Oil Prices to Impact Homebuilding Stocks?
With 29% and 21% exposure for KB Home and Lennar, respectively, to Texas, in terms of community count, the potentially negative impact of lower oil prices on these homebuilders’ stocks will be something to keep an eye on moving forward. However, for those companies less exposed to oil dependent economies, cheap oil should prove to be a boon. While the overall impact will be difficult to gauge, some of the benefits could include – increased consumer purchasing power from lower gas prices; cheaper cost of homeownership due to decreased utility costs; lower materials costs from cheaper petroleum based raw material inputs and reduced transportation costs.
About author
You might also like
Toll Beats on Profits, Misses on Revenues
Toll reported Q2 2015 earnings of $67.9M, or 37 per cents per share, beating analyst estimates of 35 cents per share. Revenues came in lower than expected at $852.6M versus
New Homebuilding Publics
Among the cohort of new, publicly-traded homebuilders this cycle are UCP and Century Communities. In this Builder Magazine article, a deeper look is taken into the origins and philosophies of
Housing Industry Poised For More Growth In 2017
IRVINE, CA—A number of factors pull in this sector’s direction, such as jobs, household formations and a lack of supply supported by the demographics of Millennials and Baby Boomers, TRI
