Citi Says Land Is Expensive, But Homebuilders Are Making It Work
- Sector outperformed broader market last week, climbing 1.9%
- Land costs test builders but improved activity provides relief
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Homebuilders are not being held back by “stubbornly elevated” land costs, according to Citigroup analysts.
The sector is well-positioned for further volume growth into next year, analysts led by Anthony Pettinari said in a note to clients Monday. D.R. Horton Inc. and PulteGroup Inc. saw increased demand this quarter, with net order volumes rising 37% and 24% year-over-year, respectively.