After yesterday’s carnage, a long-term view of the housing and real estate industry:
And the US stock market:
An important reason behind the underperformance of homebuilding stocks is the plummeting sentiment:
The number of workers employed in construction in the US is approaching pre-recession levels. This is an awesome tool by Bloomberg using the jobs report:
You can also look at the number of jobs vs average hourly wages through time:
This is from the always fascinating Hoya Capital. After looking at Q2 earnings numbers, let’s see how the market behaved year-to-date:
Good performance from the Manufactured Home, Student Housing and Lodging was able to pull back REITs in the black YTD, while Homebuilders are struggling.
An interesting dichotomy is the difference between the performance of Homebuilders and Residential REITs.