Sitting on homes? How to turn a slower market into smarter buying

Homes are taking longer to sell, and every extra day can put more pressure on your balance sheet. Construction loan interest, taxes, insurance, utilities and upkeep don’t stop while a completed home waits for the right buyer.

At the same time, material costs aren’t giving builders much relief. Supply constraints and continued pricing uncertainty have made it difficult to predict what the next build will cost.

That leaves builders squeezed on both sides: Cash tied up in unsold inventory and ongoing pressure to reduce material costs on future projects.

You can’t control when a buyer walks through the door, but you can take a closer look at what you’re paying for the materials going into your next phase of homes.

The real cost of a home that won’t sell

A slower sale delays revenue as well as keeping cash tied up in a home that has already consumed labor, materials and financing.

Builders are also using more sales incentives to move inventory. In March 2026, 64% of builders offered incentives, while 37% cut prices by an average of 6%.

Those costs can add up while a home sits. Here’s what builders may continue paying:

• Construction loan interest
• Property taxes
• Insurance
• Utilities
• Maintenance and upkeep
• Sales incentives or price reductions

The longer inventory sits, the more important it becomes to protect the margin on the homes you’re building next. That makes purchasing strategy an important lever when other parts of the market are harder to control.

Why waiting for cheaper materials isn’t a strategy

In a typical slowdown, builders might expect weaker demand to eventually pull material prices down. Today’s market isn’t that simple.

Tariffs are adding another layer of pressure to construction costs. NAHB estimates recent tariff actions could add an average of $10,900 to the cost of a new home, and more than 60% of builders surveyed reported higher costs as a result.

Material costs are also moving in ways that make planning difficult. In April 2026, NAHB reported that 70% of builders were having difficulty pricing homes because of uncertainty around material costs.

The takeaway is straightforward: Waiting for the market to hand you lower costs leaves too much outside your control.

A better approach is to look for ways to create more purchasing leverage now. That can include:

1. Reviewing where material costs are putting the most pressure on margins.
2. Comparing current pricing against available group programs and supplier incentives.
3. Looking for rebates that can reduce your total material cost after purchase.
4. Exploring committed buys or price protection when they fit your pipeline and purchasing needs.

These steps won’t eliminate market uncertainty. They can give you a stronger position when pricing changes again, making purchasing one of the more actionable parts of your builder inventory strategy.

CBUSA’s “Winning in a tough economy” also explores how builders can protect profitability, improve purchasing efficiency and navigate rising costs.

How group purchasing can help reduce material costs

Independent builders don’t always have the same negotiating leverage as large national companies. Group purchasing changes the size of the conversation by combining the buying power of builders within a larger network.

CBUSA gives builders access to pre-negotiated pricing, manufacturer rebates and purchasing programs across national brands and local suppliers. Builders can choose the programs that make sense for their business while maintaining control over their purchasing decisions.

The savings can come from several places. Here’s how the model works:

• Collective buying power: Builders join a larger purchasing network that can negotiate from a stronger volume position.
• Competitive pricing: Members can access pricing programs designed to lower upfront material costs.
• Manufacturer rebates: Qualifying purchases can generate cash back after the sale.
• Committed buys and price protection: Certain programs can help builders create more predictability around future purchasing.
• Local supplier relationships: Builders can continue working with participating local suppliers rather than treating group purchasing as a replacement for every existing relationship.

The goal isn’t just to maximize rebates but to combine better pricing, rebates and purchasing programs to lower the overall cost of materials.

The savings can also become meaningful at scale. One CBUSA member reported receiving $1.7 million in rebate dollars alone, separate from additional savings tied to committed buys and other purchasing programs.

The financial impact can extend beyond the initial material savings, too. Brightwater Homes shared that it saves roughly $10,000 to $15,000 per home through CBUSA programs.

That added leverage matters even more when slower sales are already putting pressure on available capital.

Protecting cash flow while inventory sits

When completed homes take longer to sell, freeing up cash anywhere else in the business becomes more valuable. Reducing material costs on upcoming projects won’t immediately turn an unsold home into a sold one, but it can improve the economics of the work still moving through your pipeline.

Group purchasing can support cash flow in several ways. Here’s where those savings can make a difference:

1. Lower upfront costs can reduce the cash committed to future projects.
2. Rebates can return money on qualifying materials you’re already purchasing.
3. Better purchasing leverage can help protect margins when market pricing remains unpredictable.
4. More predictable costs can make it easier to plan the next phase of construction.

The impact goes beyond the price of an individual purchase. Consistent purchasing leverage can help builders keep more cash available for the projects and opportunities that need it.

Frequently asked questions

Turn a slower market into a smarter buying strategy

Slower sales and elevated material costs create a difficult combination. Builders can end up carrying unsold inventory longer while facing continued uncertainty about what the next phase of homes will cost.

You can’t control every market condition, but you can control how strategically you buy. Group purchasing gives builders another lever to pull by creating access to stronger pricing, rebates and purchasing power that would be difficult to build alone.

When cash is tied up in homes that are taking longer to sell, finding ways to reduce material costs and lower carrying costs can help free up more flexibility across the business.

If you’re looking at your builder inventory strategy and wondering where you can create more purchasing leverage, explore a CBUSA membership and see what group pricing and rebate programs could mean for your next phase.