Published on 19 May 2023 on Zacks via Yahoo Finance

3 Homebuilding Stocks to Buttress Your Portfolio

The longer-term factors driving the housing market should make you highly optimistic about the segment right now, even if the near-term outlook is not as exciting.

On May 10, the Conference Board stated that real GDP growth should come in at 0.7% this year, dropping to 0.4% next year. Consumer spending continues to slow as a result of inflation, while business spending continues to slow because rate hikes and labor market tightness are increasing costs for companies. Government spending, particularly on infrastructure, is a positive.

Another positive is the labor market, where the unemployment rate of 3.4% remains at historic lows. Job growth remains positive, with most of the additions inprofessional and business services, healthcare, leisure and hospitality, and social assistance. [BLS data]. A strong labor market means sustained consumption, as well as continued demand for housing.