Could the housing market have a demand problem as well as a supply problem? J.P. Morgan strategist David Kelly argues that slower population growth could mean a much lower need for new homes than in the past. Based on his forecast of 800,000 people added annually and an average household size of about 2.5, Kelly estimates demographic demand at roughly 320,000 new homes a year—compared with about 1 million annually during the first two decades of this century. Other estimates find a substantial housing shortage, so the debate depends in part on how population growth, household formation, and vacant homes are counted.
Household spending data offers another measure of the affordability squeeze. Nearly half of U.S. household spending went to housing and food in 2025, the highest share in 15 years. Housing alone accounted for 33.9% of expenditures. A home’s purchase price is only one part of the cost; ongoing expenses shape what it takes to live there and the value it delivers over time.
Builders are responding to affordability pressures with larger incentives and price cuts. In October, 65% of builders surveyed by the NAHB reported offering sales incentives, and 43% cut prices—the highest share in NAHB’s 2020–2026 series. At Maple Ridge in Ave Maria, Fla., CC Homes is offering eligible buyers a Tesla Model 3 with a home purchase. Solar panels are also available as an option, and the promotion is scheduled to run through December 31.
There’s also a new question about who needs housing—and where smaller solar systems can fit into the energy mix. Plug-in solar, sometimes called balcony solar, lets users connect compact panels to a household outlet, but the rules vary by state. As of October 28, ten states had enacted laws addressing these systems. Connecticut and Maine, for example, have different requirements, while local building and fire codes, utility rules, and product certifications may also apply. Green Builder Media’s state-by-state map lays out the developing patchwork.
At the community scale, DTE Energy and sonnen are testing whether home batteries can help support the grid. Their two-year virtual power plant pilot will connect nearly 100 homes at Veridian, a 170-home community in Ann Arbor. The homes have solar, heat pumps, and batteries. The pilot will assess how coordinating those systems could help meet periods of high demand and support reliability.
The next model building codes also address changing risks and construction methods. The 2027 International Codes have completed their development cycle, with approved changes that include expanding flood-resistant design requirements to the 500-year floodplain, referencing standards for off-site construction, and expanding fire code coverage for residential energy storage systems. States and local jurisdictions will decide whether and how to adopt the model codes.
In the latest episode of The Valuation Metric, Sara Gutterman talks with sustainability strategist and author Andrew Winston about political headwinds, corporate greenhushing, pressure for short-term returns, and the opportunities and risks of AI. They discuss why the forces driving climate action remain, how markets could better account for environmental and social costs, and why resilience may be a strong business case for sustainability.
And New Natural Living, by Dominic Bradbury, brings together 20 projects by Michaelis Boyd Architects from the United States, the UK, Europe, and Africa. The publisher describes the book as an exploration of sustainable architecture, natural settings, and the connection between indoors and outdoors.
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 18: 2026 Southwest Utility Energy Efficiency Workshop, Santa Fe
November 16-18: AHF Live: The Affordable Housing Developers Summit, Chicago
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