S&P Global – Homebuilders and Developers Industry Credit Outlook, 2025

The report by S&P Global "Homebuilders and Developers Industry Credit Outlook, 2025" analyzes credit trends and economic factors affecting the homebuilding sector. This report highlights the persistent high prices of raw materials, with European cement prices significantly elevated. Despite high costs, construction activity in Europe remains robust. In the U.S., high mortgage rates continue to price out many buyers, reducing the share of first-time homebuyers. China's property sales are projected to decline due to rising inventory levels. The Brazilian homebuilding sector manages debt effectively, aided by government programs. Key risks include U.S. trade policies, geopolitical tensions, and high interest rates in Brazil, which may impact homebuilder margins and demand. The credit outlook for the U.S. homebuilding sector remains stable, with most ratings expected to remain unchanged over the next 18 months. The sector benefits from strong demand, tight supply, and effective cost management.