Hurricane Milton To Deliver $2.5B Blow To Florida's Homebuilding Sector, Goldman Sachs Says
Portfolio Pulse from Piero Cingari
Hurricane Milton has significantly impacted Florida's homebuilding sector, with an estimated $1.7 billion to $2.5 billion hit. Major homebuilders like PulteGroup, Lennar, and D.R. Horton face potential delays in construction and home closings due to their exposure in affected regions. The building products sector may see a temporary spike in demand for repairs, but overall volumes are not expected to rise significantly.

October 14, 2024 | 4:51 pm
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NEGATIVE IMPACT
D.R. Horton may face construction delays in Florida due to its significant exposure in regions impacted by Hurricane Milton.
D.R. Horton has 11% of its 2023 closings in the affected areas, which may lead to delays in construction and home closings.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Lennar Corp. is likely to experience delays in home closings in Florida due to its significant market share in the affected regions.
Lennar has a large presence in Orlando and Tampa, with 14% of its 2023 closings in the affected areas, leading to potential delays.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 85
NEGATIVE IMPACT
PulteGroup faces potential delays in construction and home closings due to significant exposure in Florida regions affected by Hurricane Milton.
PulteGroup has 17% of its 2023 closings in the affected areas, leading to potential delays in construction and home closings.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
KB Home has minimal exposure to the regions affected by Hurricane Milton, with less than 3% of its closings in these areas.
KB Home's exposure in the affected regions is minimal, with less than 3% of its closings, reducing the impact of the hurricane.
CONFIDENCE 80
IMPORTANCE 20
RELEVANCE 30
NEUTRAL IMPACT
Toll Brothers has minimal exposure to the regions affected by Hurricane Milton, with less than 3% of its closings in these areas.
Toll Brothers' exposure in the affected regions is minimal, with less than 3% of its closings, reducing the impact of the hurricane.
CONFIDENCE 80
IMPORTANCE 20
RELEVANCE 30
POSITIVE IMPACT
TopBuild Corp. may experience a temporary increase in demand for insulation materials due to Hurricane Milton's impact.
TopBuild Corp. is involved in insulation materials, which may see a temporary demand increase for repairs post-hurricane.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
Carlisle Companies may experience a temporary increase in demand for roofing materials due to Hurricane Milton's impact.
Carlisle Companies is involved in roofing materials, which may see a temporary demand increase for repairs post-hurricane.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
Installed Building Products may see a temporary increase in demand for insulation materials due to Hurricane Milton's impact.
Installed Building Products is a key player in insulation materials, which are likely to see increased demand for repairs following the hurricane.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
JELD-WEN Holding may see a temporary increase in demand for windows due to damage from Hurricane Milton.
JELD-WEN Holding is a key player in windows, which are likely to see increased demand for repairs following the hurricane.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
Louisiana-Pacific Corp. may experience a temporary increase in demand for siding materials due to Hurricane Milton's impact.
Louisiana-Pacific Corp. is involved in siding materials, which may see a temporary demand increase for repairs post-hurricane.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
Mohawk Industries may see a temporary increase in demand for flooring materials due to Hurricane Milton's impact.
Mohawk Industries is a key player in flooring materials, which are likely to see increased demand for repairs following the hurricane.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
Owens Corning may see a temporary spike in demand for roofing materials due to Hurricane Milton's impact on Florida homes.
Owens Corning is a key player in roofing materials, which are likely to see increased demand for repairs following the hurricane.
CONFIDENCE 85
IMPORTANCE 50
RELEVANCE 60