In this article, we will take a look at the List of Homebuilder Stocks Sorted By Hedge Fund Sentiment.

The home-building sector has been under pressure over the past few years, a situation fueled by elevated inflation and mortgage rates. Oversupply following a period of overbuilding, as mortgage rates began rising, is another headwind homebuilders have had to contend with.

Homebuilders have also had to find a balance between increasing incentives to boost sales and protecting profitability in the race to stay afloat. However, recent developments suggest a potential recovery. Government data shows that construction of new homes in the US edged higher 6.2% in December to the highest level in five months.

The iShares US Home Construction ETF is already up by 3.17% for the year, affirming a build-up in momentum around home builder stocks. According to Oppenheimer technical analyst Ari Wald, homebuilders have historically acted as early-cycle leaders. This means the sector tends to move first, and the broader stock market will follow.

Oppenheimer’s Wald wrote that, for now, “the weight of the market evidence remains constructive” for the home-builder sector, but he also noted that it remains “underappreciated” on Wall Street.

Josh Brown and Sean Russo of Ritholtz Wealth Management have also touted homebuilder stocks as ideal investment plays, given that their growth is not susceptible to AI-related disruption. According to Brown, the US remains underbuilt by an estimated 3 to 4 million homes, presenting tremendous opportunities.

“This year, price is telling a very different story than it has in recent years. Not only is the technology sector lagging the S & P 500, it’s underperforming eight other sectors as well. So where are the winners? The State Street S & P Homebuilder ETF (XHB) just cleared its September 2025 high, reaching levels not seen since December 2024,” Brown said.

As activity in the U.S. housing market picks up, this is one of the best times for investors to consider the homebuilding sector as a diversifier amid the premium valuation in the overall equity market. The positive momentum around home builder stocks is likely to continue as the Federal Reserve lowers interest rates and mortgage rates continue to fall.

With that in mind, let’s take a look at some of the Best Homebuilder Stocks to Buy According to Hedge Funds.

Our Methodology

To compile our list of the Best Homebuilder Stocks to Buy According to Hedge Funds, we used screeners to identify 21 companies in the home construction industry. We picked out 13 stocks that had an upside potential to the current stock price as of March 5. We 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.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

List of Homebuilder Stocks Sorted By Hedge Fund Sentiment

9. Dream Finders Homes Inc (NYSE:DFH)

Number of Hedge Fund Holders: 17

Dream Finders Homes Inc (NYSE:DFH) is among the best homebuilder stocks to buy according to hedge funds. Dream Finders Homes released its Q4 2025 earnings on February 23. The homebuilder reported EPS of $0.58, which dropped from $1.29 in the same quarter in 2024 and missed the consensus estimate of $0.64. Revenue of $1.21 billion declined from $1.56 billion a year ago but still surpassed the consensus projection of $1.1 billion.

​While discussing the results, the management said the company operated in a challenging environment in 2025. During the quarter, Dream Finders Homes recorded drops in home closings and gross margin. For the full year, though, closings increased to an annual record of 8,608 homes. The management said that reflected the company’s commitment to providing affordable homes. Looking ahead, the company is expecting around 9,250 home closings in 2026.

​“The ongoing complexity and difficulty of the housing sector persisted through 2025, yet our results demonstrate the strength and resiliency of our business, as well as the perseverance of our team in a challenging environment,” commented Patrick Zalupski, CEO of Dream Finders Homes.

​Dream Finders Homes wrapped up 2025 with $899 million in total liquidity, comprising $234.8 million in cash and cash equivalents. The company repurchased $41.8 million worth of its own shares during 2025. Its existing share repurchase plan has $100 million in authorization and runs up to June 2027.

​Headquartered in Jacksonville, Florida, Dream Finders Homes (NYSE:DFH) focuses on building single-family homes. It primarily serves the Southeast US region, including the Washington, D.C. metropolitan area. Dream Finders Homes is the official builder of the Jacksonville Jaguars and the PGA TOUR.

8. Green Brick Partners Inc (NYSE:GRBK)

Number of Hedge Fund Holders: 21

Green Brick Partners Inc (NYSE:GRBK) is among the best homebuilder stocks to buy according to hedge funds. On February 25, Green Brick Partners reported its Q4 2025 results. The report showed adjusted EPS of $1.78 on revenue of $552.6 million. Both metrics came well above consensus expectations that called for EPS of $1.63 on revenue of $473.3 million. The company kept a gross margin of 29.4%.

The company said it delivered 1,038 new homes in that quarter, representing a 1.9% increase from the same quarter in 2024. Net new home orders in that quarter were 883 units, which the management said was a record for a fourth quarter.

“We delivered strong fourth quarter results despite ongoing affordability challenges faced by many buyers and softening consumer confidence,” remarked Jim Brickman, co-founder and CEO of Green Brick Partners.

Green Brick Partners wrapped up the quarter with $154.6 million in cash. It had no outstanding borrowing on its revolving credit facilities. That puts its total liquidity around $520 million. During Q4, Green Brick Partners bought back 359,000 shares of its own stock. It returned $23 million to shareholders through that share repurchase program.

In other news, Green Brick Partners announced a fresh share buyback program during its Q4 earnings call. The company said it planned to buy back an additional $150 million worth of its shares.

Texas-based Green Brick Partners Inc (NYSE:GRBK) is a homebuilding and land development company. It’s the third-largest homebuilder in Dallas-Fort Worth. It engages in acquiring and developing land into neighborhoods.