income builder 2021 24420.png
apartment REITs
homebuilders ETFs
single family rental REITs
manufactured housing REITs
student housing REITs
data center REITs
Cell tower REITs
net lease REITs
industrial REITs
storage REITs
office REITs
mall REITs
hotel REITs
Timber REITs
healthcare REITs
Billboard REITs
shopping center REIT
Casino REITs
cannabis REITs
farmland REIT investing
mortgage REITs
1/1

Explore our Real Estate Indexes

The Easy Way To Invest in Real Estate

RIET Hoya Capital High Dividend Yield ETF.png
HOMZ_Logo_Just Ticker.png
ETF express.png
  • Alex Pettee, CFA

Homebuilders: Growth At Very Reasonable Prices

  • Left for dead early in the pandemic, the U.S. housing industry has been a consistent, steady-handed leader throughout the pandemic. After a summer lull, the positive momentum has again accelerated.

  • Record-low supply levels and robust single-family housing demand remains a secular tailwind. Rental markets were a brief reprieve from cost-pressures, but soaring rent rates have pushed households back towards ownership.

  • Homebuilders are selling homes as fast as they can be built, but that's not fast enough. Supply chain constraints have curtailed immediate upside, but may have prolonged the favorable cycle.

  • Profit margins have climbed to record highs as builders have more-than-offset cost pressures through higher sales prices. Scale remains a critical competitive advantage as the larger public builders continue to gain market share.

  • Growth At A Very Reasonable Price: Homebuilders remain an unloved sector, still trading at deep discounts to historical and market multiples - including mid-single-digit P/E ratios - despite double-digit earnings growth expected over the next several years.

Click Here To Read The Full Report on Seeking Alpha!