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New Home vs. Existing Home Prices in Q1 2026 – Eye On Housing

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In the first quarter of 2026, the median price for a new single-family home was $403,200, which was $1,400 lower than the median price of an existing home, which stood at $404,600. This marks the fourth consecutive quarter for which existing home prices have exceeded new homes prices, according to U.S. Census Bureau and National Association of Realtors data (not seasonally adjusted – NSA)

Typically, new homes carry a price premium over existing homes. However, beginning in the second quarter of 2024, this relationship reversed, with existing home prices exceeding new home prices in six of the past eight quarters.

Both new and existing homes saw dramatic increases in prices post-pandemic due to higher construction costs and limited supply. While overall home prices remain elevated compared to historical norms, new homes prices have moderated due to tactical builder business decisions, whereas existing homes prices continue to increase because of lean supply and in some markets a lack of price discovery for existing homeowners.

The median price for a new single-family home sold in the first quarter of 2026 decreased by 4.7% from the previous year. New home price annual growth has been trending downwards since the second quarter of 2023.

Although existing home prices have continued to experience year-over-year increases for past 11 quarters, annual growth has slowed from a high of 4.9% two years ago to just 0.6% in the first quarter of 2026.

There are several factors as to why new and existing homes are selling at similar price points. Tight inventory continues to push up prices for existing homes, as many homeowners who secured low mortgage rates during the pandemic are hesitant to sell due to current high interest rates.

Meanwhile, new home pricing is more volatile – prices change due to the types and locations of homes being built. Despite various challenges facing the industry, home builders are adapting to affordability challenges by building on smaller lots, constructing smaller homes, and offering incentives. Additionally, there has been a shift in home building toward the South, associated with less expensive homes because of policy effects. This has occurred in an environment in which construction costs continue to rise, which is the fundamental driver of home prices.

The least expensive region for new homes in the fourth quarter was the South, with a median price of $361,800. The Midwest followed closely behind at $375,900. For existing homes, the Midwest was the most affordable region at $309,100, followed by the South at $362,500.

New homes were most expensive in the Northeast with a median price of $815,600, while the West sold at $551,500. For existing homes, the West led as the most expensive region at $607,000, followed by Northeast at $506,400.

The new home price premium was most pronounced in the Northeast, where new homes sold for $309,200 more than existing homes. Additionally, in the Midwest homes new homes sold for $66,800 more than existing homes. The West and South followed the national trend, with existing homes priced $55,500 more than new homes in the West and $700 more in the South.



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

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New Home Sales Down in April on Affordability Concerns – Eye On Housing

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Elevated mortgage rates, higher inflation and economic uncertainty kept more buyers on the sidelines in April as ongoing affordability challenges continue.

Sales of newly built single-family homes fell 6.2% in April to a seasonally adjusted annual rate of 622,000, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales is down 11.3% from a year earlier.

Mortgage interest rates increased from a monthly average of 6.18% in March to 6.33% in April per Freddie Mac, dampening homebuyer demand. Rates moved higher again in May to just above 6.4% as oil prices and short-term inflation expectations increased.

New home sales are on track to decline in 2026 as mortgage rates are expected to remain elevated in the months ahead. The Midwest remains a bright spot, with sales up 7.3% year to date, compared with declines in the rest of the country. The Midwest benefits from relative advantages for homebuyer affordability.

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 April reading of 622,000 units is the number of homes that would sell if this pace continued for the next 12 months.

New single-family home inventory in April rose to 489,000 units, up 1.7% compared to the previous month. This represents an elevated 9.4 months’ supply at the current building pace. Completed, ready-to-occupy inventory accounted for 122,000 homes in April, up 6.1% from a year ago but down from the cyclical peak of 128,000 in January.

The median new home sale price was $422,500, up 8.0% from March and up 2.2% from a year ago.

