8 Best Real Estate Stocks to Buy Beyond REITs

In this article, we take a look at the 8 Best Real Estate Stocks to Buy Beyond REITs.

On May 19, the National Association of Realtors (NAR) reported that pending home sales in April registered a 1.4% month-over-month increase and a 3.2% increase year-over-year. On a month-over-month basis, gains in pending home sales were registered in the Northeast, Midwest, and West, while declines were recorded in the South. On an annual basis, pending home sales increased in the Midwest, South, and West, while they declined in the Northeast. Pending home sales are sales in which a contract has been signed, but the transaction has not closed. Typically, these sales are finalized within one or two months of signing.

NAR Chief Economist Dr. Lawrence Yun highlighted buyers’ cautious optimism. He added:

“Buyers are coming out with cautious optimism despite increasing economic uncertainty and a slight rise in mortgage rates. Demand will easily be even higher once mortgage rates retreat to the levels they were at earlier this year.

Historically low foreclosure sales imply minimal price discounts, with a majority of markets selling at a higher price from a year ago. Unless supply meaningfully increases, home price growth could outpace wage growth and further erode the homeownership rate. All efforts need to be focused on boosting housing supply,” he added.

Meanwhile, the U.S. Census Bureau reported on May 21 that privately-owned housing units authorized by building permits in April were at a seasonally adjusted annual rate of 1,442,000. This is 5.8% higher than the revised March rate of 1,363,000 but is 0.2% below the April 2025 rate of 1,445,000.

The Census Bureau said single-family authorizations in April were at a rate of 872,000, 2.6% below the revised March figure of 895,000. It added that authorizations for units in buildings with five or more units totaled 514,000 in April.

Taking these developments into consideration, let’s take a look at the 8 Best Real Estate Stocks to Buy Beyond REITs.

Our Methodology

To compile this list, we shortlisted companies engaged in real estate development, real estate services, and residential construction using the Finviz screeners. Next, we listed the short percentage of float for all the companies. From this pool, we ranked the stocks based on their short float percentage, from highest to lowest. Additionally, we also included the number of hedge funds holding stakes in these companies as of the first quarter of 2026.

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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).

Note: All pricing data is as of market close on June 2, 2026.

8. Century Communities, Inc. (NYSE:CCS)

Short Float Percentage:7.58%

Number of Hedge Fund Holders: 27

Century Communities, Inc. (NYSE:CCS) is one of the 8 Real Estate Stocks to Buy Beyond REITs. On June 2, the company announced the upcoming opening of a new community in Crestview, Florida, under its Century Complete brand. Called the Cottages of Crestview, the project offers one-story affordable cottage-style homes measuring around 1,114 square feet.

Earlier on June 1, the company also unveiled a new project in Radcliff, Kentucky, called Hidden Ridge, which offers one and two-story homes measuring up to 2,014 square feet.

Based on four analyst ratings compiled by CNN, 50% assigned a Buy rating to Century Communities, while those who marked it Hold and Sell accounted for 25% each. The stock has a median price target of $71.50, a 31.41% upside from the current price of $54.41.

In late April, JPMorgan reduced its price target on Century Communities to $45 from $49 while maintaining an Underweight rating on the shares following the release of the company’s quarterly earnings report. For the first quarter of the year, the company reported a lower net income of $24.4 million from $39.4 million in the same period last year.

Century Communities, Inc. is a company engaged in all aspects of homebuilding from the acquisition, entitlement, and development of land, along with the construction, innovative marketing, and sale of quality homes.

7. Taylor Morrison Home Corp. (NYSE:TMHC)

Short Float Percentage: 6.14%

Number of Hedge Fund Holders: 42

Taylor Morrison Home Corp. (NYSE:TMHC) is one of the 8 Real Estate Stocks to Buy Beyond REITs. On June 2, RBC Capital downgraded its rating on Taylor Morrison to Sector Perform from Outperform, while maintaining a price target of $72.50, according to a report by TheFly. The analyst views the takeover of the firm by Berkshire Hathaway as highly probable, adding that this will be a solid outcome for Taylor Morrison shareholders.

On May 31, Taylor Morrison Home and Berkshire Hathaway Inc. announced that they have reached a definitive agreement for the latter’s acquisition of Taylor Morrison for $72.50 per common share in cash. This represents a total equity value for Taylor Morrison of approximately $6.8 billion and a total enterprise value of approximately $8.5 billion.

