1429 ET - A mix of current challenges in the economy and long standing ones in the US housing market present a potentially unique opportunity for home builders. Newly-built homes have been getting smaller since the pandemic, but potential buyers continue to be boxed out of the market as high mortgage rates have amplified affordability challenges. Smaller homes offer a potential solution for both sides, with Oppenheimer's executive director of equity research Tyler Batory noting builders can charge a lower price and in theory still get the same margin as a larger build. "If the demand is there, then all things equal, in theory, building smaller homes allows you to offer a little bit of a lower price point, you can reach a different targeted customer," adds Batory. (denny.jacob@wsj.com; @pennedbyden)
(END) Dow Jones Newswires
March 11, 2025 14:29 ET (18:29 GMT)
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