Regionally, on a year-to-date basis, new home sales are up 7.3% in the Midwest. New home sales are down 9.7% in the Northeast, 7.6% in the South and 9.5% in the West.



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

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Custom Home Building – A Bright Spot for Construction – Eye On Housing

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With overall single-family construction down 5% for the first four months of 2026, custom home building has been a relative bright spot. The custom building market is less sensitive to the interest rate cycle than other forms of home building but is more sensitive to changes in household wealth and stock prices. With spec home building down and the stock market up, custom building has expanded its market share.

According to NAHB’s analysis of Census data from the Quarterly Starts and Completions by Purpose and Design survey, there were 36,000 total custom building starts during the first quarter of 2026. This is up 3% relative to the first quarter of 2025.

For the last four quarters, custom single-family housing starts totaled 188,000 homes, a 3% increase compared to the prior four quarter period (182,000).

Currently, the market share of custom home building, based on a one-year moving average, is 20% of total single-family starts. This is down from a prior cycle peak of 31.5% set during the second quarter of 2009 and the 21% recent peak rate at the beginning of 2023, after which spec home building gained some market share.

Note that this definition of custom home building does not include homes intended for sale, so the analysis in this post uses a narrow definition of the sector. It represents home construction undertaken on a contract basis for which the builder does not hold tax basis in the structure during construction. This form of home building is almost universally undertaken by smaller, private home builders.



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

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Single-Family Home Size Posts Small Gains – Eye On Housing

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New single-family home size had been falling since 2015 in response to declining affordability conditions. An exception occurred in 2021, when new home size increased as interest rates reached historic lows. However, as mortgage interest rates increased in 2022 and 2023 and affordability worsened, demand shifted back toward smaller homes. More recent data suggest these trends have stabilized, although that reversal is likely due to weakness for the starter-home market.

According to first quarter 2026 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area was 2,211 square feet, effectively unchanged from the start of the year but up more than 3% over the past two years. Average (mean) square footage for new single-family homes registered at 2,436 square feet, a small increase year-over-year.

On a one-year moving average basis, the average size of a new single-family home was increased slightly to 2,408 square feet, while the median size increased to 2,169 square feet.

Home size trends in 2026 are likely to post continued small gains, driven by relative strength at the high end of the market but constrained by housing affordability challenges.



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

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What It Takes to Leave Parental Home – Eye On Housing

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As of 2024, one in five adults aged 25-34 lives with parents or in-laws. NAHB’s analysis of the latest American Community Survey (ACS) Public Use Microdata Sample (PUMS) evaluates a wide range of socioeconomic and demographic factors that shape young adults’ path to independence. While the long-run demographic trends toward delaying marriage and childbearing are highly consequential, housing market constraints remain a significant barrier to leaving parental homes.

The current share of 19.5% translates into approximately 9 million young adults living with parents or parents-in-law. This is a sharp increase from 2000, when fewer than 12% (4.6 million) did so. The share peaked at roughly 22% in 2017–2018, when the ACS recorded more than 9.7 million young adults in this living arrangement.

Demographic Characteristics
A range of demographic characteristics influences the likelihood of leaving the parental home. Marriage is most consequential: 28% of single young adults live with parents, compared to just 6% of their married counterparts. Age follows a predictable pattern: nearly one-quarter of 25-year-olds live at home, falling to 17% among 30-year-olds and 12% at the upper end of the cohort. Young men are more likely to live with parents than young women (22% versus 17%).

Ethnicity and nativity further shape these outcomes. Hispanic young adults are more likely to live with parents (23%) than non-Hispanic peers (18%), consistent with higher rates of multigenerational living. In contrast, foreign-born young adults are less likely to live with parents than their native-born counterparts (14% versus 21%), likely reflecting the fact that many immigrants in this age group arrive in the U.S. as independent adults without family present.

