Homebuilder Sentiment: Change in Home Specs Quarter-Over-Quarter

Principia introduced the Homebuilder Sentiment Dashboard in Q4 2024 to track perceptions of homebuilders on key business issues over time. This month, we’re taking a closer look at two sentiment measures surrounding new home construction.

The frequency of building to HERS standards is increasing.

Though this sentiment has remained constant over the last two quarters, a majority of homebuilders state their frequency of building homes to HERS (Home Energy Rating System) standards is increasing.

Builders report building smaller homes.

Perhaps it is too early to claim a trend, more homebuilders report they are building smaller homes (in square footage) compared to 12 months ago. We will continue to monitor these sentiments over time.