Housing affordability continues to be one of the biggest challenges in today’s real estate market, and a new report from the National Association of Home Builders (NAHB) highlights just how much that’s shaping both buyer behavior and the homes being built in 2026.
Over the past several years, home prices have risen much faster than household income. Since 2019, home prices have increased by roughly 53%, while median household income has grown by about 24%. That gap is making it more difficult for many households — especially first-time buyers — to enter the housing market.
In fact, first-time homebuyers now make up a much smaller share of the market than in the past. In 2025, they accounted for about 21% of buyers, down from 44% in 1981. At the same time, the median age of first-time buyers has climbed to 40.
Changing Households Are Changing Housing Needs
Beyond affordability, shifting lifestyle trends are also influencing what today’s buyers are looking for in a home.
More young adults between the ages of 18 and 24 are living with their parents longer, fewer couples have children, and single-person households are becoming more common. These demographic changes are directly impacting how builders approach new construction and community planning.
Rather than simply building larger homes, builders are focusing on smarter designs, adding features that maximize function without dramatically increasing square footage.
That includes:
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Flexible, multi-purpose rooms
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Work-from-home office space
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Mudroom-style storage areas
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Electric vehicle charging capabilities
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Thoughtful outdoor living spaces
We’re already seeing these design trends appear in newer homes throughout the Greater Houston area, including Cypress communities like Bridgeland, where efficient floorplans and adaptable living spaces are becoming increasingly important to buyers.
Builders Are Taking Steps to Address Affordability
Builders are also adjusting in response to affordability concerns.
According to the National Association of Home Builders:
Locally, that can translate into meaningful opportunities for buyers in the form of:
In some cases, these incentives can make new construction homes surprisingly competitive with resale properties when it comes to monthly payment.
Across all price points, however, one feature consistently rises to the top of buyer wish lists: Outdoor Living Spaces
Whether it’s a covered patio, courtyard, rooftop deck, or access to shared green space within a thoughtfully planned community, buyers continue to place a high value on having a connection to the outdoors.
A Broader Mix of Housing Options Is on the Rise
To meet evolving needs, developers are also expanding the types of housing available. Mixed-density communities that incorporate townhomes and patio homes alongside traditional single-family homes are becoming more common.
These options can help improve affordability while still offering access to neighborhood amenities, trails, green spaces, and lifestyle-focused community features — a trend that is expected to continue as demand for attainable housing grows.
The Bottom Line
Today’s housing market is less about building bigger homes and more about building better-designed homes that reflect how people live today.
For buyers across the Houston area, from Sugar land to The Woodlands to Cypress, and beyond, that means more thoughtfully designed floorplans, more flexible living spaces, and a wider range of housing options to meet different needs and budgets.
As affordability remains a key concern in 2026, both buyers and builders are adapting — and the homes of the future are evolving right along with them.
