Homebuilders are capitalizing on a seemingly unquenchable thirst for new housing as buyers struggle with limited inventories and rising mortgage rates.

The S&P Composite 1500 Homebuilding sector hit a new 52-week intraday high Wednesday, nearing an all-time high set in December 2021 and is trading roughly 27% above its 200-day moving average. The group is the best performer in the index over the past six months and among the leaders this year, outperforming even growth industries, like tech.