MHC from Investment Viewpoint

25% More Space at 50% of the Cost? No Wonder Investors Like This Property Niche.

Manufactured homes are a low-cost option, and real estate investment trusts focused on the sector are benefiting from strong demand. The numbers are pretty compelling. By Sun Communities’ estimates, the average manufactured home costs about $0.98 per square foot, versus $1.98 for other rental options. The size of the average manufactured home, meanwhile, is around 1,250 square feet, versus 1,000 for other options in the same price range. And the average monthly rent works out to roughly $1,220, versus $1,980.

For better or worse, that’s a good thing for manufactured-housing REITs like Sun Communities (SUI -0.59%), Equity Lifestyle Properties (ELS 0.08%), and UMH Properties (UMH -1.39%).

More information and data at 25% More Space at 50% of the Cost? No Wonder Investors Like This Property Niche. | The Motley Fool