Skip to Content
US Videos

Top Stock Picks for Housing Growth

Although the housing market has several factors still working against it, these undervalued names are poised to benefit from supportive demographics.

Mentioned: ,

James Krapfel: Some of the recent housing data has been very mixed in our opinion. We saw a lot of weather-related weakness over the last few months. There will be some improvement more going forward post-weather, but still housing starts are well below normalized levels.

We believe there are a number of reasons that are at play here. One is that, mortgage availability is still quite tight when you look at the historical context. Second, housing affordability is still quite challenged. Home prices are up in the double digits, whereas mortgage rates are up still from year-ago levels and overall household income is still pretty stagnant. And then also the supply of homes both in existing- and the new-home side is very challenged, still. So that's really keeping volumes from recovering to closer to midcycle levels.

James Krapfel does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.