Housing trends in 2026: What builders are seeing – Houston Agent Magazine

Affordability continues to be a challenge in housing, and a new report from the National Association of Home Builders shows how that’s influencing both buyers and builders in 2026. 

Home prices have climbed much faster than incomes over the last several years, up roughly 53% since 2019 compared with about a 24% increase in median household income.  

First-time homebuyers make up a much smaller share of the market than in the past. In 2025, they represented just about 21% of buyers, down from 44% in 1981, and the median age for first‑timers has climbed to 40. 

Social and household patterns are shifting too. More young adults ages 18–24 are living with their parents, fewer couples have children, and more people are choosing to live alone. These demographic trends are part of why builders are adjusting what they put into new homes. 

“You can’t have housing prices rise that significantly for a sustained period of time and not experience housing affordability issues,” said Rose Quint, NAHB assistant vice president of survey research. “Clearly this will have implications on the size of homes we build and the types of amenities we include.” 

In terms of house design, the median home size hasn’t changed much recently, but builders are adding features buyers care about. That includes flexible spaces like drop zones and multi‑purpose rooms and more homes with electric vehicle charging stations. 

Builders are also trying different ways to address affordability. Sixty-seven percent are offering sales incentives, and roughly 41% have cut home prices compared with past years. 

What buyers want varies by price point, according to the report. Entry‑level buyers tend to focus on value and practical layout needs, while higher‑end buyers often look for extra bedrooms and bathrooms, home offices, energy‑efficient features and community amenities. 

Across income levels, outdoor space keeps coming up as something everyone values. Builders are finding creative ways to include patios, rooftop decks or other outdoor living areas, even in smaller homes. 

There’s also movement toward offering a broader mix of housing types. Developers are looking at adaptive reuse projects and mixed‑density communities with townhomes or condos to give buyers more options.