Let’s talk homebuilding. We are a couple of months into the new year, and there is much for homebuilders to consider as the year continues to unfold. For instance, 84% of homebuilders said that elevated mortgage rates were the most significant challenge builders faced in 2025, and 65% anticipate interest rates will remain a problem in 2026.
Other serious issues builders faced in 2025, according to the NAHB (National Assn. of Home Builders)/Wells Fargo Housing Market Index, include:
- Concern about the employment/economic situation
- The cost/availability of developed lots
- Negative media reports making buyers cautious
- Cost/availability of labor
- Rising inflation in the U.S. economy
- Gridlock/uncertainty in Washington
- Impact/hook-up/inspection and other fees
- Local/state environmental regulations and policies
Looking ahead at 2026, fewer builders expect high interest rates and rising inflation in the US economy to be significant problems. On the other hand, builders don’t anticipate much change around labor shortages, uncertainty in Washington, fees, or local regulations.
Much of this was conversation at the 2026 NAHB International Builders’ Show last week in Orlando, Fla., at the Orange County Convention Center. This event, which serves as the final Orlando-based show before moving permanently to Las Vegas, is co-located with the Kitchen & Bath Industry Show as part of Design & Construction Week.
At the event, NAHB unveiled the official show homes. Located in Winter Park, Fla., the 2026 show homes are built to showcase the latest innovations in homebuilding products, designs, and techniques.
One of the homes is a six-bedroom, eight-bathroom luxury residence with 7,889-sq.ft., of living space and a total of 16,612-sq.ft., under roof. It is one large home, and it boasts several premium features including a wellness center, theater, wine cellar, game room, and an underground garage for up to 18 cars.
The remodeled home exhibit showcases a “soft renovation” of 3,341-sq.ft. home originally built in the 1950s. The project focused on updating existing structures with modern products and design techniques, rather than tearing down and building new. The three-bedroom, three-and-one-half-bathroom renovated home features a more cohesive design and open floorplan, with several indoor-outdoor living amenities.
Both the new home and the remodeled home achieved high industry marks for sustainable construction. The homes have earned NGBS Green certification at the Gold or Emerald level—and will receive certifications from multiple government programs, including: ENERGY STAR, DOE Efficient Homes and Indoor AirPlus.
Certainly, this is only the tip of the iceberg of what was on display at IBS 2026. Many of the technology and software providers were in attendance, with updated products, partnerships, and announcements for homebuilders. What are you seeing and hearing in homebuilding today?
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