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
Sponsored Content
Sep 09, 2025
Why Land Deals Fall Apart — and How to Protect Your PipelineTeams that can see competitor strategies earlier, understand where capital is flowing, and anticipate growth corridors will be better positioned to protect margins and capture opportunity. Achieving that higher standard means moving beyond lagging signals and fragmented records to complete land intelligence. This is exactly what the Acres Home Builder Index is built to provide.
Membership | Professional Women in Building Council
Sep 08, 2025
Industry to Celebrate Professional Women in Building Week Sept. 15-19Join NAHB for a week of inspiring events and learning opportunities that showcase the achievements of women the industry. PWB Week will also highlight our efforts to promote, train, advance and recruit more women into the field.
Latest Economic News
Economics
Sep 09, 2025
Share of New Homes with Patios Edges Down for First Time in Fifteen YearsFor the first time in 15 years, the share of new homes with patios finally declined in 2024, according to NAHB tabulation of data from the Survey of Construction (conducted by the U.S. Census Bureau with partial funding from the Department of Housing and Urban Development).
Economics
Sep 09, 2025
Who Are NAHB Remodelers?Twenty-one percent of NAHB builder members listed residential remodeling as their primary business activity, according to the 2024 Member Census. These remodelers tend to be relatively small companies, with a median of five employees, $1.7 million in median revenue, and 15 remodeling jobs completed over $10,000.
Economics
Sep 08, 2025
Purchase Activity Slips Despite Lower Mortgage RatesMortgage application activity increased again in August, supported by lower interest rates. The Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, rose 5.0% from July on a seasonally adjusted basis and was 18.3% higher than a year ago.