12 Best Housing Stocks to Invest in According to Analysts

9. Invitation Homes Inc. (NYSE:INVH)

Average Upside Potential: 19.94%

Invitation Homes Inc. (NYSE:INVH) is the largest single-family home leasing and management company in the United States. The firm offers various options for leasing an updated home in a desirable neighborhood. Invitation Homes purchased its first home in Phoenix in 2012, establishing a vertically integrated, single-family rental home company.

Invitation Homes Inc. (NYSE:INVH) has an attractive position as the premier single-family home leasing company in the country. INVH boasts a portfolio predominantly focused on high-growth markets and infill neighborhoods with proximity to jobs, transportation, and schools. Other than attractive locations, the two pillars around which the firm is strategically positioned are INVH’s unmatched scale and its eyes in the market through numerous in-house investment professionals and operations personnel. Differentiated locations, scale, and local expertise have driven the firm’s organic growth outperformance.

While the CEO Dallas Tanner believes in a constructive backdrop for the firm’s future considering the attractive value proposition of single-family rentals compared to homeownership, INVH’s new lease rent growth disappointed investors. It posted negative new lease growth of -1.3% in October 2024 as it faces increasing competition in the Built-to-Rent sector. Consequently, analysts at Jefferies downgraded the stock to Hold from Buy and trimmed their price target to $33 from $39. However, management remains optimistic about the situation deeming the current supply pressures temporary, with new build-to-rent deliveries expected to fall as much as 65% in 2025.