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A Kiplinger report describes publicly traded homebuilders and home-improvement retailers as possible ways to gain exposure to housing while sales and construction remain sluggish. It cites Berkshire Hathaway’s purchases and company fundamentals, but a recovery’s timing is uncertain and past performance does not guarantee future returns.
A Kiplinger report identifies homebuilders and home-improvement retailers as potential ways to invest in a U.S. housing recovery before one is visible, even as home sales remain slow and housing-related stocks have lagged the broader market. The report presents these companies as long-term investment ideas, not a near-term forecast: it says when buyers will return is uncertain, and investors could face further declines before any recovery.
The report points to Lennar, Taylor Morrison, NVR and D.R. Horton as homebuilder stocks to watch. It says Berkshire Hathaway acquired an 11% stake in Lennar during the period it describes as running from the beginning of 2025 through September 2026, while purchasing Taylor Morrison for $8.5 billion, including assumed debt, in July. The source’s dates are internally difficult to reconcile with its statement that the market data are as of September 30; readers should treat the stated timeline cautiously.
Kiplinger reports that Lennar had fallen from about $126 to the low $80s during the period described, and that its shares had lost more than half their value over two years. It also says NVR was down about one-third over two years. Those figures are historical observations from the report, not evidence that the stocks will rebound. Berkshire’s buying may interest investors, but the report warns that the company has made unsuccessful investments and has a long time horizon.
The report also discusses Home Depot and Lowe’s, whose businesses can benefit from home maintenance and renovation spending even when people are not buying homes. It says Home Depot shares were down 29.1% over the prior 12 months and more than $140 per share from a late-2024 high. The retailer had a 3.2% dividend yield at the time cited and announced its 158th consecutive quarterly dividend, though the payment was unchanged. These figures reflect the source’s reporting period and can change.
Ways to Gain Housing Exposure
The report matters to readers because weak housing activity does not affect every housing-related business in the same way. Homebuilders rely on construction and home sales, while retailers such as Home Depot also sell products for maintenance. That difference can shape how each company performs if sales stay depressed or recover unevenly.
Buying shares before a rebound is visible carries a trade-off: prices may already reflect pessimism, but a low valuation does not guarantee a recovery or protect against additional losses. The report’s examples are individual stocks, not a diversified or risk-free route into real estate. Investors need to weigh company-specific risks, market volatility, dividend changes and their own time horizon rather than treating Berkshire’s purchases as a recommendation.
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Why Housing Has Stalled
Kiplinger describes a market constrained by limited housing supply, high borrowing costs and rising construction expenses. The report says the average U.S. home is 42 years old, compared with 31 years in 2005, and that the share of homes built in the past decade fell from 18% in 2014 to 13% at the time of publication. It also attributes slow construction to zoning restrictions, labor shortages and higher material costs.
Mortgage rates add friction for owners who would need to give up older, lower-rate loans to move. The report says new mortgages could carry rates of 7% or more. It also reports that home prices had fallen in inflation-adjusted terms for 13 consecutive months. In that environment, sellers may hesitate to list and buyers may find prices unaffordable, leaving transactions subdued.
Performance data cited in the report underscore the strain: as of September 30, the S&P Select Industry Homebuilders Index had averaged 7.3% annual returns over five years, against 13.8% for the S&P 500, and trailed the broader index by 28.1 percentage points over the prior 12 months. These are past returns, and the report does not establish that the gap will close.
“I can’t be sure when Americans will get back to buying homes, so these are indeed stocks for the long run.”
— Kiplinger report
Recovery Timing and Investment Risks
No recovery date is established, and the report does not show that housing sales or construction have already turned upward. Its expectation that building will revive is an opinion based on demographic, economic and political pressures, not a guarantee. The pace and effect of possible zoning changes, tax credits or construction productivity improvements are also uncertain.
There are source-timing issues as well: the report references Berkshire purchases through September 2026 but also dates market data as of September 30, without making the year clear. The specific stock prices, returns and dividend yield are therefore best read as figures reported at the time, not current quotes. A company’s future results, share price and dividend may differ.
Signals Investors Can Monitor
Investors following the thesis can watch for changes in home sales, mortgage rates, housing starts, construction costs and builder earnings. Policy action on zoning or home-buying tax credits, if enacted, could also affect supply and demand, though the report does not specify when such changes might occur or how much they would move the market.
For individual investors, the next step is to compare each company’s finances, valuation and business exposure with personal goals and risk tolerance. The report advises considering how housing-related investments fit within a long-term portfolio; it does not offer a guaranteed path to gains. All cited performance is historical, and a financial professional can help assess options without removing market risk.
Key Questions
Which stocks does the report discuss?
It names homebuilders Lennar, Taylor Morrison, NVR and D.R. Horton, as well as home-improvement retailers Home Depot and Lowe’s. The article does not establish that any is suitable for every investor.
Does Berkshire Hathaway’s buying mean these stocks will rise?
No. Berkshire’s reported purchases are one data point, not a guarantee. Kiplinger notes that Berkshire has made investment mistakes and generally has a long time horizon.
When does the report expect housing to recover?
It gives no specific date. The author says the timing of renewed home buying is uncertain while expressing a long-term expectation that homebuilding will revive.
Are the performance and dividend figures current?
No. They are figures attributed to the report’s stated measurement periods, including market data dated September 30. Stock prices, returns and yields change over time.
Can home-improvement companies benefit if home sales stay slow?
The report says homeowners continue to need maintenance supplies, which can support retailers such as Home Depot even when transactions are weak. That business exposure does not assure strong share performance.
Source: kiplinger.com
