TMHC - What slowdown? J.P. Morgan homebuilding picks have 'years of strength' ahead

Investors have expressed some concerns about the sustainability of demand and pricing in homebuilding, after a strong early 2021 (and a summer pullback) - but J.P. Morgan is staying constructive, looking to a "solid industry backdrop in 2022-23 driving further earnings growth over the next two years." That's due to favorable demand drivers and some still-tight supply, the firm says, and affordability is actually "reasonable" relative to long-term averages. J.P. Morgan expects total housing starts to grow 4%, and single-family housing starts to grow 7%, both this year and next year, due to current supply-chain issues eventually subsiding. "Taken from another angle, we expect demand drivers – including job growth, consumer confidence and household formation – to remain favorable, while the supply backdrop should remain extremely tight, and in the event of loosening, should still be below normalized levels for some time," the firm says. But the Composite Affordability Index

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What slowdown? J.P. Morgan homebuilding picks have 'years of strength' ahead