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Buy housing stocks on Millennial demand: Firm

Real estate house for sale
Daniel Acker | Bloomberg | Getty Images

Housing stocks are set to outperform next year as millennials finally grow up and start buying homes, according to an investment research firm's annual outlook report.

"Our original bull case for housing was laid out in the first half of 2014, and given its demographics-driven themes, it shouldn't be a surprise that we see the same supportive factors in play. But housing has still not achieved its full potential," Bespoke Investment Group wrote in a note to clients Dec. 16.

The firm added, "In our view, that real outperformance is still ahead."

Here is why the firm is bullish and what investments it recommends...

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