K-shaped housing: regional and segment divergence emerges from inventory reset

About this episode

The episode discusses the K-shaped recovery in the housing market, highlighting regional disparities and the importance of supply discipline.

Don't shut the door yet; housing supply discipline turning Consistent with the U.S. economy as a whole, the housing and building products markets are stronger in the high end, and weaker in the entry-level. Regionally, there are shades of this as well. Our new housing heatmap shows that the New York and San Francisco metro areas are among the strongest. Rafe discusses the drivers behind the regional disparities, the importance of supply and how certain markets that have been dealing with excess supply may get a bit of relief as builders are demonstrating discipline. Rafe also compares fundamentals for homebuilders to those for building product companies and why exposure to less discretionary projects like roofing can make certain building product companies attractive investments. Finally, we touch on housing policy where many potential solutions have been floated but where challenges persist. We discuss why meaningful action so far has been limited, partly due to structural dynamics You may also enjoy listening to the Merrill Perspectives podcast, featuring conversations on the big stories, news and trends affecting your everyday financial life. "Bank of America" and “BofA…

People in this episode

Guest: Rafe

Topics covered

• housing market
• regional disparities
• supply discipline
• homebuilders
• building products
• housing policy

Keywords

• housing supply
• inventory reset
• high end market
• entry-level market
• building products
• homebuilders
• housing policy

Mentioned in this episode

Organizations: Bank of America, BofA Securities

Places: New York, San Francisco, U.S.

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