The new-home market was still affected by affordability challenges in June, as elevated mortgage rates, rising inflation, and broader economic uncertainty kept many potential buyers on the sidelines.
The U.S. Department of Housing and Urban Development and the U.S. Census Bureau have recently released data that indicates that the sales of newly constructed single-family homes increased by 1.6% in June to a seasonally adjusted annual rate of 628,000.
This figure represents an increase from the upwardly revised May estimate.
From the previous year, the rate of new home sales has decreased by 5.6%.
On a year-to-date basis, new home sales have decreased by 5.2%, as housing demand remains lax in the face of affordability challenges.
Only the Midwest has experienced an increase in new home sales at the regional level thus far in 2026.
NAHB survey data indicates that 62% of builders provided some form of incentive in June, indicating that builders continue to employ incentives to support sales.
Homes priced below $300,000 comprise 23% of June sales, a 23% increase from 16% a year ago, indicating that new home sales are acquiring some momentum in the more affordable part of the market.
In general, this price point is only feasible in markets with lower development and construction costs, particularly in terms of lower state and local regulatory costs.
The signing of a sales contract or the acceptance of a deposit constitutes the sale of a new home.
The residence can be in any stage of construction, including not yet begun, under construction, or completed.
The 628,000 units reported in June are the number of homes that would be sold if the current pace were to persist for the next 12 months, in addition to accounting for seasonal fluctuations.
The inventory of new single-family homes in June remained virtually unchanged at 485,000 units, a 0.2% decrease from May and a 3.2% decrease from a year-ago.
This indicates an increased supply of 9.3 months at the current rate of construction.
As per NAHB analysis, the combined inventory of new and existing homes is at the greatest level since the fall of 2014, just above a 5.2-month supply, as a result of the increasing resale single-family inventory and the elevated new construction inventory.
The median price of a new home in June decreased by 3.3% from May to $398,300 and by 2.7% from a year ago.
This decline was primarily the result of price reductions by builders and a geographic shift in the balance to the More Affordable Midwest.
In the Midwest, new home sales have increased by 2.6% year-to-date, while they have decreased in the other three regions.
The Northeast, South, and West all experienced declines of 4.7%, 4.9%, and 10.1%, respectively.
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