The housing market is heading into 2027 with plenty of uncertainty. Builders are managing rising costs, buyers are weighing affordability, and many homeowners are choosing to stay where they are. But new COGNITION Smart Data research suggests the year ahead may also create openings for companies ready to adapt.
Half of surveyed builders named rising material costs as a major challenge. Labor and land costs also ranked high, adding pressure to margins and project budgets.
At the same time, builders are considering where to invest. Marketing and sales topped their 2027 investment priorities, followed by customer experience. When asked where they see opportunity, builders pointed to new materials and products, improved marketing and sales, and new approaches to land acquisition.
The findings also show a strong interest in timely information. Builders want better data on material and labor costs, consumer behavior and design trends—insights that can help inform business decisions.
Many homeowners do not plan to move in the coming year. Some are comfortable where they are; others are reluctant to give up a lower mortgage rate. Staying put is helping sustain interest in home improvements, with comfort, home value and aging in place among the motivations for upgrades.
Energy efficiency and indoor air quality are part of that picture. Survey respondents identified heating and cooling systems, indoor air quality, and windows, doors and siding as leading priorities for sustainable upgrades.
Homebuyers show more optimism about the market than homeowners, but that optimism does not necessarily translate into a purchase. Nearly two-thirds of surveyed buyers do not plan to buy in 2027. Those who do are often looking for a detached home at a moderate price point—one that may be difficult to find in many markets.
For builders and manufacturers, understanding this gap between buyer aspirations and affordability constraints may help reveal where product, design and delivery strategies need to change.
The report’s findings point to a market under pressure, but not standing still. Builders are exploring new products and processes, homeowners are investing in the homes they have, and buyers continue to look for a path to ownership.