10 Best Residential Construction Stocks to Buy

3. D.R. Horton, Inc. (NYSE:DHI)

Number of Hedge Fund Holders: 60

D.R. Horton, Inc. (NYSE:DHI) is a Fortune 500 company that engages in the construction and sale of high-quality homes. The company started off with its first home in 1978 in Fort Worth and has closed over 1,100,000 homes in its 46-year history. Other than homebuilding, the company offers services such as mortgage, title, and insurance. DHI operates in 126 markets in 36 states across the country.

D.R. Horton, Inc. (NYSE:DHI) has a clear dominance in the American homebuilding market as it has been the largest homebuilder by volume since 2002. The homebuilder’s market share shows its strength, with approximately one out of seven new single-family homes in the United States built by DHI. As of September 30, 2024, D.R. Horton is the largest builder in 5 of the top 7 US housing markets and in 61 of the 125 markets in which it operated.

DHI has demonstrated a track record of consistent financial performance. The recent first fiscal quarter of 2025 is evidence, as the homebuilder achieved or exceeded guidance across all metrics. DHI recorded a consolidated pre-tax income of $1.1 billion alongside a pre-tax profit margin of 14.6%. This made it return $1.2 billion to shareholders through share repurchases and dividends during the quarter. Demographics supporting housing demand remain strong and continue to benefit the homebuilder.