Dec. 21 at 6:24 AM
$NAIL $LEN $PHM $KBH $HD This home builder list is sorted on the most % drop from the 52 week high (the rightmost column).
As of late December 2025, homebuilder stocks are experiencing significant weakness primarily due to a "triple squeeze" on profit margins: plummeting affordability, rising construction costs, and weakening buyer demand.
While major builders like Lennar (LEN) and KB Home (KBH) recently reported earnings that beat analyst estimates on the surface, their stock prices have plummeted because their forward-looking guidance reveals a much darker picture for 2026.
Main factors dragging down the sector:
■ Margin Compression - builders are having to cut price and/or offer incentives
■ Affordability Crisis - 6+% mortgage rate keeps buyers away
■ Rising Input Costs - Tariff and labor shortages
In summary, ideal entry to homebuilders is when 30 year mortgage rate starts to dip below 5.75%, otherwise, until then this sector looks poised to go sideways or lower.
