Looking at the long-term, David Valiaveedan, vice president of finance at Red Bank, Hovnanian (HOV) Enterprises Inc., points out that affordability remains grounded and housing starts are not matching population growth and household formation, reports Lorraine Woellert for Bloomberg.

“Not only are we severely under-producing the kind of 1.4 million average of the last cycle, but we’re way under-producing the long-term demand,” Valiaveedan said.. “We firmly believe we have a lot of runway ahead of us and a lot of opportunity.”

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Full disclosure: Tom Lydon’s clients own XHB.