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

William Lyon Homes Releases Earnings Results, Misses Expectations

William Lyon Homes (WLH) announced its most recent quarterly financial results on Wednesday, Feb-22-2017. WLH reported $0.60 earnings per share for the quarter, missing the analyst consensus estimate by $-0.07.

Homebuilders / Land Developers

CalAtlantic Beats Estimates

CalAtlantic Group, Inc. (NYSE: CAA) on Wednesday after market close announced net income of $167.0 million, or $1.25 per diluted share, for the fourth quarter ended Dec. 31, 2016., compared

Homebuilders / Land Developers

Introducing CalAtlantic

Earlier this year, Ryland and Standard Pacific, two publicly-traded homebuilders, announced merger plans with a closing set for fall of 2015. Now, they have unveiled a new name for the