10 Best Residential Real Estate Stocks To Buy

2. Lennar Corporation (NYSE:LEN)

Number of Hedge Fund Holders: 60

Lennar Corporation (NYSE:LEN) is another prominent American home builder that constructs affordable, move-up, and active adult homes under the Lennar brand name. The company offers mortgage financing, title, and closing services under its Financial Services segment while mortgage loans are originated by LMF Commercial. Lennar’s Multifamily segment develops high-quality multifamily rental properties.

Lennar falls among the nation’s largest builders of quality homes with its 70 years of operation and in terms of deliveries, revenues, and net earnings. Homebuilding operations are the most substantial part of Lennar’s business and generated $33 billion in revenues in fiscal 2023. The firm has been resilient against the uncertain microenvironment. The company grew in its current markets by pricing homes based on demand at levels that would maintain the sales pace, also known as the dynamic pricing model. Furthermore, the firm’s strong balance sheet and solid liquidity enable sufficient financial flexibility as it moves ahead.

Lennar continues to drive momentum through 2024. Although interest rates rose for most of the second quarter, the home builder remained resilient and performed well. The firm recorded a 19% increase in new orders and a 15% increase in deliveries year-over-year. In homebuilding, revenues increased 9% to $8.4 billion as compared to $7.6 billion in the prior year period. The firm is on target to deliver approximately 80,000 homes for the year while it plans to completely move to a pure-play and land-light operating structure across its homebuilding platform and each of its 40 homebuilding divisions, to drive better growth and cash flow.

The status of a leading American homebuilder, the capability of building affordable housing in strategic markets addressing the existing supply deficit, and a strong balance sheet deem Lennar Corporation (NYSE:LEN) another top residential real estate stock to invest in.