This year’s rally in homebuilding stocks has outstripped even the AI-fueled tech boom, and if analysts are to be believed, that outperformance is set to continue.

Wall Street price targets show an expected return potential of 16% over the next 12 months for US homebuilders, ahead of the 13% seen for the broader market and the tech-heavy Nasdaq 100 Index. That’s on top of 2023’s 47% surge in builders’ stocks, which has already surpassed the Nasdaq’s 41% climb.