We scan through the latest data driving the housing sector and its implications for homebuilder equities.
We begin with the most recent data: permits, starts, and completions:
The latest data continue to show a housing sector that is meandering within a contraction. Historically, this type of weakness has largely been consistent with recessionary pressure:
However, the recomposition of the economy towards a greater contribution of technology and services consumption to growth has continued to mute the effect of housing weakness on the broader economy. Below, we show the estimated impact of the latest data on residential investment:
