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The Best-Kept Secret in the Real Estate Investing Industry: Manufactured Housing

The Best-Kept Secret in the Real Estate Investing Industry: Manufactured Housing

Mobile or manufactured homes are becoming a rising star in the REIT industry. This is because while the percentage of manufactured homes are increasing in luxurious communities, manufactured homes are still considered the least expensive non-subsidized housing option. It is the perfect option for retirees or individuals who still want to be homeowners.

Here are four reasons why manufactured homes are the best-kept secret in the real estate investing industry.

Consistent in the Industry
While other REIT categories are coming across a slowing rate as the real estate cycle continues, manufactured homes are continuing to rise to the occasion. Reports indicate the sector that consists of mobile or manufactured homes is significantly immune to supply-related pressures. This is a quality trait to have in the ever-growing industry.

High in Demand
Another reason why manufactured homes are the industries leading sector is that it has the largest economic population than any other real estate sector. In addition, something to think about is Americans are growing in size, but their incomes, however, are not. That is why affordable housing is on the rise and mobile and manufactured homes are high in demand.

The total supply for manufactured homes estimated a growth rate of 0-1% per year over the past decade. As compared to 1-2% per year supply growth in other major real estate sectors.

Flourishing in the Market
Manufactured homes sold well last year in 2017, and it looks like the sector has reaccelerated this year, as we are coming to a close. Reports show manufactured homes returned more than 25% on a total-return bias compared to 5% return for the broader REIT sector.

The Market is Growing
Lastly, beyond the sector reporting internal growth, manufactured home’s external growth should continue to grow. Reports show that there is an increasing number of site expansions and they are continuing to be a positive Kickstarter as both REITs control a land-bank large enough to grow total sites by about 2% per year for the next five years.

If you would like to learn more about manufactured homes and its continuing path in the REITs industry, please visit Townsend Home Sales or call us today!

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