** Brokerage J.P. Morgan anticipates less supportive demand/supply environment for U.S. homebuilders in 2025

** Brokerage says key factors driving housing demand such as interest rates, job growth, and affordability are unlikely to see significant improvements in 2025

** J.P. Morgan says homebuilders' margin and ROE will likely fall in 2025

** Brokerage downgrades D.R. Horton DHI.N to "underweight" and both Toll Brothers TOL.N and Meritage Homes Corp MTH.N to "neutral"; cuts PTs for all three

** Brokerage upgrades Century Communities CCS.N to "neutral" from "underweight", citing "stock’s solid relative underperformance in 2024, down 7% vs our universe’s average 12% gain"

** Shares of TOL down 0.7% and DHI down 1.1% premarket

** "We also see the incoming Trump administration’s policies as potentially disrupting housing’s labor force, as immigrants account for the largest percentage of U.S. construction workers since 2004" - Brokerage

** As of last close, the S&P Composite 1500 Homebuilding Sub Index .SPCOMHOME up 10%, YTD

(Reporting by Rupali Chaudhary in Bengaluru)

((Rupali.Chaudhary@thomsonreuters.com))