10 Best Affordable Housing Stocks to Buy

1. Lennar Corporation (NYSE:LEN)

Forward P/E: 13.57

Number of Hedge Fund Holders: 63

On January 13, Goldman Sachs raised its price target on Lennar Corporation (NYSE:LEN) to $125 from $120 while maintaining a Neutral rating, citing mixed housing signals toward year-end. The firm’s channel checks suggest housing activity slowed into the fourth quarter, prompting builders to rely on higher incentives to sustain new-home closings, which in turn pressured gross margins despite modest revenue beats. Goldman added that while building product companies are generally positioned to meet conservative EPS guidance, upside in Q4 results may be limited by cautious 2026 outlooks amid reduced visibility into demand trends.

During Lennar’s fourth quarter 2025 earnings call, the company highlighted strong operational execution, delivering 23,034 homes and expanding its community count to 1,708, representing an 18% year-over-year increase. Lennar Corporation (NYSE:LEN) also improved efficiency by reducing cycle time to 127 days from 138 days and boosting inventory turns to 2.2x from 1.6x a year earlier. The balance sheet remains a key strength, with $3.4 billion in cash and total liquidity of $6.5 billion at quarter-end, alongside $3.2 billion returned to shareholders during fiscal 2025.

Founded in 1954 and headquartered in Miami-Dade County, Florida, Lennar Corporation (NYSE:LEN) is one of the largest homebuilders in the U.S., and its scale, liquidity, and operational discipline provide flexibility to manage near-term margin pressure while positioning the company to benefit when housing demand stabilizes.

While we acknowledge the potential of LEN as great affordable housing stock to buy, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LEN and that has 100x upside potential, check out our report about this cheapest AI stock.

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