Each month, Zonda surveys builders across the country to gauge sentiment around the housing market. This survey is intended to supplement the proprietary Zonda 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.
Here are three key takeaways from our January survey:
- Rates appear to finally provide some lift in traffic.
- Almost 80% of builders offered buydowns.
- Confidence remains the main buyer issue.
Rates appear to finally provide some lift in traffic. January’s demand outlook showed some improvement, with just over half of builders reporting that demand was on track with their expectations. This was double the share seen in December and the highest share of “on track” responses since April 2024. As a reminder, though, part of this improvement reflects a moving goal post, as many builders have lowered their projections.
Beyond revised expectations, we attribute the slightly better feedback to two things: seasonality, as consumer engagement typically improves after the holidays, and interest rates. In fact, one quarter of builders reported a slight uptick in traffic tied to lower rates, up from 14% last month. Another 10% reported a meaningful increase in traffic, more than triple the 3% share back in December.
That said, the pickup in traffic remained uneven. Sixteen percent of builders reported no notable change in traffic tied to rates, while another quarter said that buyers remain spooked or that overall market conditions are still slow. Write-in comments suggest that converting shoppers to buyers remains challenging, though builders continue to see pockets of quality demand.
The insights in this article were taken from a more detailed monthly review of the survey’s findings published in Zonda’s National Outlook.
