Oil Prices to Impact Homebuilding Stocks?

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.

Read More

Previous The New Home Company Profile
Next Obama Cuts Mortgage Insurance Rates

About author

Steve Devorak
Steve Devorak 152 posts

Steve Devorak is a former Director of Land Acquisition and Project Manager with extensive experience in the Southern California land market.

View all posts by this author →

You might also like

Homebuilders / Land Developers

Pulte Misses Earnings Expectations

PulteGroup’s stock took a tumble after the company reported earnings that fell short of analysts’ expectations. The company reported earnings of 30 cents a share down 7 cents from the

Homebuilders / Land Developers

Todd Palmaer Named CEO and President of RSI Communities

Industry veteran, Todd Palmaer, who recently served as a Regional President for Standard Pacific Homes, has been named as the CEO and President of RSI Communities based out of Newport

Homebuilders / Land Developers

Toll Reports $70 Million Profit

Toll Brothers, Inc., Horsham, Pa. (NYSE:TOL) on Wednesday reported net income of $70.4 million, or $0.42 per share, for its first fiscal quarter ended Jan. 31, compared to net income