What will the housing market look like in 2027? New COGNITION Smart Data research finds builders facing higher material, labor, and land costs, while many homeowners are staying put to hold onto low mortgage rates. That’s creating demand for upgrades that improve comfort, energy efficiency, indoor air quality, aging in place, and home value.
Buyers may be more optimistic, but nearly two-thirds say they don’t plan to purchase a home next year—and affordability remains a major hurdle for those who do. The report explores how builders, buyers, and homeowners are adapting, and where opportunities may emerge. Read the free 2027 Outlook report.
The purchase price tells only part of the affordability story. Zillow and Thumbtack estimate that property taxes, homeowners insurance, and maintenance add about $1,380 a month to the typical U.S. homeowner’s costs—roughly $16,600 a year. Those expenses have risen 32% over five years, with insurance up 54%. In 19 of the 30 metro areas studied, insurance premiums increased at least 50%. These ongoing costs can shape whether a home remains affordable long after closing. Read the analysis:
At the same time, solar and battery storage may be helping hold down wholesale electricity prices, even as demand rises. The Solar Energy Industries Association (SEIA) reports that average summer wholesale prices fell 42% in Texas and 51% in California between 2021 and 2026, as solar generation grew and battery capacity expanded.
SEIA estimates the resources saved customers billions this summer compared with 2021. Residential bills still rose, driven largely by transmission and distribution costs, but the findings point to the role solar and storage can play in reducing the cost of generating electricity. See SEIA’s analysis.
Google is also looking to flexible energy resources to meet growing demand. In partnership with Voltus, the company is developing a virtual power plant for the Mid-Atlantic grid that could provide up to 1,070 megawatts of capacity. Smart thermostats, batteries, and businesses shifting electricity use could combine to reduce demand during peak periods. The approach could add capacity faster than building power plants, though its effectiveness depends on customer participation and grid operators being able to count on those reductions when needed.
Factory automation is gaining a larger foothold in homebuilding, too. Promise Robotics has signed a multiyear agreement with D.R. Horton to support production of more than 1,250 homes. Its Factory-as-a-Service model combines robotic manufacturing, factory operations, and onsite installation, giving builders access to automated production without requiring them to build and operate their own factories. D.R. Horton says it is looking for ways to improve cycle times, expand capacity, and make construction more predictable.
For builders planning projects in 2027, the Department of Energy has updated its Efficient New Homes Program, formerly known as Zero Energy Ready Home. The changes apply to projects with permit dates on or after January 1, 2027. They include continued acceptance of Indoor AirPlus Version 1 through 2028, revised California energy requirements, simpler multifamily documents, and updated Phius options for multifamily projects. Builders and raters can review the program changes before planning for the new year:
In Washington State, officials are weighing whether wildfire survivors should be allowed to rebuild under older energy codes. Gov. Bob Ferguson says the option could reduce upfront costs for families facing large insurance gaps. Supporters of current standards point to lower utility bills and reduced emissions over time, while builders and local officials warn that construction costs and borrowing rates could make rebuilding out of reach for some families. The state building code council is considering the proposal and narrower alternatives, with a vote expected as soon as October 30. Read about the debate:
Builders, architects, contractors, and code officials can also sharpen their building science skills through Learning Edge’s free two-part short course, “Maximizing Performance with Unvented Attics.” Part 1 takes place November 10 or 12, with sessions at 9 a.m. or 1 p.m. Arizona time; Part 2 follows November 17 or 19. The one-hour sessions cover building science, insulation options, and code requirements. Continuing education credits are available from ICC, BPI, RESNET, and ASHI for participants who complete both parts. Register for the unvented attic course.
How should the industry measure a home’s value?Nearly 50 housing leaders gathered at Green Builder Media’s second annual Leading from the Front event to explore how to move beyond price per square foot. Builders, appraisers, lenders, insurers, realtors, architects, and manufacturers made commitments for the next 90 days, 12 months, and 24 months to help bring the Value Per Square Foot framework to market.
Climate risk is adding urgency to that conversation. Wildfire exposure and rising insurance costs can make familiar measures, such as price per square foot and past sales, less useful for understanding a home’s real risk and resilience. In a new episode of The Valuation Metric, Sara Gutterman explores how communities can account for fire resilience, cleaner energy, and better building practices in how they assess housing value.
This week’s Editors’ Product of the Week is JinkoSolar’s Tiger Neo 5.0 residential solar module. The all-black, 48-cell panel is designed for a lower-profile look and delivers up to 510 watts, with a stated efficiency of 25.52%. JinkoSolar says its temperature coefficient is designed to support performance in hot conditions.
And for a Halloween home tour, Zillow has rounded up seven listings with histories and features that are hard to forget: a former funeral home, a Sleepy Hollow colonial, a haunted-tour mansion, a home with a bomb shelter, and a Gettysburg farmhouse believed to have served as a Civil War field hospital. Which would you buy—and which would you avoid after dark? Watch the Zillow spooky house tour.
Watch the full This Week’s Sustainable Building News episode here or wherever you get your podcasts. Read the weekly green news script here. Have a great sustainability news tip or trend to share? Send it to Cati O’Keefe at cati.okeefe@greenbuildermedia.com or submit it to be considered as a guest blog.
November 4–5: Build Expo Show, Los Angeles
November 4–5: The Building Products Customer Workshop, Nashville
November 4–6: 2026 Design-Build Conference and Expo, Cleveland
November 18: 2026 Southwest Utility Energy Efficiency Workshop, Santa Fe
November 16-18: AHF Live: The Affordable Housing Developers Summit, Chigaco
November 18–20: 1st International Online Conference on Sustainable Construction (GO BUILD 2026) (Virtual)
December 9: International Conference on Sustainable Architecture and Urban Design Engineering (ICSAUDE), New York
January 28-29: ICGBS 2027: 21. International Conference on Green Building and Sustainability, New York
February 2-4, Design & Construction Week 2027 (IBS & KBIS), Las Vegas
March 1-5, 2027, ASCE2027: The Infrastructure and Engineering Experience, Philadelphia
April 5–8, 2027: National Home Performance Conference & Trade Show, Austin