Economic Drivers
Income and employment are the primary economic drivers. More than a third (34%) of unemployed young adults reside with their parents. Among those with jobs, the share is 17%. Income reinforces this pattern. The share living at home declines steadily with earnings, from nearly 30% among those earning less than $30,000 annually to just 6% among those earning $100,000 or more.

Educational attainment follows a similar gradual-decline pattern. The share living with parents decreases from a quarter of young adults without education beyond high school down to 16% among those with a bachelor’s degree and 10% among graduate degree holders.

Estimating the Odds of Independent Living

The socioeconomic and demographic forces shaping young adults’ residential independence are deeply intertwined. Educational attainment, for example, rises with age because completing advanced degrees requires additional years of schooling. Education, in turn, improves labor market outcomes and earnings potential, both of which facilitate leaving the parental home. At the same time, women now attain college and graduate degrees at higher rates than men, which may contribute to earlier residential independence among young women. To disentangle these overlapping influences, we use a logistic model that isolates each variable’s independent contribution to the odds of living outside the parental home.

The model’s results confirm that marriage is by far the strongest predictor of leaving the parental home. Married young adults are more than four times as likely to live apart from parents as otherwise similar unmarried individuals. Age continues to play a powerful role, with each additional year increasing the odds of leaving the parent by roughly 8.5%.

The other demographic effects, except education, remain strong as well. For education, the model reveals an important nuance: while higher educational attainment generally implies greater residential independence, the effect is substantially weaker, once the model accounts for age and other factors.  This finding most likely reflects the stalling effect of rising tuition costs and growing student debt burdens early in the career.

The income gradient holds after controlling for other characteristics. The model estimates that each $10,000 increase in personal income raises the odds of living independently by roughly 16%, while unemployment strongly predicts continued co-residence with parents.

The model also allows us to evaluate how housing market conditions affect young adults’ ability to leave their parents’ homes. To proxy for local affordability pressures, we estimate cost burdens (the share of renters and owners spending at least 30% of income on housing costs) for Public Use Microdata Areas (PUMAs), the smallest geographic units available in Census microdata (see the map below). The model shows that in markets with higher owner and renter-cost burdens, young adults are significantly less likely to establish residence outside the parental home, even after accounting for individual income, employment, and other factors. In other words, local housing market constraints directly inhibit young adults’ ability to leave their parents’ homes.

Overall, the model confirms that long-term demographic trends toward delaying marriage undoubtedly made living with parents more common. Nevertheless, while marriage, income, and age are the powerful drivers, housing market constraints significantly limit young adults’ ability to leave the parental home.



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

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Existing Home Sales Edged Up Slightly in April – Eye On Housing

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Existing home sales edged up in April after reaching a nine-month low in March, but sales remained at historically low levels. Elevated mortgage rates and reignited inflation driven by the Iran war continued to weigh on affordability as economic uncertainty pushed up long-term rates, while rising energy costs strained household budgets. Despite inventory improving in recent months, it remains below pre-COVID levels and continues to push home prices to a record high for April as demand outpaces supply.

Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, rose 0.2% to a seasonally adjusted annual rate of 4.02 million in April, according to the National Association of Realtors (NAR). On a year-over-year basis, sales were unchanged from a year ago.

The existing home inventory level was 1.5 million units in April, up 5.8% from March and 1.4% from a year ago. At the current sales rate, April unsold inventory sits at a 4.4-months’ supply, up from 4.2-months in March and 4.3-months a year ago. Inventory between 4.5 to 6 months’ supply is generally considered a balanced market.

Homes stayed on the market for a median of 32 days in April, down from 41 days in the previous month but up from 29 days in April 2025.

The first-time buyer share was 33% in April, up from 32% in March but down slightly from 34% a year ago.

The April all-cash sales share was 25% of transactions, down from 27% in March but unchanged from a year ago. All-cash buyers are less affected by changes in interest rates.

The April median sales price of all existing homes was $417,700, up 0.9% from last year. This marks the 34th consecutive month of year-over-year increases. The median condominium/co-op price in March was up 1.1% from a year ago at $374,100. Recent gains for home inventory will put downward pressure on resale home prices in most markets in 2026.

