July Builder Sentiment: The Worst Month of the Year

A thinner buyer pool, rising incentive use, and ongoing land challenges defined a difficult July for many builders.

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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 July responses:

  1. The worst month of the year
  2. Frustration with the land market
  3. Help is (not) on the way

The worst month of the year

In one standard survey question, 77% of builders said demand was slower than expected, while 23% said demand was meeting or exceeding expectations.

Importantly, many builders noted that July and August are traditionally among the slowest months of the year. That seasonality should already be reflected in their expectations. In other words, builders are not comparing July to spring demand; they are comparing it to what they normally expect for July. The fact that demand still came in below expectations suggests conditions softened beyond normal seasonal patterns.

The insights in this article were taken froma moredetailedmonthly review of the surveysfindingspublished inZonda’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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