7 homebuilding stocks to watch

The best homebuilding stocks depend on your portfolio and investment goals—while volatility can be ideal for day traders, long-term investors will want to look to stocks with steadier gains over time.

Here is Finder’s list of the best homebuilding stocks to buy right now based on performance, price, profit, revenue and dividends.

What you should know before buying homebuilding stocks

This list of homebuilding stocks is meant to help you conduct your own research in finding the best homebuilding stocks to buy right now. It is not investment advice. No single oil stock or list of stocks will suit all investors, and we all have different goals and needs. Always remember that past performance does not guarantee future results.

Best homebuilding stocks to watch in 2024

Learn more about popular homebuilding stocks

We round up a selection of stocks in or related to the private construction industry, weighting the list more heavily towards popular mid- and large-cap US stocks.

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1. NVR (NVR)

NVR, Inc. operates as a homebuilder in the United States. The company operates through, Homebuilding and Mortgage Banking segments.

• Previous close price: $8,955.13
• Market capitalization: $28,125,224,960
• 1 year performance: 42.19%
• P/E ratio: 18.6218

Buy NVR stock on Interactive Brokers

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2. DR Horton (DHI)

D. R. Horton, Inc.

• Previous close price: $162.30
• Market capitalization: $53,056,184,320
• 1 year performance: 26.74%
• P/E ratio: 11.2382

Buy DHI stock on Interactive Brokers

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3. Toll Brothers (TOL)

Toll Brothers, Inc. , together with its subsidiaries, designs, builds, markets, sells, and arranges finance for a range of detached and attached homes in luxury residential communities in the United States. It designs, builds, markets, and sells condominiums through Toll Brothers City Living.

• Previous close price: $151.74
• Market capitalization: $15,519,395,840
• 1 year performance: 76.87%
• P/E ratio: 10.47

Buy TOL stock on Interactive Brokers

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4. LGI Homes (LGIH)

LGI Homes, Inc. designs, constructs, and sells homes. It offers entry-level homes, such as attached and detached homes, and active adult homes under the LGI Homes brand name; and luxury series homes under the Terrata Homes brand name.

• Previous close price: $101.16
• Market capitalization: $2,467,506,688
• 1 year performance: -17.47%
• P/E ratio: 12.4189

Buy LGIH stock on Interactive Brokers

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5. Lennar Corporation (LEN)

Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. It operates through Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments. The company's homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development, and sale of residential land; and development, construction, and management of multifamily rental properties.

• Previous close price: $168.75
• Market capitalization: $45,750,575,104
• 1 year performance: 32.36%
• P/E ratio: 11.0475

Buy LEN stock on Interactive Brokers

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6. PulteGroup (PHM)

PulteGroup, Inc. , through its subsidiaries, primarily engages in the homebuilding business in the United States. It acquires and develops land primarily for residential purposes; and constructs housing on such land.

• Previous close price: $128.51
• Market capitalization: $26,428,899,328
• 1 year performance: 45.54%
• P/E ratio: 9.5134

Buy PHM stock on Interactive Brokers

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7. Beazer Homes USA (BZH)

Beazer Homes USA, Inc. operates as a homebuilder in the United States. It designs, constructs, and sells single-family and multi-family homes under the Beazer Homes, Gatherings, and Choice Plans names.

• Previous close price: $32.91
• Market capitalization: $1,076,366,208
• 1 year performance: 21.13%
• P/E ratio: 6.8847

Buy BZH stock on Interactive Brokers

How to invest in homebuilding stocks

1. Choose an online stock trading platform. Choose from our Top Picks above, use our comparison table below or jump straight to the best stock trading apps in Canada.
2. Sign up for an account. Provide your personal information and sign up.
3. Set up a funding method to pay for the transaction. Deposit funds into your account by linking your banking information.
4. Choose the stocks you want to buy. Search for the stock by name or ticker symbol like NVR or DHI.
5. Place your order. Buy the stock. It's that simple.

Buy homebuilding stocks from these online trading platforms

Compare special offers, low fees and a wide range of investment options among top trading platforms.

Note: The dollar amounts in the table below are in Canadian dollars.

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

Bottom line

While it's possible to turn a profit investing in homebuilding stocks, keep in mind that—like any investment—homebuilding stocks are not immune to risk. These stocks are subject to fluctuating conditions both in the market and in the private construction industry, so carefully vet your picks before you invest. If you're new to investing or if it's been a while since you've taken a critical look at your investment accounts, compare brokers to make sure you're getting the best trading features for your needs.

Related: How to buy stocks in Canada