Existing home sales in April were mixed across the four major regions. Sales rose in the Midwest (+2.2%) and South (+0.5%), fell in the West (-2.6%), and remained unchanged in the Northeast. On a year-over-year basis, sales were flat in the West, declined in the Northeast (-8.2%) and Midwest (-1.0%) but increased in the South (+2.7%).

The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI rose from 72.6 to 73.7 in March due to improved inventory. On a year-over-year basis, pending sales were 1.1% lower than a year ago, according to the National Association of Realtors’ data. However, resurgence in mortgage rates driven by the Iran war could reverse the increase.



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

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New Home Sales Rise, Supported by Limited Existing Inventory    – Eye On Housing

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The U.S. housing market showed mixed but generally improving conditions in March, as new home sales strengthened and price pressures continued to ease. While inventory dynamics varied across segments, moderating home prices and increased availability at the lower end of the market provided some relief to buyers navigating ongoing affordability challenges.

Sales of newly built single-family homes increased 7.4% month-over-month in March to a seasonally adjusted annual rate of 682,000 units, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This represented a 3.3% increase compared to a year earlier. A new home sale is recorded when a contract is signed, or a deposit is accepted, regardless of the stage of construction. The seasonally adjusted annual rate reflects the pace of sales that would occur over a 12-month period if current conditions persist.

New single-family home inventory totaled 481,000 units in March, down 0.4% from the prior month and 4.6% from a year earlier. At the current sales pace, the months’ supply of new homes stood at 8.5 months, down from 9.2 months one year ago, though still above the six-month level generally considered to indicate a balanced market.

Combined new and existing home inventory has edged higher in recent months, with the total months’ supply reaching 4.8 months. Meanwhile, inventory conditions in the existing home market have retreated after showing gradual improvement in prior months. Moderating prices across both markets have helped support buyer demand amid ongoing affordability concerns.

At the end of March, there were 119,000 completed, ready-to-occupy homes available for sale on a non-seasonally adjusted basis, up 5.3% from a year earlier. Completed homes accounted for one-quarter of total inventory, while homes under construction made up 51%. The remaining 24% of homes sold in March had not yet started construction at the time the sales contract was signed.

Home prices showed further signs of cooling at the start of 2026. The median new home sale price was $387,400, down 6.2% from a year ago, and 9.7% below the recent peak of $429,100 reached in December 2025. Affordability improved at the lower end of the market, with 20 percent of new homes priced below $300,000. Over a quarter (28%) of homes were priced above $500,000, while the remaining share fell within the $300,000 to $500,000 range.

Regionally, year-over-year new home sales increased 8.0% in the Midwest, reflecting ongoing strength in residential construction across the Midwestern states. New home sales declined 17.6% in the Northeast, 14.0% in the West and 2.6% in the South.



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

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Home Building Shows Signs of Stabilization with Monthly Gain in Starts – Eye On Housing

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Housing construction activity strengthened in March, with a notable rebound in both single-family and multifamily starts, signaling improved builder activity despite ongoing headwinds from financing costs and affordability constraints. While the monthly gain points to renewed momentum, year-to-date trends remain mixed, particularly in the single-family sector, and permit activity suggests some caution moving forward.

Overall housing starts increased 10.8 percent in March to a seasonally adjusted annual rate of 1.5 million units, according to a report from the U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau. This pace reflects the number of housing units builders would begin over the next 12 months if March’s activity were sustained.

Within the total, single-family starts increased 9.7 percent to a seasonally adjusted annual rate of 1.03 million units and are up 8.9 percent compared to March 2025. On a year-to-date basis, single-family starts are down 5.5 percent. Given recent volatility, the three-month moving average provides a clearer signal, rising to 957,000 units.

