SUI - Manufactured Housing REITs: Strong Buys In Volatile Times

2024-04-13 07:00:00 ET

Summary

• Inflation is rising, with the consumer price index showing increases in both headline and core CPI.
• Higher inflation is not favorable for stocks and consumers, particularly lower-income households struggling with housing affordability.
• Manufactured housing emerges as a potential solution to the housing crisis, offering savings compared to traditional homes. Equity LifeStyle Properties and Sun Communities are prime investment opportunities in the sector.

This article was coproduced with Leo Nelissen.

There’s good news and bad news.

The good news is I was right about inflation.

The bad news is that my thesis was “higher for longer,” which is not favorable for stocks and consumers.

The just-released consumer price index (“CPI”) for the month of May showed increases in both headline and core CPI, with core CPI rising by 0.4%. That’s the fastest pace since May 2023 and the fourth straight month of higher-than-expected inflation.

Year-over-year inflation is now at 3.8%, with the three-month annual rate at 4.5%. This makes it very likely that inflation has entered a “higher for longer” environment....

For further details see: