Nearly 4 in 10 U.S. homebuilders are cutting prices, with the average reduction holding at 6% as of July 2026, according to the latest National Association of Home Builders (NAHB) data. The MarketWatch findings, reported by Aarthi Swaminathan on July 16, 2026, confirm that the share of builders reducing prices has stayed near 40% for roughly a year. The New York Times first documented this level in August 2025 under the headline "As Housing Demand Continues to Fall, Builders Get Creative."

The NAHB's own press releases show the cuts getting deeper over time. In July 2025, the average price reduction was 5% (NAHB, July 2025). By October 2025, it had risen to 6% (NAHB, October 2025). The July 2026 reading holds at that same 6% mark (NAHB, July 2026).

This situation has created something unusual: new homes are now cheaper than existing ones. Straight Arrow News (san.com) reported this in August 2025. Normally, a brand-new house costs more than a previously owned one because everything is fresh and unused. The reversal means builders are so eager to sell that they're pricing below the secondhand market.

Builders are also offering extras beyond price cuts. These include help with mortgage costs (where the builder pays a lender to lower the buyer's interest rate), covering closing costs, and throwing in upgraded finishes like better countertops or flooring. These perks make the real cost of buying even lower than the price tag alone suggests.

Why does it matter that this has lasted a full year? In a normal housing slowdown, builders cut prices for a few months, sell off their extra inventory, and then raise prices again as buyers return. The fact that nearly 40% of builders have been cutting prices for twelve months straight suggests the problem isn't temporary. It's more like a chronic condition than a passing illness.

The 6% average reduction staying steady between October 2025 and July 2026 tells us builders have found a price where enough buyers will show up. But they need to keep offering discounts and perks to maintain that pace of sales. The incentives are now part of how they do business, not a short-term sale.

Here's what this means for people selling existing homes. If a buyer can get a brand-new house for the same price as a used one, the used one looks overpriced. And resale sellers usually can't offer the kinds of deals builders can, like helping with mortgage rates. So existing-home sellers are at a disadvantage even if their asking price looks similar. This can slow down resale sales, especially in areas with a lot of new construction.

For anyone trying to read the housing market, two numbers tell the story. The share of builders cutting prices — currently near 40% — is the one to watch first. If it drops below 40% for a while, that would signal buyers are coming back. If it goes above 40%, things are getting worse. The 6% average reduction is the second number. It's a confirmation: if it starts rising again, the price builders are holding at isn't working anymore.

The NAHB's July 2026 release also notes weak builder confidence and ongoing affordability concerns. These are the same issues that have kept price-cutting high all year. None of the available data points to a near-term change in those conditions.