecutive month this share has exceeded 60%.

While the majority of builders continue to deploy buyer incentives, including price cuts, many prospective buyers remain on the sidelines. Although demand for new construction has weakened, remodeling demand has remained solid given a lack of household mobility, per comments from builders in the HMI.

Derived from a monthly survey that NAHB has been conducting for more than 40 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

The HMI index gauging current sales conditions held steady at 41 from January to February, the index measuring future sales fell three points to 46 and the gauge charting traffic of prospective buyers fell two points to 22.

Looking at the three-month moving averages for regional HMI scores, the Northeast fell one point to 43, the Midwest held steady at 43, the South dropped one point to 35 and the West fell two points to 33. HMI tables can be found at nahb.org/hmi.

Editor’s Note: With the official 2026 release schedule for the Survey of Construction still unavailable from the U.S. Census Bureau, NAHB confirms the HMI for March 2026 will be released on March 16.  A schedule for the rest of the year will be available as soon as possible.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Private Residential Construction Spending Edges Higher in October on Home Improvements – Eye

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Private residential construction spending was up 1.3% in October, rebounding from a 1.4% decline in September 2025. This modest gain was primarily driven by increased spending on home improvements. Despite this increase, total spending remained 1.3% lower than a year ago, as the housing sector continues to navigate the economic uncertainty stemming from ongoing tariff concerns and elevated mortgage rates.

According to the latest U.S. Census construction spending data, single-family construction spending declined 1.3% in October, consistent with the soft builder confidence reflected in the NAHB/Wells Fargo Housing Market Index (HMI). Compared to a year ago, single-family construction spending decreased by 6.1%. Meanwhile, multifamily construction spending edged down 0.2% in October after four consecutive months of modest gains. Compared to a year earlier, multifamily spending was still down 2.8%. Improvement spending (remodeling) rose 4.5% for the month and was up 4.4% compared to a year ago.

The NAHB construction spending index is shown in the graph below. The index illustrates how   spending on single-family construction has slowed since early 2024 under the pressure of elevated interest rates and concerns over building material tariffs. Multifamily construction spending growth has also slowed down after the peak in July 2023, with the index largely plateauing since late 2024. In contrast, improvement spending has been on an upward trend since the beginning of 2025.

Spending on private nonresidential construction was down 2.6% over a year ago. The annual private nonresidential spending decrease was primarily driven by a $23 billion drop in manufacturing construction spending, followed by a $3.8 billion decrease in commercial construction spending.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Share of New Homes with Decks Edges Lower – Eye On Housing

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The share of new homes with decks edged down from 17.6% in 2023 to a new all-time low of 17.4% in 2024, according to NAHB tabulation of data from the HUD/Census Bureau Survey of Construction (SOC).

Over the longer term, the share of new homes with decks has been declining steadily since reaching a peak of 27.0% in 2007 and 2008. Amidst that decline, the share of new homes with patios has been trending upward, from under 50% to over 60% (despite a minor reversal of the upward trend in 2024). From the re-design of the SOC in 2005 through 2024, the correlation between the percentages of new homes with patios and decks is -0.85, indicating that patios and decks are functioning as substitutes over time—i.e., as patios become more common, they are crowding out decks.

Decks and patios appear to be substitutes across the U.S. On the single-family homes started in 2024, decks tended to be more common where patios were comparatively rare. For example, only 14% of the homes in the New England Census Division included patios, while a high of 69% included decks. Conversely, 82% of new homes included patios in the West South Central, while only 3% included decks. Across all nine divisions, the correlation between the percentages of new homes with decks and patios was -0.77.

Even so, decks remain relatively popular on new homes in some parts of the country. In addition to New England, over 30% of new homes came with decks in the West North Central (46%), Middle Atlantic (34%) and East South Central (31%) divisions. Moreover, in the latest edition of  What Home Buyers Really Want, 79% of recent and prospective home buyers rated a deck as an essential or desirable feature.

Additional detail on the characteristics of new-home decks is available from the Annual Builder Practices Survey (BPS) conducted by Home Innovation Research Labs.

Nationally, the 2025 BPS report (based on homes built in 2024) shows that the average size of a deck on a new single-family home is 278 square feet. Across Census Divisions, the average ranges from a low of 163 square feet in the West South Central to a high of 422 square feet in the Mountain division.

Beyond size, there continue to be strong geographic differences in builders’ choice of deck materials. On a square foot basis, treated wood is the most popular choice in the New England, South Atlantic, East South Central, and Mountain divisions. In the Middle Atlantic, East North Central, and West North Central, composite material predominates. In the Pacific Division, builders use concrete more than any other material, while in the West South Central there is a roughly even split between treated wood and concrete.

Of course, decks can be—and often are—added after the home itself is built. In the fourth-quarter 2024 survey for the NAHB/Westlake Royal Remodeling Market Index, decks ranked seventh among 22 listed remodeling projects, cited as a common job by 23% of the professional remodelers who responded to the survey.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Builder Confidence Edges Up in July

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Builder confidence for future sales expectations received a slight boost in July with the extension of the 2017 tax cuts, but elevated interest rates and economic and policy uncertainty continue to act as headwinds for the housing sector.

Builder confidence in the market for newly built single-family homes was 33 in July, up one point from June, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). Builder sentiment has now been in negative territory for 15 consecutive months.

The July HMI survey revealed that 38% of builders reported cutting prices in July, the highest percentage since NAHB began tracking this figure on a monthly basis in 2022. This compares with 37% of builders who reported cutting prices in June, 34% in May and 29% in April. Meanwhile, the average price reduction was 5% in July, the same as it’s been every month since last November. The use of sales incentives was 62% in July, unchanged from June.

Consistent with ongoing weakness for the HMI, single-family housing starts will post a decline in 2025 due to ongoing housing affordability challenges per the latest NAHB forecast. Single-family permits are down 6% on a year-to-date basis and builder traffic in the HMI is at a more than two-year low.

Derived from a monthly survey that NAHB has been conducting for more than 40 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

The HMI index gauging current sales conditions rose one point in July to a level of 36 while the component measuring sales expectations in the next six months increased three points to 43. The gauge charting traffic of prospective buyers posted a one-point decline to 20, the lowest reading since end of 2022.

Looking at the three-month moving averages for regional HMI scores, the Northeast increased two points to 45, the Midwest held steady at 41, the South dropped three points to 30 and the West declined three points to 25.

The HMI tables can be found at nahb.org/hmi.

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This article was originally published by a eyeonhousing.org . Read the Original article here. .

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