RBC Capital Turns More Cautious on Tri Pointe Homes, Inc. (TPH) Amid Challenging Housing Backdrop
We recently published an article titled 10 Best Affordable Housing Stocks to Buy.
On January 9, RBC Capital lowered its price target on Tri Pointe Homes, Inc. (NYSE:TPH) to $31 from $37 while maintaining a Sector Perform rating, reflecting a cautious outlook for the homebuilding sector heading into early 2026. The firm pointed to persistent affordability pressures, uncertainty around interest rates, policy shifts, and tariffs as factors likely to keep the group volatile. While RBC sees the potential for repair and remodeling demand to improve later in the year, it expects homebuilders to remain under pressure in the near term, with relative value appearing more attractive in select building products and distribution segments.
Despite the guarded macro backdrop, Tri Pointe Homes, Inc. (NYSE:TPH) delivered solid operational results in the third quarter of 2025. The company closed 1,217 homes, surpassing the upper end of its guidance, at an average selling price of $672,000, generating $817 million in home sales revenue. Looking ahead, management plans to expand its community count by 10% to 15% by the end of 2026, supported by increased activity in the Central and Eastern regions, which could help diversify geographic exposure and support longer-term growth.
Tri Pointe Homes, Inc. (NYSE:TPH), founded in 2009 and headquartered in Incline Village, Nevada, is a diversified homebuilder with operations across multiple U.S. markets, including the West, Central, and East Coast regions. In addition to home construction, the company provides financing and insurance services, offering a more integrated platform that may help support margins and customer demand through varying housing cycles.
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