5 Best Homebuilder Stocks Sorted By Hedge Fund Sentiment

3. NVR, Inc. (NYSE:NVR)

Number of Hedge Fund Holders: 39

Pennsylvania-based home construction and mortgage services company NVR, Inc. (NYSE:NVR) ranks 3rd in our list of the top homebuilding stocks popular among elite hedge funds. As of the end of the last quarter of 2022, 39 hedge funds had stakes in NVR, Inc. (NYSE:NVR). The most notable hedge fund stakeholder of NVR, Inc. (NYSE:NVR) was Ric Dillon’s Diamond Hill Capital which owns a $534 million stake.

Ensemble Capital made the following comment about NVR, Inc. (NYSE:NVR) in its Q1 2023 investor letter:

“NVR, Inc. (NYSE:NVR) (+20.80%): Despite the large decline in home sales, a decline in home prices, and mortgage rates that are still twice as high as the lows of 2021, NVR’s stock is trading at its all-time high other than a brief period from December 2021 to January 2022. Our investment thesis on housing related stocks has been that the very low levels of new home building between the great financial crisis and COVID created a significant shortage of single family housing. While NVR, like all home builders, are seeing the impact of higher mortgage rates on their business, the inventory of existing homes on the market today stands at record low levels. The lack of existing homes available for sale, something we think will persist due to existing homeowners having locked in low mortgage rates and so not being interested in moving unless they have to, means that the home buyers who do want to buy a home will need to turn more frequently to the new home market.”