Something Is Breaking Beneath The US Housing Market
Housing's uncomfortable reality
US homebuilders are holding a massive trading range, but the fundamentals beneath the surface are becoming increasingly uncomfortable. Margins are shrinking, construction costs are rising, buyer traffic has collapsed, and inventories are building even as affordability remains deeply stretched. Meanwhile, a potentially hawkish Fed threatens to add another layer of pressure through higher rates. TS Lombard sees the risk of further homebuilder underperformance.