We recently published an article titled 10 Best Affordable Housing Stocks to Buy.
M/I Homes, Inc. (NYSE:MHO) is among the best affordable housing stocks to buy. On January 7, Citizens analyst James McCanless initiated coverage of M/I Homes with an Outperform rating and a $165 price target, citing a favorable medium-term setup despite near-term margin and earnings pressure. While the firm remains cautious on gross margins over the next few quarters, it sees several catalysts supporting the investment case. Notably, M/I Homes has meaningful exposure to the Midwest and Plains states, which remain more affordable relative to the Southeast, helping sustain demand in a higher-rate environment. In addition, the company’s entry-level Smart Series continues to gain traction, delivering above-average gross margins while addressing affordability constraints for first-time buyers.
Operational performance further supports the outlook. During the Q4 2025 earnings call in January 2026, M/I Homes reported record results in its financial services segment, with capture rates reaching 93% for the full year and mortgage capture at 94% in the fourth quarter. The segment generated pretax income of $56 million for the year, including $8.5 million in Q4, underscoring the value of its vertically integrated model. M/I Homes, Inc. (NYSE:MHO) ended 2025 with 232 active communities, up roughly 5% year over year, and opened 81 new communities during the year, with management expecting the average community count to rise by another 5% in 2026.
Founded in 1976 and headquartered in Columbus, Ohio, M/I Homes, Inc. (NYSE:MHO) is a national homebuilder focused on designing, constructing, and selling single-family homes and townhomes. Its combination of geographic diversification, a strong entry-level offering, and growing contribution from financial services positions the company to navigate near-term housing headwinds while maintaining a solid long-term growth profile.
While we acknowledge the potential of MHO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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