NAHB Homebuilder Sentiment: May HMI Improves 3 Points to 37. Avg. Price Reduction +1 PPT to 6%.

Research evidence excerpt

NAHB Homebuilder Sentiment: May HMI Improves 3 Points to 37. Avg. Price Reduction +1 PPT to 6%.

Homebuilders & Building Products

May 18, 2026

NAHB Homebuilder Sentiment: May HMI Improves 3 Points Exhibit 1 - NAHB HMI

to 37. Avg. Price Reduction +1 PPT to 6%. Statistics

NAHB Builder

The Wolfe Byte Sentiment Index

The May HMI improved 3 points MoM to 37. The Consensus was 35. While all three May 2026 37

HMI components improved sequentially, they remain in “contractionary” territory. April 2026 34

MoM Chg +3

Vs 50 -13

The May NAHB HMI (Builder Sentiment Index, measuring April) increased 3 Source: Wolfe Research, Census

points to 37. This was 2 points above the 37 Consensus expectation. This was the

Exhibit 2 - NAHB HMI25th consecutive month the HMI has been in negative territory (i.e. <50) and 13th

Since 2021consecutive month below 40. The HMI also increased 3 points YoY. The “Present 90

80Sales“ metric increased 3 points to 40 from 37 in April and is relatively in-line with 70

60the 41 1Q26 average. The “Traffic“ metric also improved 3 points sequentially to 50

4025, matching the March figure. “Future Sales“ expectations improved 3 points to 45, 30

20but remains below the key “50“ reading for the fifth consecutive month. We remind May-21 Aug-21 Nov-21 Feb-22 May-22 Aug-22 Nov-22 Feb-23 May-23 Aug-23 Nov-23 Feb-24 May-24 Aug-24 Nov-24 Feb-25 May-25 Aug-25 Nov-25 Feb-26 May-26

investors the “Future Sales“ reading reached 49 in January and March but has since Source: Wolfe Research, NAHB

deteriorated. Pricing commentary was mixed. The share of homebuilders employing

incentives increased 1 PPT sequentially to 61%. May was the 14th consecutive month

the share of homebuilders employing incentives was 60% or more. Conversely, the