As the COVID-19-omicron-related concerns mount, people will likely spend more time at home. And because the homebuilding industry is expected to remain in focus, homebuilding stocks PulteGroup (NYSE:), Meritage Homes (NYSE:), and M.D.C. Holdings (NYSE:) could be solid additions to one’s watch list. Wall Street analysts predict that they will rise more than 25% in price over the course of the next months. So, let’s examine these names.Despite high inflation and logistical disruptions, the homebuilding industry has remained red hot over the past few months. Investors’ interest in this space is evident in the SPDR S&P Homebuilders ETF’s (XHB) 7.4% returns over the past three months versus the SPDR S&P 500 Trust ETF’s (SPY) 4.2% returns.

The NAHB/Wells Fargo Housing Market Index was able to show that builders’ sentiment regarding single-family homes built in recent years increased by one point, to 84 in Dec. According to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development data, privately‐owned housing starts in November increased 11.8% year-over-year.

As people are more likely to spend time at home, new COVID-19 restrictions will mean that the trend of work-from-home is expected to keep homebuilding activity booming. Wall Street analysts believe that homebuilding stocks PulteGroup, Inc., Meritage Homes Corporation, and M.D.C. Holdings, Inc. will rise by more than 25% within the short-term.

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