Manufactured Housing REITs: Housing Shortage Intensifies
- It'll take more than a pandemic to slow down the perennially outperforming manufactured housing REIT sector. These REITs have proven to be immune from coronavirus-related headwinds, collecting nearly 100% of rents.
- Powered by the macroeconomic tailwinds associated with the affordable housing shortage and favorable demographics, Manufactured Housing REITs have been the best-performing real estate sector of the past decade.
- The positive momentum should be enough to keep the sector rolling in 2020. Beyond the sector-leading internal growth, external growth through acquisitions and site expansions have provided an added boost.
- Near-term headwinds related to delayed openings at RV resorts, impaired rent-paying capacity among lower-income residents, and a slowdown in RV and MH unit sales remain risks to monitor.
- Trading at the loftiest valuations in the REIT sector, investors will continue to demand perfection but haven't been let down in quite some time. Low supply and strong demographic-driven demand for housing continue to provide a compelling backdrop.