Closing of the transaction is expected in the second half of the year and is subject to customary closing conditions, including approval by Taylor Morrison stockholders and receipt of required regulatory approvals.

Taylor Morrison is a national community developer and homebuilder with over 350 communities in the country. The company serves a diverse range of homebuyers across the entry-level, move-up, and resort-lifestyle segments under its Taylor Morrison and Esplanade brands, and develops rental communities under its Yardly brand.

6. Installed Building Products, Inc. (NYSE:IBP)

Short Float Percentage:5.04%

Number of Hedge Fund Holders: 36

Installed Building Products, Inc. (NYSE:IBP) is one of the 8 Best Real Estate Stocks to Buy Beyond REITs. On June 1, DA Davidson analyst Kurt Yinger reiterated a Neutral rating on Installed Building Products while maintaining a price target of $242 price target on the stock, according to a report by TheFly.

DA Davidson also added the stock to its “Best-of-Breed Bison” list, which compiles firms with outstanding business opportunities, exceptional financials, and compelling risk-reward. The analyst highlighted that Installed Building Products offers an attractive top- and bottom-line growth algorithm, noting that this is supported by its ability to effectively manage material price/cost as well as its inorganic growth track record.

Additionally, the analyst also highlighted the company’s ability to deliver against targets of driving organic sales growth in excess of housing completions. It also cited the company’s 20%-25% organic incremental EBITDA margins amid a residential downcycle as impressive.

Out of 15 analyst ratings compiled by CNN, 87% assigned the stock a Hold rating, while Buy and Sell ratings accounted for 7% each. Currently, the stock has an average price target of $232.50, a 13.80% upside from the $204.30 price.

Installed Building Products, Inc. is a residential insulation installer and a diversified installer of complementary building products. These include waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving, mirrors, and other products for residential and commercial builders.

5. Meritage Homes Corporation (NYSE:MTH)

Short float: 4.91%

Number of Hedge Fund Holders: 43

Meritage Homes Corporation (NYSE:MTH) is one of the 8 Best Real Estate Stocks to Buy Beyond REITs. Based on 13 analyst ratings compiled by CNN, 62% rated the stock Hold, while 38% rated it Buy. The stock currently has an average price target of $80, a 17.44% upside from the current price of $68.12.

On April 28, JPMorgan decreased its price target on Meritage Homes to $58 from $62 while maintaining a Neutral rating on the stock following the company’s first quarter earnings report. Similarly, Keefe Bruyette analyst Jade Rahmani also reduced the price target on Meritage Homes to $75 from $76 while maintaining a Market Perform rating on the stock.

On April 22, Meritage Homes reported a 55% decline in net earnings to $55 million in the first quarter of the year from $123 million in the same period last year, mainly due to lower home closing revenue and gross profit. The company also reported a 17% decline in home closing revenue to $1.1 billion, mainly due to a 13% reduction in closing volume to 2,967 homes, combined with a 5% decrease in average sales price (ASP) to $373,000.

Meritage Homes Corporation is an American homebuilder that offers energy-efficient and affordable entry-level and first move-up homes.

4. Champion Homes, Inc. (NYSE:SKY)

Short float: 4.90%

Number of Hedge Fund Holders: 36

Champion Homes, Inc. (NYSE:SKY) is one of the 8 Best Real Estate Stocks to Buy Beyond REITs. On May 27, TheFly reported that RBC Capital reduced its price target on Champion Homes to $92 from $101 while maintaining an Outperform rating on the stock following the release of its fourth quarter results.

The analyst cited a more muted outlook for the first quarter, mainly due to recent macro headwinds. Despite near-term demand remaining impacted by the tough macro backdrop and incremental cost pressures, the analyst noted that the firm’s markets remain relatively resilient.

On May 27, Champion Homes reported an 18.4% decline in its net income in the fourth quarter of its fiscal year, which ended March 28, to $29.7 million. For the full fiscal year 2026, the company posted a 4.3% increase to $206.9 million. The company attributed the decline to charges related to the change in fair value of acquisition contingent consideration and product liability true-up.

Champion Homes, Inc. is a producer of factory-built housing in North America. The company has 46 manufacturing facilities throughout the United States and western Canada with a portfolio of manufactured and modular homes, ADUs, park-models, and modular buildings for the single-family, multi-family, and hospitality sectors.

3. PulteGroup, Inc. (NYSE:PHM)

Short float: 4.42%

Number of Hedge Fund Holders: 47

PulteGroup, Inc. (NYSE:PHM) is one of the 8 Best Real Estate Stocks to Buy Beyond REITs. On May 26, Oppenheimer reiterated its Outperform rating on PulteGroup with a price target of $149, citing the firm’s buyer mix as attractive, according to a report by Investing.com.

Based on 18 analyst ratings compiled by CNN, 50% assigned a Buy rating on PulteGroup’s stock while 39% marked it Hold. The stock has a median price target of $143.50, a 21.85% upside from the current price of $117.77.

For the first quarter of the year, PulteGroup registered a net income of $347 million, or $1.79 per share, lower than $523 million, or $2.57 per share in the same period a year ago. PulteGroup President and CEO Ryan Marshall said the first quarter results reflect the company’s efforts in navigating current market conditions as it works to meet buyer demand. He added:

“Within a demand environment impacted by domestic and global dynamics, we see a consumer with concerns about affordability and the economy, but still desirous of homeownership as demonstrated by the 3% growth in our first quarter net new orders. Given these dynamics, we continue to intelligently manage sales, incentives and production to best position the company for near- and long-term success.”

PulteGroup, Inc. is an Atlanta-based homebuilding company with operations in more than 45 markets throughout the country. The company has several brands, namely, Centex, Pulte Homes, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods.

2. Toll Brothers, Inc. (NYSE:TOL)

Short float: 3.96%

Number of Hedge Fund Holders: 59

Toll Brothers, Inc. (NYSE:TOL) is one of the 8 Best Real Estate Stocks to Buy Beyond REITs. On May 28, the company announced the opening of its latest luxury townhomes in Alpharetta, Georgia. The project called Emberly- Mariposa Collection offers three-story townhomes with over 2,500 square feet of luxury living space, which are priced from around over $700,000.

On the same day, a luxury homes builder also announced the opening of a new exclusive community in Boulder City, Nevada, called Liberty Ridge. The residential community offers single- and two-story home designs ranging from approximately 2,690 to over 3,600 square feet. Homes in the Windmarch Collection are priced from the high end of $700,000, while those in the Crestfield Collection are priced from the low end of $900,000.

On May 21, RBC Capital reduced its price target on Toll Brothers to $158 from $161 while maintaining an Outperform rating on the stock, according to a report by TheFly. The analyst cited that the company’s second-quarter earnings beat and solid fiscal year guide, with softer orders offsetting better margins. Additionally, RBC Capital said the results also reflect that higher-end buyers remain resilient, with gross margin dynamics heavily influenced by mix, amid a challenging operating environment.

Toll Brothers, Inc. is engaged in building luxury homes. It also operates its own architectural, engineering, mortgage, title, land development, smart home technology, landscape, and building components manufacturing businesses.

1. Corporación Inmobiliaria Vesta, S.A.B. de C.V.(NYSE:VTMX)

Short float: 0.44%

Number of Hedge Fund Holders: 3

Corporación Inmobiliaria Vesta, S.A.B. de C.V.(NYSE:VTMX) is one of the 8 Best Real Estate Stocks to Buy Beyond REITs. On May 26, the company announced that it had entered into two new lease agreements for over 570,000 square feet of land in Monterrey, Mexico.

In a statement, the real estate firm said the two buildings located within the Vesta Park Apodaca industrial park were leased to European firms engaged in industrial manufacturing and the production of industrial equipment linked to critical infrastructure and specialized supply chains.

Vesta said the operations of the two companies will strengthen North America’s industrial ecosystem and contribute to the growth of strategic sectors, particularly those engaged in data center infrastructure. It added:

“With these transactions, Vesta continues to consolidate its position as one of the leading developers of industrial infrastructure in Mexico, driving projects aligned with the trends of digitalization, nearshoring and expansion of industrial capabilities in the region.”

On May 4, Barclays increased its price target on Vesta to $41 from $40 while maintaining an Overweight rating on the stock following the company’s first quarter earnings report. It noted that noting that the company had an “overall strong set of results.” For the first quarter of the year, Vesta reported a 14.4% rise in its rental income to $76.7 million from $67.1 million in the same period a year ago.

Corporación Inmobiliaria Vesta, S.A.B. de C.V. is a Mexico-based real estate owner, developer, and asset manager of industrial buildings and distribution centers.

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