What is the luxury housing market and how does it differ from the general housing market?

The luxury housing market refers to high-end, premium-priced residential properties typically purchased by wealthy individuals. Unlike the general housing market, luxury real estate often behaves differently during economic cycles. It tends to be less sensitive to interest rate changes as buyers frequently use cash or have access to preferential financing. Luxury homes also typically feature premium materials, exclusive locations, and high-end finishes, which is why companies specializing in these areas are included in this stock collection.

Who is Mauricio Umansky and why does his prediction matter?

Mauricio Umansky is the CEO and founder of The Agency, a luxury real estate brokerage firm. His prediction matters because he's a respected figure in the high-end real estate industry with firsthand knowledge of luxury market trends and buyer behavior. With extensive experience serving wealthy clients, his insights about continued strength in premium housing prices can provide valuable perspective for investors considering stocks tied to this market segment. His views may indicate opportunities in companies that might otherwise be overlooked amid broader housing market concerns.

What does "move-up market" mean in relation to homebuilders?

The "move-up market" refers to housing targeted at buyers who are purchasing their second or third homes and "moving up" from starter homes to larger, more expensive properties. These buyers typically have more experience, stronger finances, and seek better amenities or locations. Homebuilders like PulteGroup and Taylor Morrison that serve this segment offer higher-quality finishes, more space, and premium features compared to entry-level homes. The move-up market sits between starter homes and ultra-luxury properties, making these builders somewhat insulated from both first-time buyer interest rate sensitivity and luxury market dynamics.

How might dividend yields affect my investment in these housing-related stocks?

Dividend yields represent the annual dividend payment divided by the stock price, expressed as a percentage. For housing-related stocks, dividends can provide steady income even during market volatility or housing downturns. Companies with strong dividend histories often have stable cash flows and financial discipline. In this collection, stocks with higher dividend yields might offer a partial cushion against price fluctuations while you wait for Umansky's luxury housing prediction to potentially play out. However, remember that dividends aren't guaranteed and can be reduced or eliminated, particularly if housing conditions worsen significantly.

What is a "projected profit" in relation to these stocks?

"Projected profit" refers to analysts' forecasts of a company's future earnings, typically for upcoming quarters or the fiscal year. For housing-related stocks, these projections consider factors like expected home sales, average selling prices, margins, and operational efficiency. These predictions attempt to estimate how much money companies like Toll Brothers or RH will actually make after all expenses. Investors often use these projections to evaluate whether a stock is fairly priced relative to its earnings potential. However, it's important to remember these are estimates that can change as market conditions evolve, especially in a sector as cyclical as housing.

16 handpicked stocks

The Umansky Effect: Riding the Luxury Housing Wave

This curated collection focuses on companies set to benefit from the continued strength in luxury real estate. Based on insights from The Agency CEO Mauricio Umansky, these stocks span premium homebuilders, high-end material suppliers, and luxury furnishing brands positioned to thrive in a resilient high-end housing market.

Han Tan | Market Analyst

Published on July 1

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Toll Brothers Inc.

TOL

Current price

$139.19

As the leading U.S. builder of luxury homes, Toll Brothers is perfectly positioned to benefit from sustained high prices and demand in the premium mar...

As the leading U.S. builder of luxury homes, Toll Brothers is perfectly positioned to benefit from sustained high prices and demand in the premium market segment.

Restoration Hardware Holdings, Inc.

Current price

$200.41

RH is a leading purveyor of luxury home furnishings, and continued strength in high-end housing translates to more spending on premium furniture and d...

RH is a leading purveyor of luxury home furnishings, and continued strength in high-end housing translates to more spending on premium furniture and decor.

Compass, Inc.

COMP

Current price

$7.72

Compass is a real estate brokerage with a significant presence in high-value, luxury urban markets, directly benefiting from high transaction prices.

Williams-Sonoma Inc.

WSM

Current price

$195.30

Trex Co. Inc.

TREX

Current price

$51.51

PulteGroup, Inc.

PHM

Current price

$133.65

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+16.47%

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About This Group of Stocks

Our Expert Thinking

While many fear a housing market decline, Mauricio Umansky predicts luxury real estate will remain strong due to high-net-worth buyer demand and limited inventory. This collection targets companies across the premium housing ecosystem that should benefit regardless of broader market conditions.

What You Need to Know

These companies represent varied segments of the luxury housing market, from builders of high-end homes to suppliers of premium materials and furnishings. They're less vulnerable to general housing market fluctuations because wealthy buyers tend to remain active even during economic uncertainty.

Why These Stocks

Each company was selected for its strong positioning in the luxury segment of the housing market. This includes premier homebuilders like Toll Brothers, high-end furnishing retailers like RH, and premium building material manufacturers like Trex, all poised to capture continued affluent consumer spending.

Group Performance Snapshot

16.56%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 16.56% over the next year.

10 of 16

Stocks Rated Buy by Analysts

10 of 16 assets in this group are rated Buy by professional analysts.

0.5%

Group Growth

This group averaged a 0.5% return last month.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🏘️

Wealth Shields These Stocks

Unlike the general housing market, high-end real estate tends to be more resilient during economic uncertainty. These companies serve affluent buyers who are less affected by interest rates and economic fluctuations.

💎

Luxury's Pricing Power

Companies in the premium housing sector often command higher margins and pricing power than their mass-market counterparts. When wealth remains concentrated, these businesses can maintain profitability even as volume decreases.

🔍

Hidden Opportunity in Plain Sight

While headlines focus on housing market concerns, many investors overlook the distinct behavior of the luxury segment. This disconnect creates potential for these stocks to outperform expectations if Umansky's prediction holds true.

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