The Daily Build: The Long and Winding ROAD to Housing Act

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The Daily Build: The Long and Winding ROAD to Housing Act

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25 Jun 2026 05:00:00 ET │ 11 pages

The Daily Build

The Long and Winding ROAD to Housing Act

CITI'S TAKE

Anthony Pettinari AC

In our daily, we highlight items of interest for Homebuilders, Building +1-212-816-4693

Products & Construction Materials investors: anthony.pettinari@citi.com

Bryan BurgmeierHomebuilders & Building Products sharply outperformed yesterday (+6.6% vs. S&P

-0.1%) boosted by lower rates/oil, constructive margin commentary from KBH, and bryan.burgmeier@citi.com

a general broadening out of the market, favoring cyclicals that have lagged since the Landry Moorestart of the Middle East conflict. We also view passage of the 21st Century ROAD to

Housing Act as a modest positive; while we don’t expect the act to meaningfully landry.moore@citi.com

boost housing production in ’26/27, investors likely welcomed the policy refocus on

housing affordability as Middle East conflict risks abate. While President Trump

scrapped the planned signing of the bill yesterday, House Speaker Mike Johnson

indicated he expects him to sign it within 10 days (Reuters, 6/24). Looking at the

broadening out theme, Buy-rated QXO stands out to us as the largest laggard in our

coverage since the start of the Middle East conflict (-29.3% since 2/27, vs. S&P

+7.0%); we see the close of the BLD acquisition (shareholder vote on Monday) as a

catalyst for the stock. QXO is currently trading 9.0x NTM EBITDA, a sharp discount

to peers (BLDR trading 10.8x) despite increased earnings visibility.

The sector outperformed yesterday despite the release of 2 fairly negative

datapoints; May New Home Sales missed sharply (580k vs. 655k FactSet cons) for

the second straight month, falling -6.8% Y/Y, as new home inventories rose +2%