Institutional capital says it wants cash flow that tracks inflation, low tenant turnover and strong secular demand drivers that are insulated from economic cycles. Manufactured housing communities deliver all three, but institutional ownership of the sector remains low relative to competing property types.
I have been a conviction holder in the manufactured housing land-lease model for the better part of two decades, and the case has strengthened rather than softened during that period. In the context of the current homeownership affordability crisis, manufactured housing is the most scalable private solution the market has produced.
An asset class hiding in plain sight
Manufactured housing is the largest source of unsubsidized affordable housing in the United States. It shelters more Americans than public and federally subsidized rental housing combined. Replacement cost per unit runs a fraction of site-built construction. New community supply
