SKY - Secular Tailwinds Will Propel The Manufactured Housing Industry

• The manufactured housing is an underappreciated solution to the affordable housing crisis and one that deserves a closer look by investors.
• Manufactured housing has many cost advantages over site-built homes, including the efficiencies of assembly line operations, economies of scale in procurement of materials and appliances, lower levels of waste, theft.
• The demographic trifecta of coming-of-age millennials, retiring boomers and migration trends will lead to increased demand for affordable housing for years to come.
• There is further demand upside if the government sponsored enterprises (GSEs) fulfill their mandate of “duty to serve” by facilitating secondary markets for mortgages in the underserved manufactured housing sector.
• Industry capacity has been drastically reduced over the last 30 years, but has now bottomed and is unlikely to keep up with growing demand for the foreseeable future. This should lead to high returns on tangible equity for operators with along runway of opportunity to reinvest capital at high rates.

For further details see: