10 Best Residential Real Estate Stocks To Buy

3. NVR, Inc. (NYSE:NVR)

Number of Hedge Fund Holders: 47

The American home builder NVR, Inc. (NYSE:NVR) is headquartered in Reston, Virginia. The company’s homebuilding operations sell and construct homes under three brand names including Ryan Homes, NVHomes, and Heartland Homes. NVR also operates a mortgage subsidiary for its home buyers whereas NVR Settlement Services subsidiary offers settlement and title services.

Historically, NVR, Inc. (NYSE:NVR) has been one of the market leaders in each of the markets where it builds homes. This has enabled the firm to achieve competitive advantages while experiencing a growth trajectory within these markets. The firm’s financial performance is a testament to its market-leading position. Over the decade, NVR has grown its top line by 8.81% and its bottom line by  19.64%.

Among its peers, NVR, Inc. (NYSE:NVR)  has a solid market capitalization of $29.01 billion. The firm kicked off the new year with a year-over-year profit increase of 14% despite the extremely tight housing market. The home builder is also remarked for its impressive return on equity of 39.54% which clearly indicates that the firm has proficiently generated profits and surpasses major competitors including Pulte, Toll Brothers, and Taylor Morrison by a prominent margin.

The business segments ‘homebuilding’ and ‘mortgage banking’ are a strength for the home builder. During the second quarter of 2024, homebuilding revenues rose 12% from $2.28 billion in 2023 to $2.55 billion in this quarter. New orders increased by 3% to 6,067 units as compared to 5,905 units in the second quarter of 2023. Income before tax from the homebuilding segment climbed 12% while income before tax from the mortgage banking segment went up by 23%, year-over-year.

More than 555,000 homeowners have trusted NVR for their families which reflects the home builder’s strength and reputation. As of Q2, the firm is held by 47 hedge funds thereby ranking on our list. Diamond Hill Capital is the largest shareholder in the company.