Is the US housing market overvalued?

Share prices of single-family landlords, Invitation Homes, $INVH, and American Homes 4 Rent, $AMH, are trading at 35% and 20% discounts to their net asset values.

By comparison, in March 2022 when the Fed began rate hikes, $INVH was trading at a record 25% premium.

To put this differently, Invitation Homes’s share price now implies that average home prices should be ~$105,000 lower.

The housing market is disconnected from reality.

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Is the US housing market overvalued?

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