At the start of 2026, most home builders predicted that high mortgage rates and hesitancy among buyers would be their toughest challenges this year. They weren’t wrong: the 30-year mortgage rate averaged 6.49% in June and housing demand has weakened, as reflected by flat mortgage applications in the first half of the year. As a result, new home sales are 7% behind this time last year and builders have put the brakes on production, starting 5% fewer homes than in the first half of 2025. Amid this tough business environment, when companies need to find efficiencies and economies of scale, the industry is experiencing increased levels of consolidation activity. So far in 2026 for example, Taylor Morrison was acquired by Berkshire Hathaway; Tri Pointe Homes by Sumitomo Forestry; and United Homes Group by Stanley Martin Home.

To better understand the extent of this phenomenon across a representative sample of builders in the country, the NAHB/Wells Fargo Housing Market Index survey asked about merger and acquisition (M&A) activity in August 2025 and again in June 2026. Results reveal an uptick in the share of builders reporting increased M&A activity in their local markets, from 14% in August 2025 to 21% in June 2026. More than 40% of builders, however, report no changes in consolidation trends in the markets where they operate. 

A second finding also points to somewhat higher levels of M&A activity in the industry: the share of builders who have been approached for acquisition and/or merger doubled between August 2025 and June 2026, from 9% to 18%. As a result, the segment who have not been approached at all dropped from 87% to 78% during this period.

When asked about future plans for growth, most builders (61%) plan to expand organically in their existing markets. Only small minorities plan to expand by acquisition (6%) or to be acquired by another company (5%). For additional details, please consult the full survey report.