Over 20 million Americans – 6.6% of all U.S. households – live in manufactured homes. Combining the best of apartment and single-family home living at a fraction of the cost, the average manufactured home is priced at one fourth ($78,500) the price of a single-family home, while monthly housing expenses are less than half.
MHC is expected to continue to deliver outsized risk-adjusted returns and remain a top performer in commercial real estate due to its predictable, durable, stable cash flows.
Strong demand demographics.
Demographic trends favor additional demand for MHC properties, particularly in the low-tax sunbelt states.
MHC property ownership in the U.S. is highly fragmented, with a majority of MHC properties owned by private individuals. The three U.S. publicly-traded MHC property real estate investment trusts (REITs) control barely 2% of all MHC properties in the U.S.
High barriers limiting new supply.
High barriers to entry, such as zoning restrictions and high construction costs, limit the development of new MHC properties.
Favorable long-term earnings growth.
The continued demand/supply imbalance, reduced rate of depreciation compared to other property types, and strong operating fundamentals result in a favorable long-term NOI growth outlook for the MHC sector.