Cash In on a Housing Revolution

COVID-19 will change home buying for the better, in part by creating more homebodies.

(Image credit: Getty Images)

The Dow Jones industrial average posted its best quarter in 33 years on June 30, rising 17.8%. Big deal. Over the same period, the S&P Homebuilders Select Industry index was up 47.6%. The sector was devastated by COVID-19, and it is almost certain that builders’ revenues and profits will decline in this year of high unemployment and stay-at-home orders. But stock prices reflect expected, not current, earnings. Investors are looking to the future, and they like what they see. In fact, we may be on the brink of a housing revolution.

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James K. Glassman
Contributing Columnist, Kiplinger's Personal Finance
James K. Glassman is a visiting fellow at the American Enterprise Institute. His most recent book is Safety Net: The Strategy for De-Risking Your Investments in a Time of Turbulence.