Manufactured

Manufactured Housing REITs: Not Enough Homes, So Onto Boats

REIT Rankings: Manufactured Housing

manufactured housing reits

(Hoya Capital Real Estate, Co-produced with Brad Thomas)

Manufactured Housing REIT Overview

Manufactured Housing REITs (“MH REITs”) have proven to be immune from coronavirus-related headwinds that have slammed much of the real estate sector, collecting nearly 100% of rents, while also boosting dividends this year. Within the Hoya Capital Manufactured Housing REIT Index, we track the three MH REITs, which account for roughly $25 billion in market value: Equity LifeStyle Properties (ELS), Sun Communities (SUI), and UMH Properties (UMH). In addition to MH communities, these REITs also manage transient, seasonal, and membership-based RV parks and boat marina, which account for roughly 30-40% of the REITs’ portfolio.

mobile home REITs

While not included in the REIT indexes, it should be noted that Cavco Industries (CVCO) and Skyline Champion Corp. (SKY) are the largest publicly traded builders of manufactured homes, while Winnebago Industries (WGO), Thor Industries (THO), and Camping World Holdings (CWH) are all closely linked to the performance of the RV sector. MH units, colloquially known as “mobile homes”, are typically the most affordable non-subsidized housing option in most markets. MH REITs own roughly 5% of the five million manufactured housing sites in the United States. MH REITs comprise 2% of the “Core” REIT ETFs and also represent 4% of the Hoya Capital US Housing Index, the benchmark that tracks the GDP-weighted performance of the US housing industry.

housing 100 index

Roughly one in twelve Americans live in a factory-built manufactured home, and shipments of these units represent roughly 10% of housing starts in a typical year. The quality and appearance of MH sites can vary significantly from communities that are indistinguishable from a typical single-family, master-planned community to the stereotypical “trailer parks”. These REITs generally own communities in the higher tiers of the quality spectrum and are more “retiree-oriented” than the

Continue Reading

Iowa Manufactured Homes Stand Up to ‘Inland Hurricane’ | Nation & World

DES MOINES and CEDAR RAPIDS, Iowa, Sept. 29, 2020 (SEND2PRESS NEWSWIRE) — One thing Iowans are familiar with is wild weather, says the Iowa Manufactured Homes Association (IMHA). Positioned in the heart of the Midwest, Iowa’s weather ranges from extreme cold and snow to temperatures in the triple digits. And let’s not forget tornadoes. Iowans see virtually everything mother nature can throw, but on August 10, 2020, the state was in for a record-setting weather incident.

What has been compared to an “Inland Hurricane,” a ferocious storm called a derecho swept across the state with winds equal to a Category 2 hurricane, taking down 100-year-old oak trees, stripping homes of roofs, destroying business complexes and more. But through it all, Iowa’s manufactured homes, generally perceived an easy target for wind and storm damage, stood up to the derecho.

“We’re blessed to say the least,” said Troy Hames, General Manager and VP of Sales for Hames Homes. “But, honestly, we’re not surprised.”

Cedar Rapids, Iowa, where Hames manages three manufactured home developments totaling over 900 units, seemed to suffer the worst from Iowa’s derecho. Striking an area with a population of just over 130,000, the damage was overwhelming. Businesses saw structural damage to buildings and signage. Parks and rural areas lost up to 80% of their trees, and thousands of acres of crops will need to be plowed under. Residential areas seemed to fare the worst. Over a month later, many residents are still cleaning up fallen trees and thrown debris. But Hames’ communities, along with other manufactured home communities throughout the state, saw comparatively little damage.

While common perceptions of manufactured homes would lead one to think hurricane force winds would be catastrophic, reality and the recent derecho proved otherwise. Out of Hames’ 900+ units, only three (3) were damaged

Continue Reading