The U.S. housing market is entering a new phase in 2025, and the signs are unmistakable: home builders are cutting prices, slashing incentives, and adjusting strategies as buyers retreat in the face of high mortgage rates and affordability challenges. According to a recent report by the National Association of Home Builders (NAHB), nearly 37% of U.S. home builders reduced home prices in June, marking the highest percentage in over a year.