For a multitude of reasons, we are long-term bulls on the housing development industry and we believe LGI Homes (LGIH) is most optimal single stock investment within that basket.
LGI is a home builder that specializes in single family “starter homes” in affordable areas, particularly the Southwest and Southeast. We believe that economic trends within the United States have caused the stars to align in favor of this small developer. As millennials leave their apartments (and parents’ homes), we expect them to be looking for the exact types of property that LGI develops: