In this article, we will discuss: 10 Best Housing Stocks to Buy in 2026.
On April 20, Reuters reported that U.S. homebuilders expect another rough year, citing analysts who warned tariffs and the Iran war will compress margins as inflation keeps buyers away. According to Barclays analyst Matthew Bouley, “eventual inflation in development costs pipe, freight, and infrastructure facing new inflationary dynamics will be difficult for builders to pass on,” adding to margin pressure and reduced starts. Lennar CEO Stuart Miller said that tariffs and immigration concerns are driving up expenses, and that “the cost structure in the industry is pushing higher and is difficult to manage.” KB Home CEO Robert McGibney saw “some pressure on material costs from lumber.”
Analysts commented that builders are counting on perks such as mortgage rate buydowns to push up demand, as rates had risen to near 6.5% in early April. Barclays analyst Matthew Bouley said geopolitical tensions and rising interest rates are weighing on buyers this spring season. Evercore ISI analyst Stephen Kim described demand as “disappointing,” while Wells Fargo analyst Sam Reid said housing equities had underperformed the S&P 500 by 12 points since the conflict began.
With that said, here are the 10 Best Housing Stocks to Buy in 2026.
20 Worst Performing Housing Markets in the US
Methodology:
We used screeners to identify Best Housing Stocks and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
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10. Toll Brothers, Inc. (NYSE:TOL)
On April 22, Toll Brothers, Inc. (NYSE:TOL) agreed to acquire nearly all of Buffington Homes of Arkansas’ properties, stating that the transaction will expand its footprint into the Fayetteville/Bentonville area. The company wants to complete the transaction in the third quarter, adding nine existing or planned communities and more than 1,500 controlled lots, but has not disclosed financial details. Buffington Homes was launched in 2010. It is northwest Arkansas’ leading luxury builder, providing first-time and move-up purchasers with prices that vary between $400,000 to more than $1 million.
Separately, on April 16, Truist analyst Jonathan Bettenhausen reduced the Toll Brothers, Inc. (NYSE:TOL)’s price objective from $190 to $170. It retained a Buy rating on the stock. The firm said that consumer confidence was being affected by the Iran war and inflation from rising oil costs.
Toll Brothers, Inc. (NYSE:TOL) designs, constructs, markets, and finances detached and attached homes in residential areas. Its geographical segments are as follows: North Region, Mid-Atlantic Region, South Region, Mountain Region, and Pacific Region.
9. KB Home (NYSE:KBH)
On April 13, 2026, Evercore ISI lifted its price target to $54 from $51 for KB Home (NYSE:KBH). It maintained an “In Line” rating on the shares. It cited a “historic buy signal” with downside now “manageable.”
On April 3, Keefe Bruyette reduced the price objective for KB Home (NYSE:KBH) to $57 from $62. It maintained a Market Perform rating on the shares. After the Q1 earnings, the firm decreased its expectations for 2026 and 2027, which shows lower deliveries and profitability. The analyst informs investors in a research note that management has acknowledged the ongoing soft market conditions.
The corporation provided guidance. It is looking to close out second-quarter deliveries of somewhere between 2,250 and 2,450 homes, as well as housing sales of $1.05 billion to $1.15 billion. It also predicts gross margins from 15.0% to 15.6% and SG&A at 12.4% to 13.0% of sales.
Looking at the bigger picture, KB Home (NYSE:KBH) is set to hand over 10,000 to 11,500 homes in 2026, with housing revenue ranging from $4.80 billion to $5.50 billion.
KB Home (NYSE:KBH) sells and builds many types of new homes. It makes a variety of housing units, including attached and detached single-family homes, townhomes, and condominiums. The company operates in four segments, including West Coast, Southwest, Central, and Southeast.
8. Builders FirstSource, Inc. (NYSE:BLDR)
Builders FirstSource, Inc. (NYSE:BLDR) drew various target cuts in the month of April. On April 20, 2026, Bank of America trimmed its price target to $100 from $123. It retained a “Neutral rating” on the shares and stated that the firm expected first-quarter results near the low end of guidance for building products firms and reduced 2026 and 2027 EPS predictions by 4% and 3%.
Earlier, on April 8, 2026, Wells Fargo dropped its price objective for Builders FirstSource, Inc. (NYSE:BLDR) to $87 from $120. It reiterated an Equal Weight rating on the stock. The firm says that housing equities have underperformed the SPX by 12 points since the Iran war began. Having said that, Wells believes the group is not entirely derisked for Q1, hence the firm is being choosy with its calendar reports.
The corporation laid out its 2026 goals. It expects net sales of $14.8 billion-$15.8 billion and gross margins of 28.5%-30%. It also anticipates adjusted EBITDA of $1.3 billion-$1.7 billion, implying margins of 8.8%-10.8%, and free cash flow of around $0.5 billion.
Builders FirstSource, Inc. (NYSE:BLDR) is a firm that supplies and manufactures building materials and manufactured components. It also offers construction services to professional homebuilders, subcontractors, remodelers, and homeowners.
7. D.R. Horton, Inc. (NYSE:DHI)
On April 21, Reuters reported that D.R. Horton, Inc. (NYSE:DHI) reduced its revenue projection for 2026, but it is still above expectations. The firm guided consolidated revenue to $33.5 billion-$34.5 billion. It lowered the higher end from $35 billion while keeping the midpoint above analysts’ $33.8 billion expectation.
Reuters mentioned that shares gained roughly “4%” in premarket trading on the report. Executive Chairman David Auld said that affordability restrictions and a cautious mood continued to affect demand and that sales incentives would stay high until fiscal 2026.
The firm reported Q2 results with net income of $647.9 million, down by 20% year on year, and earnings per share of $2.24, decreasing by 13%. The sales fell from $7.73 billion to $7.56 billion. It missed analysts’ estimates of $7.6 billion.
Reuters reported that builders used incentives such as mortgage rate reductions and smaller homes. This is to drive up demand and put pressure on margins.
D.R. Horton, Inc. (NYSE:DHI) works in the construction and sale of single-family homes. It works in the Northwest, Southwest, South Central, Southeast, East, and North.
6. PulteGroup, Inc. (NYSE:PHM)
On April 23, Reuters reported that PulteGroup, Inc. (NYSE:PHM) had weaker first-quarter results since profit and revenue declined as demand fell. The corporation had diluted earnings of $1.79 per share, down from $2.57 a year ago, and revenue fell to $3.41 billion from $3.89 billion.
The home sale gross margin fell from 27.5% to 24.4% as demand slowed. CEO Ryan Marshall stated both domestic and global factors weakened demand, noting, “We see a consumer with concerns about affordability and the economy.”
According to Reuters, inflation pushed purchasers away, exacerbating problems in the homebuilding business, which has suffered from falling sales for several quarters.
The company also extended its share buyback program by $1.5 billion, showing capital return ambitions in the face of lower performance trends.
On April 4, 2026, UBS raised its price objective for PulteGroup, Inc. (NYSE:PHM) to $162 from $159 and maintained a Buy rating on the stock. The firm revised its model in response to the Q1 financial results.
PulteGroup, Inc. (NYSE:PHM) works in the homebuilding industry. It works through two business segments: homebuilding and financial services.
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