May Builder Sentiment: Stuck in a Slow Lane

Two out of three builders said demand was slower than expected last month.

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Each month, Zonda surveys builders across the country to gauge sentiment around the housing market. This survey is intended to supplement Zonda’s proprietary database by asking builders more qualitative questions.

The anonymous survey covers everything from consumer sentiment to broader macroeconomic topics like tariffs and immigration. Results are tracked over time and analyzed geographically to capture real-time shifts in builder and consumer confidence.

Below are three key takeaways from the May responses:

  1. Frustration over a slow market.
  2. A shift in community count expectations.
  3. Looking for optimism.

Frustration Over a Slow Market

When asked about recent performance, 67% of builders reported that May demand was slower than expected. One builder noted that “it’s been a long time since we have seen a spring market this slow.”

In fact, “slow” was the single most common word used by builders to describe the current environment, followed by “challenging,” “lack of affordability,” “erratic,” and “incentive-driven.”

The insights in this article were taken from a more detailed monthly review of the survey’s findings published in Zonda’s National Outlook. 

About the Author

Ali Wolf

Ali Wolf is the chief economist for Zonda and NewHomeSource. As head of the economics department, Wolf manages and analyzes the content, runs special research projects, strategizes with the nation’s largest home builders, and presents nationwide covering topics across the housing market and wider economy.

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