Sun Communities, Inc. (SUI)

Sun Communities rents plots in manufactured housing communities and at recreational vehicle parks.

The point of the model is that the trust owns the land and the infrastructure while the home belongs to the resident. Moving out is nearly impossible: transporting a manufactured home costs tens of thousands and is often not technically feasible. Hence exceptionally low turnover and the ability to raise rent every year.

It is also the most affordable owned housing there is, and municipalities almost never permit new communities of this kind — supply does not grow while demand does. Recreational vehicle parks work differently: some pitches are let nightly and depend on the tourist season. Risks: interest rates, insurance and rent regulation.