Core Viewpoint - The housing market is facing challenges due to a perceived demand problem rather than a supply problem, which could negatively impact housing companies like KB Home [2][4] Company Analysis - KB Home has been downgraded by analysts amid concerns about the housing market and government policies aimed at increasing supply [2][3] - Despite the downgrade, there is a belief that housing stocks, including KB Home, could trade at higher multiples in the long term due to improved operations and competitive advantages [3][4] Industry Insights - Analysts argue that the current focus on supply-side solutions by the government may not address the underlying demand issues in the housing market [2] - The performance of builders like KB Home is being compared to peers, with the expectation that they will eventually receive a revaluation to higher multiples due to their operational improvements [4]