SKY - Legacy Housing Is Building Earnings With Manufactured Housing
2024-01-25 10:27:21 ET
Summary
- Manufactured housing (MH) is well-positioned due to a dearth of supply for lower-income consumers and its affordability compared to other housing options.
- The MH industry has different layers, including site rental/sale, community owners/managers, and MH builders.
- Legacy Housing Corporation stands out as the best-valued builder in the industry, with strong performance during the 2023 downturn and a focus on increasing shareholder value.
Manufactured housing, or MH for short, is a sector I have been bullish on for a long time. It has been and remains well positioned fundamentally for three key reasons:
- Most homebuilding and apartment building is targeted at the high end of the market leaving a dearth of supply for lower income consumers.
- MH offers superior affordability to other forms of housing allowing the customer to get more square footage at a given price point.
- The magnitude of shortage of affordable housing points to a long runway of growth in MH