12 Best Residential Real Estate Stocks To Buy According to Analysts

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9. Toll Brothers, Inc. (NYSE:TOL)

Average Upside Potential: 21.44%

Toll Brothers, Inc. (NYSE:TOL) was founded in southeastern Pennsylvania in 1967 by the brothers Bob and Bruce. The firm expanded across the United States over the years and emerged as America’s luxury home builder. Currently, TOL operates in 24 states and more than 60 markets nationwide.

Toll Brothers, Inc. (NYSE:TOL) is in a good spot with its widespread national footprint positioning it for growth, featuring the widest offering of luxury homes and catering to the most affluent customers in its industry. The Toll Brothers advantage setting the homebuilder apart comes from the prestigious and desirable locations it chooses to build in, the distinctive architecture of a Toll Brothers home, unrivaled choice, and exceptional customer service.

Some of the factors supporting demand for Toll Brothers include a limited supply of new and resale homes on the market, millennials in prime home-buying years, and a growing desire for high-quality move-in ready homes. The home builder saw 2024 as its strongest year ever, during which it witnessed a record $10.6 billion home sales revenue. For fiscal 2025, Toll Brothers is striving to boost its community count.

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