13 Best Housing Stocks to Buy According to Hedge Funds

Page 1 of 13

In this article, we will discuss the 13 Best Housing Stocks to Buy According to Hedge Funds

As per the US Bank, the US economy is heavily dependent on the housing market. Low affordability, higher mortgage rates, slowness in the activity as well as recent price declines in some of the markets raise questions about the direction of the real estate market and its impact on the broader economy, homeowners, and investors. The firm also believes that housing-related expenditures account for 15%-18% of the US GDP. Additionally, real estate accounts for the nation’s largest share of household assets.

What Lies Ahead for the Housing Market?

The US Bank believes that, moving forward, higher incomes and potentially cheaper mortgage rates might help balance some of the tension between elevated supply and low affordability. According to Bill Merz, head of capital markets research at U.S. Bank Asset Management Group, the Fed rate cuts can help bring mortgage rates lower. If mortgage rates fall and real income growth remains strong, this can support housing demand and help in mitigating higher supply, opines Merz.

Amidst such trends, we will now have a look at the 13 Best Housing Stocks to Buy According to Hedge Funds

13 Best Housing Stocks to Buy According to Hedge Funds

Our Methodology

To list the 13 Best Housing Stocks to Buy According to Hedge Funds, we used a screener to shortlist the stocks catering to the broader housing sector. After getting an extensive list, we chose the ones popular among hedge funds, as of Q2 2025. Finally, the stocks are arranged in ascending order of their hedge fund sentiments.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

13 Best Housing Stocks to Buy According to Hedge Funds

13. Dream Finders Homes, Inc. (NYSE:DFH)

Number of Hedge Fund Holders: 15

Dream Finders Homes, Inc. (NYSE:DFH) is one of the Best Housing Stocks to Buy According to Hedge Funds. On September 2, the company announced pricing of its private offering of $300 million aggregate principal amount of 6.875% senior unsecured notes due 2030. Dream Finders Homes, Inc. (NYSE:DFH) anticipates the net aggregate proceeds of the offering to be ~$295 million, post underwriting discount and estimated offering expenses payable. It plans to use the net proceeds for repaying a portion of the borrowings outstanding under its existing revolving credit facility and for the general corporate purposes.

In Q2 2025, Dream Finders Homes, Inc. (NYSE:DFH) saw strong performance, with homebuilding revenues touching $1.1 billion, largely consistent with the prior-year quarter, while home closings grew by 10% and net sales went up by 13%. Dream Finders Homes, Inc. (NYSE:DFH) believes that the acquisition of Alliant Title further enhanced vertical integration, while expanding its financial services capabilities and offerings.

Page 1 of 13