KBW Housing Lunch - Highlights Strong Demand, Potential Homebuilding M&A

KBW stock analyst Jade Rahmani hosted an interesting and well attended industry update for investors, I appreciated the opportunity to participate. Details below:

"Today we met with national homebuilder Hovnanian Enterprises (HOV), single-family rental company Progress Residential (private), and industry expert Margaret Whelan (Founder and CEO, Whelan Advisory).

Takeaways. Our meeting struck a mostly positive tone toward the near- to medium-term housing outlook driven by: steady demand growth (including Spring sales/leasing) and favorable demographics, partly offset by labor and land supply/pricing as constraints. Participants cited homebuilding M&A as "fervent" including acquisition demand from Asian buyers. Finally, while acknowledging longer-term risks/uncertainties around rates, inflation, and administration policy, participants characterized demand for new homes and single-family rentals as strong/increasing.

Bottom Line. We believe recent housing trends remain positive, suggesting a likely strong Spring sales and leasing season. We have Outperform ratings on DHI, LEN, and SFR."