Housing Stocks Are in Depression Mode. Whirlpool Down 81%, Lennar Crashed 54% While the S&P 500 Soars.

"“The fact that the economy has been as resilient as it is, the fact that the stock market and spending has been what it is, despite the fact that one of the actual largest parts of the economy is in a depression... is remarkable,” Batnick said. Brown framed the supplier pain directly: “These companies that are suppliers to the housing market, they need turnover. They need more buying and selling.”"

"University of Michigan consumer sentiment sits at 53.3, recessionary territory, while the 10-year Treasury yield is back to 4.4%, keeping mortgage rates punishing. Meanwhile, SPY is up 27% over the past year. The contrast points to housing activity weakening even as broader markets and spending remain strong."

"Whirlpool is the poster child. Down 81% over five years, the appliance maker just reported a 9.6% revenue decline and North America EBIT cratering 96% to $6 million. CEO Marc Bitzer called it “recession-level industry decline,” and the company suspended its dividend to focus on over $900 million in debt reduction."

"Lennar fell from $185 in summer 2024 to $85. Q1 revenue was $6.62 billion, down 13% year over year, with gross margin on home sales collapsing to 15.2% from 18.7%. CEO Stuart Miller pointed to “high mortgage rates, constrained affordability, cautious consumer sentiment, and geopolitical uncertainty.”"

The S&P 500 reached new highs while a large part of the real economy remained depressed. Housing-adjacent companies declined despite stable home prices in major metros because the issue centered on transaction volume rather than price levels. Supplier businesses needed more buying and selling to generate turnover, but mortgage rates stayed high and consumer sentiment weakened. University of Michigan consumer sentiment measured 53.3, and the 10-year Treasury yield returned to 4.4%, keeping mortgage rates punishing. The stock market rose strongly over the past year, while specific housing-linked firms showed sharp declines. Whirlpool suffered major revenue and profit deterioration and suspended its dividend to reduce debt. Lennar’s results reflected weaker demand and margin compression tied to affordability constraints and cautious sentiment. Pool Corporation declined less because maintenance demand held up, while discretionary new-pool installs depended on home turnover.

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