In the latest instalment of Industry Insights, Anna Chong, Senior Credit Analyst, examines the US homebuilder market, headwinds facing the industry and the impact the Biden administration could have on the sector.
So far this year, the fundamentals of the US homebuilder market have been very strong, supported by low interest rates, demand for more space as the coronavirus pandemic drags on, amongst other factors.
Meanwhile, since the US Presidential election, focus has shifted to the Biden administration’s plans for housing – and what reforms can be achieved.
“Both first-time and luxury builders could benefit from different parts of his housing policy, if he [Biden] can get it through the Senate. In addition, we’ll have to see how much the top end of the market is affected by potential tax increases,” says Chong.
What factors are driving the strong conditions in the US homebuilding sector at present? To find out, watch the short video below.
