馃彙 GENTRIFICATION: HOME BUILDERS 馃彙
On of the most recent problems is the gentrification.This is the name given to the process by which people living in an area, generally from low- and middle-class backgrounds, are displaced by other groups with greater economic means. The main causes are focused on: lost of power parity purchasing and poor urban distribution and management policies [See: https://jjplindex.blogspot.com/2025/07/gentrificacion-lo-que-no-te-diran.html ]. However, acknowledging this would have a high political cost for any official.
Therefore, coupled with the "new" global wave of state absolutism, they are trying to solve the problem with the expansion of public spending. If the excessive public deficit, among other causes, has led to the loss of purchasing power, then through more spending and deficits, they are trying to build housing and "solve the problem."
Expanding the housing supply, if accompanied by other policies (such as reducing inflation, strengthening the domestic market, innovation and development in production, improving educational quality, reorienting districts, etc.), could be effective. The question is: will all governments achieve this?
Meanwhile, the chart shows the world's leading publicly traded homebuilders in the US, Europe, and Latin America. American companies are performing well. At least since Biden's arrival, public spending has been authorized to expand until 2028, and Trump is unlikely to halt this trend. Therefore, this sector could be relevant, especially if the population pushes for housing, as is the case in China, where many people own homes (not considering the collapse of the real estate sector).
A high ROCE (Return on Capital Employed) and a low Net Debt-to-EBITDA ratio are important. However, despite an average correlation of ≈-47%, low debt could only be a cause of ROCE in ≈22%. Therefore, other variables must be considered for any investment decision.
The best analysis is yours!
J. Joel Padilla
https://jjplindex.blogspot.com/
https://whatsapp.com/channel/0029Va9EHFk8fewujZelbM3t
https://www.linkedin.com/in/joelpadilla/recent-activity
t.me/JJPL_Index
Copyright: Joel Padilla 2025
On of the most recent problems is the gentrification.This is the name given to the process by which people living in an area, generally from low- and middle-class backgrounds, are displaced by other groups with greater economic means. The main causes are focused on: lost of power parity purchasing and poor urban distribution and management policies [See: https://jjplindex.blogspot.com/2025/07/gentrificacion-lo-que-no-te-diran.html ]. However, acknowledging this would have a high political cost for any official.
Therefore, coupled with the "new" global wave of state absolutism, they are trying to solve the problem with the expansion of public spending. If the excessive public deficit, among other causes, has led to the loss of purchasing power, then through more spending and deficits, they are trying to build housing and "solve the problem."
Expanding the housing supply, if accompanied by other policies (such as reducing inflation, strengthening the domestic market, innovation and development in production, improving educational quality, reorienting districts, etc.), could be effective. The question is: will all governments achieve this?
Meanwhile, the chart shows the world's leading publicly traded homebuilders in the US, Europe, and Latin America. American companies are performing well. At least since Biden's arrival, public spending has been authorized to expand until 2028, and Trump is unlikely to halt this trend. Therefore, this sector could be relevant, especially if the population pushes for housing, as is the case in China, where many people own homes (not considering the collapse of the real estate sector).
A high ROCE (Return on Capital Employed) and a low Net Debt-to-EBITDA ratio are important. However, despite an average correlation of ≈-47%, low debt could only be a cause of ROCE in ≈22%. Therefore, other variables must be considered for any investment decision.
The best analysis is yours!
J. Joel Padilla
https://jjplindex.blogspot.com/
https://whatsapp.com/channel/0029Va9EHFk8fewujZelbM3t
https://www.linkedin.com/in/joelpadilla/recent-activity
t.me/JJPL_Index
Copyright: Joel Padilla 2025
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