Builders FirstSource Is Building Incredible Value For Shareholders
Housing prices are skyrocketing. Much of this has to do with simple supply and demand. There is a ton of excess demand in the market and not enough single-family housing, which is pushing prices to their highest level ever. According to Realtor.com, the U.S. is short 5.8 million single-family residences.
With this in mind, the construction industry has entered a secular uptrend that should last for many years. Building products supplier Builders FirstSource (NYSE: BLDR) and its shareholders have a terrific opportunity to capitalize.
So how did we end up with such an imbalance between supply and demand? To answer this, we need to look back to the housing crisis of 2008 and the subsequent Great Recession. After the market crashed, there was little demand for new housing, what with all of the foreclosed homes available, so housing starts plummeted. Housing starts is the term used to describe new residential construction projects beginning in a particular period.
Source Fool.com
