My first pick is Toll Brothers. It’s in all five markets, along with many more across the country. With higher selling prices, it’s serving a wealthier clientele that can more easily absorb any increases in mortgage rates.
My second is KB Homes, which has a big presence in both San Francisco and Las Vegas. Of the two, I like Toll Brothers’ higher price point. But they’re both going to continue to do well in the next 12-24 months.
Oh, and don’t forget Weyerhaeuser, which is a great investment all around.
As of this writing, Will Ashworth did not own a position in any of the aforementioned securities.