Anticipation of a recovery in the housing market has fueled investor interest in US homebuilders. The iShares US Home Construction ETF has risen by 20% over the past three months, hitting a record high. This reflects optimism that a combination of improving affordability and falling mortgage rates will ultimately lead to higher demand for new homes.
Regional Breakdown of Housing Starts
Regionally, housing starts surged 15.5% in the South, recovering from a slump caused by Hurricane Beryl in July, which had reduced construction to its slowest pace since mid-2020. The Midwest and West also reported gains in August, adding to the positive momentum in homebuilding activity.
