In this piece, we will take a look at the five best residential real estate stocks to buy. If you want to take a look at what’s happening in the real estate industry right now, head on over to 10 Best Residential Real Estate Stocks To Buy.
5. PulteGroup, Inc. (NYSE:PHM)
Number of Hedge Fund Investors In Q1 2023: 36
PulteGroup, Inc. (NYSE:PHM) builds and sells different kinds of homes such as single family, townhomes, and condominiums. Average share price ratings for its stock place it close to a Strong Buy, and it has grown its earnings and revenue consistently for the past four years.
By the end of 2023’s first quarter, 36 of the 943 hedge funds polled by Insider Monkey had bought a stake in PulteGroup, Inc. (NYSE:PHM). Out of these, the firm’s largest shareholder is Natixis Global Asset Management’s Harris Associates with a $334 million stake.
Follow Pultegroup Inc (NYSE:PHM)
Follow Pultegroup Inc (NYSE:PHM)
4. Toll Brothers, Inc. (NYSE:TOL)
Number of Hedge Fund Investors In Q1 2023: 37
Toll Brothers, Inc. (NYSE:TOL) is one of the biggest home building companies on our list, with the firm making and selling different kinds of homes in luxury communities. It announced a 21 cent dividend in July and has an average recommendation rating of Buy.
37 of the 943 hedge funds part of Insider Monkey’s database had invested in the firm as of March 2023. Edgar Wachenheim’s Greenhaven Associates is the largest hedge fund investor, owning 5.3 million shares that are worth $320 million.
Follow Toll Brothers Inc. (NYSE:TOL)
Follow Toll Brothers Inc. (NYSE:TOL)
3. NVR, Inc. (NYSE:NVR)
Number of Hedge Fund Investors In Q1 2023: 39
NVR, Inc. (NYSE:NVR) both builds and sells homes and other residential properties as well has provides mortgage services. It is also known for having a low number of shares available for public trading, alongside a massive share price of $6,286.
As this year’s first quarter ended, 39 of the 943 hedge funds surveyed by Insider Monkey had held NVR, Inc. (NYSE:NVR)’s shares. The company’s largest investor in our database is Ric Dillon’s Diamond Hill Capital with a stake worth $606 million.
2. D.R. Horton, Inc. (NYSE:DHI)
Number of Hedge Fund Investors In Q1 2023: 46
D.R. Horton, Inc. (NYSE:DHI) is another large construction company, and one with more than ten thousand employees. It is a rare real estate company that actually moved up on the Fortune 500 list in 2023, from 124 in 2022 to 120 this year.
After sifting through 943 hedge funds for their March quarter of 2023 shareholdings, Insider Monkey discovered that 46 had invested in the firm. Edgar Wachenheim’s Greenhaven Associates is D.R. Horton, Inc. (NYSE:DHI)’s largest shareholder out of these since it has a $356 million investment.
Follow Horton D R Inc (NYSE:DHI)
Follow Horton D R Inc (NYSE:DHI)
1. Lennar Corporation (NYSE:LEN)
Number of Hedge Fund Investors In Q1 2023: 51
Lennar Corporation (NYSE:LEN) is another large residential construction firm, building both single and multi family properties. 13 of the 22 analysts following the stock have rated it either a Buy or Strong Buy.
46 of the 943 hedge funds part of Insider Monkey’s Q1 2023 database of 943 hedge funds had bought and owned a stake in Lennar Corporation (NYSE:LEN). Out of these, the largest investor is Edgar Wachenheim’s Greenhaven Associates with a $956 million stake.
Follow Lennar Corp W (NYSE:LEN, LEN.B)
Follow Lennar Corp W (NYSE:LEN, LEN.B)
Disclosure: None. You can also take a look at 10 Dirt Cheap Stocks To Buy and 15 Biggest Construction Companies in the World.
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
