Industry Trends · via NAHB

The Biggest Challenges Builders Face in 2026, According to NAHB — A Charleston Perspective

NAHB's annual builder survey reads like a punch list of what every Charleston builder and developer already deals with day to day — but the national numbers give useful context for how much of it is a Charleston problem versus an everywhere problem.

What the Data Shows

65% of builders nationally still flag interest rates as a serious problem (down from 84% in 2025), and another 65% cite general economic uncertainty and employment concerns. Land costs and availability, labor shortages, and regulatory/permitting friction round out the top tier, with inflation concerns easing slightly to 46%.

Why This Matters Locally

Land cost and availability hit differently here than in most national markets — Charleston's peninsula, barrier islands, and closer-in submarkets like Mount Pleasant and Daniel Island have functionally no undeveloped land left at any price, pushing builders further out to Berkeley and Dorchester County to find buildable lots. Regulatory friction is also a distinctly local story: stormwater review, tree mitigation, wetlands delineation, and historic district guidelines add real time and cost here that a builder in a less environmentally regulated market simply doesn't face.

What This Means If You're Building or Buying New Construction

Buyers evaluating new construction should factor in that permitting delays are a genuine, not hypothetical, risk to closing timelines in this market — build in schedule cushion rather than assuming a builder's initial completion date holds. If you're building or developing, this is the year to lock land positions with entitlements already in hand rather than betting on speculative rezoning, since regulatory friction isn't easing even as rate pressure does.

Source: National Association of Home Builders, "Builders' Top Concerns 2026," February 2026. via NAHB

Considering new construction or a development project in Charleston? Contact Chris Eller directly for a realistic read on land, permitting, and timeline risk.