Top Rated Housing Stocks to Buy

     Housing Stocks to Buy for those that like real estate.

Housing has a disproportionate impact on the US economy because it is the most expensive item most of us will ever purchase. Housing accounts for roughly $3 trillion in annual spending in the United States or about 15% of the country's total domestic product.

Paying rent, buying a property, and paying for maintenance and improvements are all examples of housing-related spending. As a result, there are a variety of housing stocks to select for your investment portfolio. Many are cyclical, and others are particularly well-suited to income investors. Real estate investment trusts, or REITs, for example, are incentivized to pay hefty dividends by tax legislation.

The housing market's positive case

Why would you want to diversify your investment portfolio with housing-related stocks? Consider the following three long-term trends that should keep the sector growing for years to come:

-         Low mortgage rates: Mortgage interest rates have climbed from record lows, but they are still at rock bottom by historical standards. Low-interest rates encourage would-be purchasers to enter the market, allowing them to pay higher prices for their properties.

-         Rising demand for homeownership: Some millennials have grown up reluctant or unable to own a home. However, as this group grows older, the family formation will increase, as will the need for homeownership. Any support from the federal government to lessen the load of student debt should boost housing demand by making it easier for young people to buy their own homes.

-         Increased time spent at home: The COVID-19 pandemic has significantly increased the amount of time most of us spend at home, and many employees are expected to continue working from home, at least in part, once the epidemic has passed. The post-pandemic desire for homeownership is projected to rise as people spend more time at home. Household savings rates have also risen dramatically, allowing more money to be spent on housing expenditures.

The top stocks for homebuilding and housing: 

There are many rivals in each subsector of this wide category. Here are a few notable housing companies whose stocks would make excellent additions to an investing portfolio.

-         NVR (NYSE:NVR) is a premium homebuilder in the United States, having a portfolio that includes new-entry, move-up, and luxury houses. NVR has proven to be a disciplined risk manager throughout the years, eschewing the temptation to take on enormous amounts of debt to buy property in good times only to be saddled with too much debt during industry downturns. NVR is also involved in the mortgage industry, with origination fees accounting for up to 20% of the company's total profits. NVR has a market capitalization of $14.56 billion as of April 2022. By market capitalization, NVR is the 1174th most valuable company on the planet with a stock price of 4,335.45 USD per share.

-         LGI Homes (NASDAQ: LGIH) has been one of the fastest-growing companies in the sector because of its ability to capitalize on millennials' expanding demand for homeownership,. The company is cost-conscious, doing everything it can to keep the monthly cost of owning one of its homes within the range of the region's current rental rates. LGI has a large enough scale to compete on price in what has traditionally been the most price-sensitive area of the housing market. LGI Homes is well-positioned to maintain its rapid growth. LGI Homes has a market capitalization of $2.14 billion as of April 2022. LGI Homes is now the world's 3420th most valuable company by market capitalization with a stock price of 90.06 USD per share.

-         CareTrust (NASDAQ: CTRE) is one of many real estate investment trusts (REITs) that focus on a specific market area. Apartments are the focus of some REITs, while shopping centers and medical facilities are the focus of others. CareTrust invests in senior housing and care facilities, with around 200 institutions in its current portfolio. The company is a good investment because of demographic trends: the baby boom generation will cause the country's old population to explode over the next 25 years, resulting in a large increase in demand for senior living facilities. CareTrust REIT has a market cap of $1.70 billion as of April 2022. CareTrust REIT is now the world's 3696th most valuable corporation by market capitalization with a stock price of 17.52 USD per share.

-         Home Depot (NYSE: HD) is the housing company to own if you want your portfolio to be exposed to consumer spending habits once home purchases are completed. Those confined to their homes do extra modifications around the house, which has resulted in strong sales for the company throughout the pandemic. Expect more individuals to stay in their current homes and renovate rather than move because demand for homes is outpacing supply, which leads home prices to climb. This trend, which favors contractors, plainly benefits Home Depot as well. Home Depot has also re-integrated the industrial distributor and former partner HD Supply, giving the firm even more visibility to homebuilders and construction consumers. Home Depot has a market capitalization of $314.68 billion as of April 2022. Home Depot is now the world's 26th most valuable company by market capitalization with a stock price of 304.52 USD per share.

-         Redfin (NASDAQ:RDFN) is seeking to disrupt the traditional home-buying process by charging reduced sales fees and leveraging technology to make the process more efficient and cost-effective. Redfin competes with a number of direct competitors, but it stands apart by providing a wide selection of property buy and rental alternatives as well as auxiliary services such as mortgage origination. The national real estate market is extremely fragmented, with the top ten brokerages accounting for less than half of all transactions. Redfin, for example, is poised to develop quickly without stealing significant market share from the industry's stalwarts. Redfin has a market capitalization of $1.55 billion as of April 2022. Redfin is now the world's 3805th most valuable corporation by market capitalization with a stock price of 14.57 USD per share.

-         PulteGroup (NYSE: PHM) is a homebuilder in the United States that focuses on the South and West. Single-family detached homes, townhouses, condominiums, and duplexes are among the different home designs available. Centex, Pulte Homes, Del Webb, DiVosta Homes, American West, and John Wieland Homes and Neighborhoods are some of the company's most well-known brands. First-time buyers, retirees, and luxury buyers are among the populations targeted by each segment. PulteGroup has a market capitalization of $10.19 billion as of April 2022. PulteGroup is now the world's 1495th most valuable corporation by market capitalization with a stock price of 42.21 USD per share.

-         Tri Pointe Homes (NYSE: TPH) creates single-family connected and detached homes and sells them. Maracay Homes, Pardee Homes, Quadrant Homes, Trendmaker Homes, TRI Pointe Homes, and Winchester Homes are the company's six homebuilding sectors. It also offers a variety of financial services, including mortgage lending. The company is noted for its premium homes and communities, as well as unique, modern designs at a variety of pricing ranges, and operates in ten states. TRI Pointe Group has a market capitalization of $2.14 billion as of April 2022. TRI Pointe Group is now the world's 3418th most valuable corporation by market capitalization with a stock price of 19.92 USD per share.

-         Hovnanian Enterprises (NYSE: HOV) is a residential home builder that was formed in 1959. Single-family detached homes, attached townhomes and condominiums, urban infill, and active lifestyle residences are among the company's specialties. Homebuilding and financial services are the two segments in which it operates. Currently, the corporation operates in 14 states and has 124 different residential communities with a selection of homes for sale. Hovnanian Enterprises has a market capitalization of $0.28 billion as of April 2022. Hovnanian Enterprises is now the world's 5248th most valuable corporation by market capitalization with a stock price of 50.51 USD per share.

-         Cavco Industries (NASDAQ: CVCO) is an industry leader in the design and construction of prefabricated houses, modular homes, commercial structures, park model recreational vehicles (RVs), and vacation cabins. Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, and MidCountry are among the company's 26 homebuilding production lines spread across the country. Standard Casualty, CVCO's insurance arm, offers a number of insurance packages for manufactured home owners. CountryPlace Mortgage, the company's finance business, offers a variety of homebuyer financing solutions. Cavco Industries has a market capitalization of $2.16 billion as of April 2022. Cavco Industries is now the world's 3411th most valuable business by market capitalization with a stock price of 235.94 USD per share.