There are a few reasons why Warren Buffett is betting big on the US housing market:
- Strong demand: The US housing market has been experiencing strong demand in recent years, driven by factors such as low interest rates, a growing population, and a shortage of affordable housing. This demand is expected to continue in the coming years, which could support home prices and rental income.
- Limited supply: The supply of housing in the US has been limited in recent years due to factors such as rising construction costs and delays in permitting and construction. This limited supply is expected to continue in the coming years, which could also support home prices and rental income.
- Investing in well-managed companies: Buffett is known for investing in well-managed companies with a track record of profitability. The homebuilders that Buffett has invested in are all well-established companies with a strong financial track record.
It is important to note that Buffett has not publicly stated his reasons for investing in the US housing market. However, the factors listed above are likely to be some of the reasons for his decision.
Buffett’s investment in the US housing market is a significant bet, but it is one that is based on his extensive experience and knowledge of the market. He is betting that the strong demand for housing and the limited supply will continue to support home prices and rental income in the coming years.