Moody's: Homebuiling, Building Materials Outlook Stable for 2019

Moody's anticipates homebuilding and building materials will see revenue growth over the next 12 to 18 months

Moody's Investors Service
Home Building Single Family 2

Moody's has issued stable 2019 outlooks for the US homebuilding and building materials sectors. This stable view reflects rising mortgage rates and inventories. Highlights of the homebuilding outlook include:

  • Homebuilders’ revenues will grow 6% to 8% in the next 12 to 18 months
  • Rising mortgage rates and increasing home prices continue to eat into affordability
  • Inventory of new unsold homes has reached 7 months, highest in 7 years
  • But underlying fundamentals remain strong - low unemployment, high consumer confidence, GDP growth

The buildings materials sector also has a stable outlook thanks to a maturing construction cycle. Highlights of the building materials 2019 outlook include:

  • Operating income growth to moderate, coming in at or slightly below 7% in 2019
  • Private residential and non-residential construction growth is slowing
  • Public infrastructure spending remains robust

(View the entire Moody's Homebuilding and Building Materials 2019 Outlook...)