The article discusses the performance of top homebuilders D.R. Horton and Lennar compared to the wider S&P 500 between August 2014 and August 2024. Analysts have downgraded the investment outlook for both companies, but some investors remain optimistic about the industry’s future performance. Industry observers note that top homebuilders’ market positions have strengthened since the 2007-2008 financial crisis, with lower levels of competition potentially contributing to the U.S. housing shortage. It highlights the impact of supply restrictions on slowing homebuilding and zoning proposals in the 2024 election.
##Highlights:
1. Shareholder returns for D.R. Horton and Lennar have outpaced the S&P 500 between 2014 and 2024.
2. Market positions of top homebuilders have grown since the 2007-2008 financial crisis.
3. Zoning proposals by Vice President Kamala Harris and former President Donald Trump may influence the pace of residential construction.
##Summary:
The article discusses the performance of top homebuilders, the impact of supply restrictions on slowing homebuilding, and zoning proposals in the 2024 election.
Editorial content by Jordan Fields
