The US housing market is seeing prices rise as demand for homes, especially in the suburbs, has increased. With the ongoing vaccination program and the economy looking to return to its former form, more people seem to be choosing to move from urban locations to the suburbs. Post-pandemic demand for large purchases is happening in the US housing industry, leading to a sharp rise in the share prices of real estate builders and companies involved in related activities.
According to Knight Frank’s Global House Price Index, a means of benchmarking average prices in 56 countries and territories, house prices worldwide are rising at the fastest pace since the fourth quarter of 2006 and are up by 7,000,000 in the year to March 2021. up 3%.
India dropped 12 places in the global house price index to 55th in Q1 2021, from 43rd in Q1 2020, with a 1.6 percent year-on-year (YoY) decline in house prices, according to Global House Price Index – Q1 2021. Demand for new homes has yet to pick up in India and it remains to be seen when the sector will regain its mojo.
However, the US home industry paints a different picture, and according to the Global House Price Index report, the United States witnessed the highest annual price growth since 2005, rising 13.2 percent year-over-year.
With prices rising on the back of strong demand comes the attractive growth story in the stocks of the companies representing the sector. An S&P index of 16 builders was up nearly 250 percent between March 2020 and early May, as the housing market proved one of the rare bright spots in a pandemic-crippled economy, a Bloomberg report shows.
Here are some US homebuilders’ stocks in the businesses involved in home buying in addition to their other commercial activities.
Lennar (LEN) Share Price – $98.80
Market Capitalization: About $31 Billion
Lennar is a leading new home building company and Lennar’s (LEN) stock price has risen nearly 58 percent in the past 12 months.
DR Horton (DHI) Stock Price – $89.57
Market Capitalization: About $32.29 Billion
DR Horton is a housing company and DHI’s share price is up nearly 57 percent in the past 12 months.
United Rentals (URI) Share Price – $317
Market cap: about $22.98B
United Rentals is the world’s largest equipment rental company, and URI’s share price is up nearly 108 percent in the past 12 months.
Otis Worldwide (OTIS) Share Price – $83.82
Market Capitalization: About $35.97 Billion
Otis Worldwide IS the world’s leading elevator and escalator manufacturing, installation and service company. OTIS’ stock price has risen nearly 47 percent in the past 12 months.
Sherwin-Williams (SHW) Share Price – $275.33
Market cap: about $73.46B
The Sherwin-Williams Company supplies the best in paint and coating products to the world, and SHW’s stock price is up nearly 43 percent in the past 12 months.
While the Nifty real estate index has more than doubled since its March 2020 lows, diversifying into the US housing market by investing in the best US homebuilder stocks can cushion one’s portfolio. If you want to buy this or any other US stock, you can access an international brokerage platform by opening an account with them. Opening a trading account in the US is simple, easy and can be completed in a few days. Buying stocks is much easier than buying a house!
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