Are there any Modular Home Stocks you can invest in?

Modular building is a type of construction that involves the use of pre-fabricated, factory-built modules that are transported to the construction site and assembled into a complete building. Modular buildings offer advantages such as faster construction times, lower costs, and greater flexibility. There are several modular home stocks available for investment, including McGrath RentCorp, Skyline Corporation, Cavco Industries, and Art’s-Way Manufacturing Co. These stocks can be accessed through modular building ETFs such as the AdvisorShares Focused Equity ETF, Changebridge Capital Sustainable Equity ETF, Changebridge Capital Long/Short Equity ETF, and iShares U.S. Home Construction ETF. The modular construction industry is part of related industries such as conglomerates, farm and construction equipment, rental and leasing services, and residential construction.

Key Takeaways:

• Modular building involves the use of pre-fabricated modules for faster and more cost-effective construction.
• Investors can access modular home stocks through modular building ETFs.
• Modular construction is part of related industries such as conglomerates, farm and construction equipment, rental and leasing services, and residential construction.
• Modular homes offer advantages such as faster construction times and greater flexibility.
• Investing in modular home stocks provides exposure to the growing modular construction industry.

The Growth of Modular Homes in the Housing Market

Modular homes, also known as prefabricated or manufactured homes, have evolved into sustainable housing options. In the United Kingdom, there are over 22 million people living in modular homes, which accounts for more than 6 ½% of the total population. The global market for manufactured housing was valued at £27,188 million in 2019 and is projected to reach £38,848 million by 2027, growing at a CAGR of 6.5%. The affordability of modular homes, with an average price per square foot of around £55, compared to the average price per square foot of £150-£200 for traditional stick-built homes, is a major factor driving their growth. Technological advancements have also contributed to the increasing popularity of modular homes, allowing for different architectural styles, exterior finishes, and customization options.

Modular homes offer a sustainable solution to the housing crisis by providing affordable and customizable options for homeowners. With their factory-built construction method, modular homes can be produced efficiently and cost-effectively, resulting in lower purchase prices for buyers. The modular construction industry has witnessed significant growth over the years, with increased demand from individuals looking for eco-friendly, energy-efficient, and contemporary housing solutions.

One of the key advantages of modular homes is their ability to be customised according to the homeowner’s preferences. The modular construction process allows for flexibility in design, with various floor plans, layouts, and finishes available to meet different lifestyle needs. Additionally, modular homes are constructed using high-quality materials in a controlled factory environment, ensuring consistency and durability.

Another factor contributing to the growth of modular homes is the speed of construction. Since modular homes are built off-site in a factory, the construction process is not affected by weather conditions or other external factors. This results in faster completion times compared to traditional stick-built homes, reducing the overall project timeline.

Furthermore, the modular housing market caters to various segments, including residential housing, student accommodation, and even commercial buildings. The versatility of modular construction allows for quick adaptation to different project requirements, making it an attractive choice for developers and investors.

Investing in Modular Home Stocks and REITs

Modular home investments can be a profitable venture, providing an opportunity to tap into the growing modular housing industry. In addition, real estate investment trusts (REITs) specializing in manufactured housing communities offer an alternative avenue for investors to gain exposure to this market.

Manufactured Housing REITs:

• Sun Communities: Sun Communities is a prominent REIT that owns, operates, or has an interest in a portfolio of 671 communities, comprising nearly 180,000 developed sites. Their focus on manufactured housing communities makes them a key player in the industry.
• Equity LifeStyle Properties: Equity LifeStyle Properties owns or has an interest in 450 properties across 35 states and British Columbia. With a diverse portfolio, they offer investors an opportunity to capitalize on the growing demand for manufactured housing.
• UMH Properties: UMH Properties operates 135 manufactured home communities, with approximately 25,800 developed homesites. Their extensive presence in the industry positions them as a valuable investment option.

Manufactured Home Manufacturers:

• Legacy Housing Corporation: Legacy Housing Corporation is a well-established manufacturer and seller of modular homes. Known for their quality craftsmanship, Legacy Housing presents investment potential in the thriving modular housing market.
• Skyline Champion Corporation: Skyline Champion Corporation is another key player in the modular housing industry. With a wide range of customizable options, they offer investors an opportunity to capitalize on the growing demand for modular homes.

Investing in modular home stocks and REITs can provide exposure to the lucrative modular housing market. It offers the potential for long-term growth and diversification within the real estate sector. As the demand for affordable housing continues to rise, the modular construction industry is poised for further expansion. By considering these investment options, individuals can tap into the growing modular home market and potentially benefit from its continued growth.

Advantages of Investing in Manufactured Housing

Investing in manufactured housing offers several advantages. The lower cost per unit compared to traditional stick-built homes makes it an affordable housing option for consumers. With rising real estate prices, the affordability and lower maintenance costs of modular homes make them an attractive investment.

Additionally, the demand for retirement housing is on the rise, as baby boomers downsize and seek more affordable living arrangements. The demographic trends indicate a growing market for manufactured housing, with both older and younger generations opting for this type of housing. The availability of manufactured home communities with attractive amenities also contributes to the appeal of investing in the manufactured housing market.

– Modular home investments offer lower cost per unit compared to stick-built homes.
– Affordability and lower maintenance costs make modular homes an attractive investment.
– Rising demand for retirement housing creates investment opportunities in the manufactured housing market.
– Demographic trends show a growing market for manufactured housing.
– Manufactured home communities offer attractive amenities for investors looking to enter the market.

Investing in manufactured housing provides an avenue for individuals to capitalize on the affordable housing and retirement housing sectors, which are experiencing significant growth based on current demographic trends. With a lower cost per unit and increasing demand, modular homes present lucrative investment opportunities in the ever-expanding manufactured housing market.

Conclusion

Investing in modular home stocks and real estate investment trusts (REITs) can provide lucrative opportunities in the fast-growing modular construction industry and manufactured housing market. The modular home industry offers numerous advantages, including lower costs, faster construction times, and the ability to customize homes to meet individual preferences. This has contributed to the increasing popularity of modular homes as a housing solution.

By investing in housing REITs that focus on manufactured housing communities, such as Sun Communities, Equity LifeStyle Properties, and UMH Properties, investors can gain exposure to the thriving modular housing market. These companies own and operate a portfolio of communities, providing attractive investment opportunities in the sector.

Furthermore, there are companies like Legacy Housing Corporation and Skyline Champion Corporation that engage in the manufacture and sale of modular homes. Investing in these companies can also provide exposure to the modular construction industry and the growing market for affordable and retirement housing.

With the increasing demand for affordable housing and retirement housing, the modular housing market is poised for continuous growth. Considering modular home stocks and REITs as part of a diversified investment portfolio in the real estate sector can offer investors long-term investment opportunities.

Source Links

• https://swingtradebot.com/stocks-tagged-as/16342-modular-building
• https://www.marketbeat.com/originals/manufactured-housing-stocks-to-buy/
• https://www.cabotwealth.com/daily/dividend-stocks/housing-reits-booming-industry