Multifamily starts, which include apartment buildings and condominiums, increased 13.3 percent to an annualized 470,000-unit pace and are up 15.5 percent compared to March 2025. The three-month moving average for multifamily construction has trended higher to 462,000 units, and activity is 15.5 percent higher compared to year-ago levels.

Regionally, on a year-to-date basis, combined single-family and multifamily starts were 36 percent higher in the Northeast, 7.8 percent higher in the Midwest, 3.0 percent higher in the South, but 15.5 percent lower in the West.

The total number of housing units under construction stood at 1.3 million in March, down 9.8 percent from a year earlier. Single-family homes under construction stood at 587,000 units, a 7.3 percent year-over-year decline. Multifamily units under construction declined to 677,000, down from peaks above 1 million units in December 2023 and 11.8 percent lower than a year ago.

Completions of single-family homes have slowed down to an annual rate of about 896,000 units, reflecting ongoing challenges in the residential construction sector. This marks a 14.5 percent decline from a year earlier. Multifamily completions for buildings with five or more units followed the same trend, down 9.1 percent year over year to a 452,000-unit pace. On a year-to-date basis, total completions across both sectors are down 13.5 percent.

Overall permits decreased 10.8 percent to a 1.37 million-unit annualized rate in March. Single-family permits decreased 3.8 percent to an 895,000-unit rate and are down 7.9 percent compared to March 2025. Multifamily permits decreased 21.5 percent to an annualized 477,000-unit pace and are down 6.3 percent compared to March 2025. Looking at regional permit data on a year-to-date basis, permits were 15.4 percent higher in the Northeast, 6.0 percent higher in the West, and 1.1 percent higher in the Midwest. However, permits were 9.1 percent lower in the South.



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

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In Home Improvement

8 Home Remodeling Trends to Watch in 2026

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Home renovation activity held steady in 2025 as more than half of U.S. homeowners undertook projects and median spend held at $20,000, according to the just-released 2026 U.S. Houzz & Home Study. High-end renovations gained ground, underscoring ongoing demand even as some homeowners grow more cautious about what’s ahead. For 2026, a slightly smaller share of homeowners plan to renovate, and those who do expect to spend less.

“Home renovation continues at historic levels even as homeowners take a more cautious approach to future projects,” says Marine Sargsyan, head of economic research at Houzz. “What’s driving this resilience is pent-up demand from homeowners who are finally able to act on long-planned renovations. At the same time, we’re seeing a clear shift toward investing in forever homes rather than moving, with many adapting their spaces to meet changing needs.”

Beyond those broad trends, the study highlights a growing share of Gen Z renovators, evolving financing habits — including increased reliance on credit cards alongside savings — and frequent budget overruns tied to upgraded choices or expanded scope. Demand for professionals also remains strong, with the vast majority of homeowners hiring help for their projects.

Here’s more from the new study.



This article was originally published by a www.houzz.com . Read the Original article here. .

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Colorful, Comfortable Home Refresh for Everyday Living

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Kandrac & Kole Interior Designs, Inc.Save Photo

The kitchen, casual eat-in area and family room are all open to one another. One major change was replacing three windows on the right with glass doors that lead to an existing screened-in porch. Having a casual eat-in area where the whole family can enjoy meals together was important to the homeowners.

Across the room, the color palette for the great room began with these drapes. “They were the jumping-off point for everything,” Kandrac says. “It’s kind of a chinoiserie pattern with lots of greens, and it also has camel tones that play off the stone fireplace and the floors.”

Because the three spaces form one open great room, the designers carefully considered how the light fixtures would work together. The family room’s vaulted ceiling required a large-scale chandelier, so they chose a two-tiered fixture that would not block the TV. For the dining area, they chose a 47-inch chandelier that’s proportionate to the 60-inch-diameter table below. The two chandeliers differ in style, but their black-and-gold finishes tie them together.



This article was originally published by a www.houzz.com . Read the Original article here. .

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