What is driving the robust U.S. housing market?

Several factors are supporting the strong U.S. housing market, including demographic trends (millennials entering prime home-buying years), a significant nationwide housing shortage estimated at millions of units, aging housing stock requiring renovation, and ongoing demand for more living space. These elements create sustained demand for both new construction and home remodeling projects.

How do housing market trends affect companies in this stock group?

Companies in this group benefit in different ways from housing market strength. Homebuilders like PHM and NVR directly profit from constructing and selling new homes. Material suppliers like BLDR and GMS see increased sales of construction materials. Component manufacturers like JELD (doors/windows) and TREX (decking) benefit when their products are included in both new builds and renovations. This diversified exposure helps capture value across the entire construction cycle.

What does TopBuild's success indicate about investing in homebuilding stocks?

TopBuild's decade of strong growth as a building materials installer demonstrates the resilience and long-term potential of the U.S. housing market. Their success suggests that companies throughout the homebuilding supply chain can experience sustained growth even through economic fluctuations. This provides a positive indicator for the broader sector and supports the investment case for companies that serve housing construction and renovation needs.

What are housing starts and why do they matter for these stocks?

"Housing starts" refers to the number of new residential construction projects beginning in a given period. It's a key economic indicator that directly impacts many companies in this stock group. Higher housing starts mean more business for homebuilders, more demand for building materials, and increased sales of housing components like windows, doors, and decking. When housing starts are strong or growing, it typically signals positive revenue opportunities for the entire homebuilding sector.

15 handpicked stocks

U.S. Homebuilding Expansion

A carefully selected group of companies positioned to benefit from America's strong housing market. These stocks span the entire construction value chain, from homebuilders to material suppliers and component manufacturers, all chosen by our expert analysts.

Han Tan | Market Analyst

Updated 2 days ago | Published at juillet 2