I agree with you but as long as laws regarding 'building permits' spread across the country, the only people who will be able to build homes at a relatively reasonable price will be the large homebuilders. Thus, sales may go flat, but that is about it. With the low pe and the buybacks, the stock should get along fine.
People may be making less now but homes are still being bought. That is what you have to look at. If you base home sales on NAFTA it is too indirect. You should be looking at home sales.