What is driving the robust U.S. housing market?

Several factors are supporting the strong U.S. housing market, including demographic trends (millennials entering prime home-buying years), a significant nationwide housing shortage estimated at millions of units, aging housing stock requiring renovation, and ongoing demand for more living space. These elements create sustained demand for both new construction and home remodeling projects.

How do housing market trends affect companies in this stock group?

Companies in this group benefit in different ways from housing market strength. Homebuilders like PHM and NVR directly profit from constructing and selling new homes. Material suppliers like BLDR and GMS see increased sales of construction materials. Component manufacturers like JELD (doors/windows) and TREX (decking) benefit when their products are included in both new builds and renovations. This diversified exposure helps capture value across the entire construction cycle.

What does TopBuild's success indicate about investing in homebuilding stocks?

TopBuild's decade of strong growth as a building materials installer demonstrates the resilience and long-term potential of the U.S. housing market. Their success suggests that companies throughout the homebuilding supply chain can experience sustained growth even through economic fluctuations. This provides a positive indicator for the broader sector and supports the investment case for companies that serve housing construction and renovation needs.

What are housing starts and why do they matter for these stocks?

"Housing starts" refers to the number of new residential construction projects beginning in a given period. It's a key economic indicator that directly impacts many companies in this stock group. Higher housing starts mean more business for homebuilders, more demand for building materials, and increased sales of housing components like windows, doors, and decking. When housing starts are strong or growing, it typically signals positive revenue opportunities for the entire homebuilding sector.

13 handpicked stocks

U.S. Homebuilding Expansion

A carefully selected group of companies positioned to benefit from America's strong housing market. These stocks span the entire construction value chain, from homebuilders to material suppliers and component manufacturers, all chosen by our expert analysts.

Han Tan | Market Analyst

Published on July 2

Top Picks from This Group

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

Builders FirstSource, Inc.

BLDR

Current price

$126.74

As a key supplier of building materials, they directly benefit from increased new construction and remodeling activity.

PulteGroup, Inc.

PHM

Current price

$134.44

A major homebuilder that profits directly from the strong housing demand that has fueled TopBuild's growth.

NVR, Inc.

NVR

Current price

$8,036.48

Another leading homebuilder that capitalizes on the robust housing market.

Trex Co. Inc.

TREX

Current price

$51.94

Simpson Manufacturing Co Inc

SSD

Current price

$167.22

Masco Corporation

MAS

Current price

$70.22

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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

+54.51%

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About This Group of Stocks

Our Expert Thinking

The impressive decade-long growth of TopBuild signals a resilient U.S. housing market with long-term staying power. This collection taps into the economic ripple effects of strong housing demand, capturing value across the entire construction ecosystem from foundation to finishing touches.

What You Need to Know

This group offers diversified exposure to America's housing strength through various business models. These companies benefit from both new construction and the renovation of existing homes, providing balanced opportunities even as housing market conditions naturally fluctuate.

Why These Stocks

We've selected companies across the full homebuilding value chain to capture different aspects of market growth. From major homebuilders directly constructing properties to manufacturers of essential components like windows and decking, each company plays a vital role in meeting housing demand.

Group Performance Snapshot

54.51%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 54.51% over the next year.

7 of 13

Stocks Rated Buy by Analysts

7 of 13 assets in this group are rated Buy by professional analysts.

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

🏘️

America Needs More Homes

The U.S. faces a housing shortage of millions of units. These companies are positioned to fulfill this massive demand, potentially for years to come.

🔄

Double Market Opportunity

These stocks benefit from both new construction AND the renovation boom happening across America's aging housing stock, creating multiple revenue streams.

🌟

Essential Industry Leaders

This collection includes established market leaders who have proven their ability to thrive even through economic cycles, delivering both growth and stability.

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