U.S. New-Home Sales Edge Lower as Inventory and Affordability Challenges Persist

WASHINGTON, D.C. — October 27, 2026

Sales of newly built single-family homes in the United States edged lower in September, according to the latest report from the U.S. Census Bureau and the Department of Housing and Urban Development (HUD). The figures point to a housing market where elevated borrowing costs and affordability concerns continue to weigh on demand, even as builders work to attract buyers.

New-home sales reached a seasonally adjusted annual rate of 676,000 in September, down 0.6% from August’s revised rate of 680,000 and 5.3% below the September 2025 rate of 714,000.

The annualized figure estimates how many homes would sell over 12 months if the September pace continued. It is not the actual number of homes sold during the month.

New-Home Inventory Remains Elevated Relative to Sales

An estimated 476,000 new single-family homes were available for sale at the end of September, down 1% from August’s revised total of 481,000 and 2.3% below the 487,000 recorded a year earlier.

At September’s sales pace, the available inventory represented 8.4 months of supply. That was slightly below August’s 8.5 months but above September 2025’s 8.2 months.

The months-of-supply measure compares the number of homes available for sale with the current rate of sales. A higher figure can indicate that buyers have more options relative to demand, although conditions vary by location and price range.

Of the 476,000 homes listed as available, approximately 111,000 were completed, 250,000 were under construction and 115,000 had not yet begun construction.

The relatively large number of homes still under construction or not yet started highlights the different stages represented in new-home inventory. A home can be counted as sold when a sales contract is signed or a deposit is accepted, even if construction has not begun.

Regional Sales Performance Is Mixed

New-home sales varied across the country in September, with declines in the South and Midwest offset by increases in the West and Northeast.

The South, the largest regional market, recorded a 6.6% monthly decline in sales, while the Midwest fell 7.3%. In contrast, sales in the West increased 21.4% from August, and the Northeast posted a 28% monthly increase.

Despite those monthly gains, the West remained below its year-earlier sales level. The regional differences show why national figures alone cannot fully explain housing conditions in individual markets.

Changes in local employment, available housing, construction activity, borrowing costs and buyer demand can all influence regional performance.

Median New-Home Price Rises Monthly but Falls Year Over Year

The median price of a new home sold in September was $400,400, up 3.9% from August’s $385,400 but down 3.9% from September 2025’s $416,800.

The average sales price was $472,800, up 0.4% from August but 6.7% below the year-earlier figure of $506,800.

The difference between median and average prices reflects the fact that they measure prices differently. Both can also move from month to month as the mix of homes sold changes.

The Census Bureau cautioned that the reported price changes were within the estimates’ margins of error. The figures therefore should not be interpreted as definitive proof of a sustained price increase or decline.

Mortgage Costs and Builder Incentives Shape Buyer Decisions

Higher mortgage rates have made financing more expensive for many prospective homebuyers, putting pressure on affordability. In response, some builders have used incentives such as mortgage-rate buydowns, closing-cost assistance or price adjustments to make new homes more attractive.

These offers can improve the overall cost of buying a newly built home, but their availability and value vary by builder, development and buyer eligibility.

Prospective buyers should compare the full cost of a purchase, including the home price, financing terms, property taxes, insurance, homeowners association fees and any conditions attached to builder incentives.

For builders, the challenge is to balance sales with inventory management while navigating construction costs and uncertain demand.

What the Latest Figures Mean for Buyers and Builders

The September report suggests that new-home sales remain below their year-earlier pace, while the supply of available homes remains substantial relative to current sales.

For buyers, this may create opportunities to compare developments and ask about available incentives. However, an elevated national supply figure does not guarantee that homes are affordable or readily available in every local market.

Builders and housing professionals will be watching upcoming releases for evidence that sales are stabilizing or that inventory is continuing to adjust.

The Census Bureau’s estimates are subject to sampling uncertainty and revisions, making several months of data more informative than a single report. For now, the September figures point to a market still working through affordability pressures rather than confirming a clear turning point.