5 Best Housing Stocks To Buy According to Hedge Funds

In this article, we discuss the 5 best housing stocks to buy according to hedge funds. To read the detailed analysis of the housing market, go directly to the 14 Best Housing Stocks To Buy According to Hedge Funds.

5. NVR, Inc. (NYSE:NVR)

Number of Hedge Fund Holders: 44

NVR, Inc. (NYSE:NVR) is a homebuilding company that constructs and sells different types of residential properties and provides mortgage-related services through its Homebuilding and Mortgage Banking segments. The company is one of the best housing stocks to buy according to hedge funds.

On April 23, NVR, Inc. (NYSE:NVR) announced its first-quarter earnings. The Q1 GAAP EPS was $116.41 and surpassed the estimates of $10.3.97. In the quarter, revenue reported was $2.33 billion, growing 6.9% year-over-year and beating the estimates of $2.22 billion.

44 hedge funds had stakes in NVR, Inc. (NYSE:NVR), with total positions worth $871.919 million in the fourth quarter of 2023. With 86.118 million shares worth $602.86 million, Diamond Hill Capital is the most dominant shareholder in the company, as of December 31, 2023.

Artisan Partners commented on NVR, Inc. (NYSE:NVR) in its first quarter 2024 investor letter:

“Notable adds in the quarter included Xylem, NVR, Inc. (NYSE:NVR) and Equifax. NVR is a highly productive, build-to-order homebuilder with a land-light strategy that operates in the mid-Atlantic, Northeast, Southeast and Midwest regions. The company uses land options rather than land purchases in its lot development, meaning it can simply focus on building homes and walk away from lots should the environment change (which has proven to be an effective risk management approach over time). The housing cycle continues to be favorable for homebuilders from both a supply and demand perspective. Demographic trends (household formation) support demand while supply is constrained due to a low rate of housing starts and depressed existing home sales (since many existing homes are financed with below-market interest rates). We added to the position on signs of homebuilder orders accelerating.”