Survey: 22% of Builders Lowered Prices in April
In recent weeks, there has been anecdotal evidence about builders lowering home prices in the wake of the COVID-19 pandemic, but the latest NAHB/Wells Fargo Housing Market Index (HMI) survey provides factual data: Nationally, about 22% of builders cut home prices in April 2020 in order to bolster sales and/or limit cancellations.
Regionally, builders in the South (26%) and Midwest (23%) were the most likely to have reduced prices, compared with much smaller shares in the West (13%) and Northeast (12%).
Historically, the 22% of builders reducing home prices in April 2020 is less than half the share who cut prices during the last housing recession: 52% in May 2007 and 49% in March 2008 (Figure 1).
Builders who did reduce home prices in April 2020 cut them by an average of 5%. That discount is smaller than the average price cuts in both May 2007 (7%) and March 2008 (8%).
Only 12% of builders think price discounts are “very effective” in bolstering sales/limiting cancellations. A majority of builders — 58% — believe they are “somewhat effective,” and 17% report they are “not at all effective.” The remaining 13% are not sure about the effectiveness of home price reductions.
NAHB economist Rose Quint provides additional analysis in this Eye on Housing blog post.
Latest from NAHBNow
Sep 30, 2025
Fall Membership Recruitment Competition is Under WayThe 2025 Fall Recruitment competition runs from Sept. 1 to Nov. 30.
Sep 29, 2025
Massachusetts Advocacy Efforts Place Development on the Fast TrackGov. Maura Healey recently released draft regulations that would speed up housing development in the state. HBRAMA played a key role in shaping the pro-housing proposal.
Latest Economic News
Sep 30, 2025
Construction Labor Market SoftensThe count of open, unfilled positions in the construction industry decreased in August, per the Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS). The decline occurred as home building weakened in 2025.
Sep 29, 2025
Characteristics of Homes Built in Age-Restricted CommunitiesIn 2024, approximately 43,000 homes were built in age-restricted communities, representing just over 3% of all housing starts. According to the Census Bureau’s Survey of Construction, roughly three-quarters of these homes (32,000) were single-family units.
Sep 26, 2025
2025 Second Quarter State-Level GDP DataReal gross domestic product (GDP) increased in 48 states in the second quarter of 2025 compared to the first quarter, according to the U.S. Bureau of Economic Analysis (BEA).