The U.S. housing market recovery has been one of the most bullish stories in the global economy.
However, DoubleLine Funds' Jeffrey Gundlach thinks the party's over for homebuilder stocks.
At Monday's Sohn Investment Conference, he characterized single-family housing as "over-believed and over-rated."
Lately, multi-family homes like apartment buildings have a great place for investors as the demand for rentals continues to boom.
"Renting is more appealing across all age groups, all parts of the U.S., city, suburb, small town and rural," said he said.
Gundlach warned that the outlook for homeownership rates, which are near 19-year lows, is "bleak."
He made his case for shorting the homebuilder ETF (XHB) with his 38-slide presentation, which is loaded with charts on debt and housing.
Jeffrey Gundlach's Ira Sohn Presentation
Jeffrey Gundlach's Ira Sohn Presentation
Jeffrey Gundlach's Ira Sohn Presentation
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