Welcome to this week’s edition of Under the Radar.

One of the great advantages individual investors have over institutions is the ability to look where nobody else is paying attention.

Most of Wall Street is focused on artificial intelligence, quantum computing, cryptocurrencies, defense stocks, and whatever exciting story happens to dominate the financial news cycle this week. The money managers on television spend their days arguing about the same handful of mega-cap stocks while an entire sector of the economy sits largely ignored.

That sector is housing.

More specifically, the companies that will eventually benefit from solving America’s housing affordability crisis.

The headlines make it sound as if housing is an impossible problem. Politicians blame interest rates. Economists blame inflation. Industry groups blame regulations. Buyers blame prices. Sellers blame mortgage rates.

There is certainly some truth in all of those arguments.

However, the reality is much simpler than most people want to admit.

America does not have a mortgage problem.

America has a housing shortage problem.

The latest housing data confirms what many of us have suspected for quite some time. The housing market is not broken because nobody wants to buy homes. It is frozen because there are not enough affordable homes available for people to buy.

According to Redfin, only 28 out of every 1,000 homes changed hands during 2025, the lowest turnover rate in at least three decades. Existing homeowners are staying put because they refinanced at historically low mortgage rates during 2020 and 2021. Very few people want to trade a 3% mortgage for one closer to 6.5%.

The result is a classic supply squeeze.

People want homes.

People need homes.

People simply cannot find homes they can afford.

The median home price recently crossed $400,000 for the first time ever. Monthly payments remain near record levels. Meanwhile, the United States remains short more than 1 million homes by most estimates.

That shortage is the entire story.

The housing market is not suffering from a lack of demand. It is suffering from a lack of supply.

The encouraging part of the story is that there is actually a solution.

Build more homes.

Not luxury apartments.

Not million-dollar custom houses.

Not another government subsidy program.

Build millions of starter homes and first move-up homes.

For decades, the housing ladder worked remarkably well. Young families bought starter homes. As their incomes increased, they moved into larger homes. That movement created inventory and liquidity throughout the housing market.

Today, that ladder has essentially broken.

First-time buyers cannot find affordable starter homes.

Existing homeowners cannot find affordable move-up homes.

Nobody moves.

The entire system grinds to a halt.

Eventually, this problem gets solved the same way every supply shortage gets solved.

Builders build more homes.

That is where things become interesting for investors.

When most investors think about a housing recovery, they immediately look at the major homebuilders. There is certainly nothing wrong with that approach.

However, some of the best opportunities may actually be found one layer beneath the builders themselves.

Building-products companies are among the most neglected stocks in today’s market.

They are not exciting.

They are not glamorous.

Nobody is creating social media videos about windows, doors, countertops, or building components.

That is exactly why we should be paying attention.

These businesses have been caught in the crossfire of high interest rates, slowing construction activity, weak remodeling demand, and investor pessimism. Many now trade at valuations that imply housing weakness will continue indefinitely.

History suggests otherwise.

Housing demand does not disappear. Families continue getting married. Children continue being born. People continue relocating for jobs. New households continue forming.

Sooner or later, the housing shortage gets addressed.

When it does, several under-the-radar companies could experience enormous earnings growth.

One of the most interesting names is JELD-WEN (JELD).

JELD manufactures doors and windows used throughout residential construction. It is not a company most investors think about very often, but every new house needs doors and windows before it can be occupied.

The company has struggled through a difficult housing cycle, and investors have largely abandoned the stock. However, management has spent years restructuring operations and improving efficiency. If housing activity merely returns to historical norms, earnings power could look dramatically different from current levels.

Another fascinating opportunity is Caesarstone (CSTE).

The company manufactures engineered stone and porcelain surfaces used in kitchens and bathrooms around the world. Housing weakness and slower remodeling activity have hammered results. Investors appear to have written off the company entirely.

That may prove shortsighted.

When housing construction recovers, countertops will be installed in every one of those new kitchens and bathrooms. Housing cycles come and go. People never stop wanting attractive kitchens.

Then there is Quanex Building Products (NX).

This may be one of the most overlooked housing-recovery stories in the market today.

Rather than selling directly to consumers, Quanex supplies critical components used in windows, doors, cabinetry, and other building products. The company effectively sells picks and shovels to the housing industry.

I have always liked businesses that profit from industry activity regardless of which individual participant wins. Quanex benefits from new construction, remodeling activity, and broader housing-demand trends.

When housing activity improves, component suppliers often see orders accelerate before investors notice the recovery.

Finally, there is Arlo Technologies (ARLO).

At first glance, Arlo may seem like an unusual housing play. The company specializes in smart security cameras, video doorbells, and connected home-security systems.

However, modern housing increasingly includes smart-home technology as a standard feature rather than a luxury.

New homeowners want connected devices. Builders are incorporating more technology into homes. Subscription-based monitoring services create recurring revenue streams that can generate attractive margins.

Arlo offers investors exposure to both a housing recovery and long-term smart-home adoption trends.

None of these companies are household names among investors.

That is precisely the point.

The biggest investment gains rarely come from buying what everyone already loves. They come from identifying tomorrow’s winners while they are still sitting in the bargain bin.

The housing market remains frozen today. Builder sentiment remains weak. Affordability remains a challenge. Mortgage rates remain elevated. The headlines remain negative.

Those are exactly the conditions that often create the best long-term opportunities.

If America eventually builds the millions of starter homes and first move-up homes the country desperately needs, builders will benefit.

The suppliers to those builders may benefit even more.

Wall Street is obsessed with finding the next trillion-dollar technology company.

I am perfectly happy looking for a few forgotten building-products companies trading at depressed valuations while waiting for one of the most obvious supply-demand imbalances in the American economy to resolve itself.

Sometimes the most profitable opportunities are hiding in plain sight.