The Housing Market is a Gold Mine

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    Coronavirus has caused most of us to turn our houses and apartments to a gym, workplace, and classroom. Some of us are lucky enough to have a big enough house to accommodate all this while others, especially city dwellers, are unlucky.
    Many people have realized this and they are creating a large migration from the city to the suburbs as they can't handle being stuck in a apartment for months and not being able to access any nature parks nearby. According to Business Insider, there are over 13,000 apartments empty in Manhattan which are supposed to be all taken during this time of the year. Seems like the city is pretty much deserted.
    Looking into the future, the cities will continue to follow this trend even after the pandemic, so cities need to make their cities look attractive such as lower taxes or holiday tax breaks or else they will become a lost city like Atlantis. 
    Going back to this crazy suburban migration, there is two main effects of this migration combined with very low interest rates: higher prices for single family homes and higher sales for home builders. 
    The price of single family houses are going for more than 10% of their original value pre-pandemic and 0% interest rates encourage city goers to spend more on a house as they can take a loan without interest. This is good for people selling homes as they can overprice their house, but also good for homebuilders as people want to buy a new house.
    One homebuilder company I recommend is Taylor Morrison Home (TMHC) because they have a 93 EPS Rating which means that it's annual earnings growth tops 93% among stocks. Furthermore, in Q3, their earnings have surged 53% and their revenue has grown 54% showing their strong growth and upside from this pandemic.
    Century Communities Inc (CCS) looks attractive as it focuses on building single-family homes and townhomes across 10 states. They are also the fastest growing public homebuilder according to Builder magazine "with growth of 151 percent from 2016 to 2018". They have a current P/E ratio of 8.56 meaning that it is cheap right now and a good time to get in. Additionally, out of 3 investors polled about this company, 2 investors believe that it is a buy and 1 believe it is a hold. In the next 12 months,  it is projected a high of $60.00 (39.4%) and an average of $54.00(25.4%) showing a very good upside. They have also beat the predicted EPS and earnings 4 quarters in a row and beat last quarter by 59% which shows that they always outperform what is expected of them. This helps boost the stock every time it beats predicted earnings.

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