CHC continues to see opportunity within the multifamily space driven by a shortage of affordable housing and elevated home mortgage rates. While the sector has faced recent headwinds due in part to elevated deliveries that pushed occupancy rates down to 91.9%, below the 10-year average of 93.5%, tenant demand in 2024 was strong enough to offset much of the new supply. For the year ending Q4 2024, 550,800 units were absorbed, well above the average of 346,800 units. Notably, new construction starts have declined nearly 60% since their peak in 2022. During the same period, U.S. households grew by only 782,000, or 0.6%. Meanwhile, the cost disparity between homeownership and renting has widened to $1,210, representing a 2.8% year-over-year increase and creating another tailwind for rental demand. Similarly, with the backdrop of high homeownership costs nationwide, CHC believes manufactured housing provides a necessary option for growing segments of the population.

There has been negligible new supply and strong demand growth in this sector. Today, more than 22 million Americans live in manufactured homes, a figure CHC expects to increase as aging demographics drive greater demand for accessible, affordable housing. Manufactured home shipments have increased by more than 25% since 2016. Investment activity for manufactured housing communities has followed suit, with sales volume rising 33% from 2020 to 2024 compared to the prior five-year period (2015-2019). The sector also remains highly fragmented, with 60% of the existing stock owned by local owner-operators.

The student housing sector continues to demonstrate its resilience. While year-over-year rent growth is beginning to moderate from record-setting highs, it remains healthy – reaching 3.6% as of August 2024, well above typical pre-pandemic levels of approximately 2% annually. Preleasing activity in 2025 also remains strong, with 54.6% of beds preleased compared to 48.2% at the same time last year. CHC believes universities are central to America’s economic health and often function as engines for the growth in surrounding communities and metropolitan areas. Most of the growth in the student housing market is projected to take place at four year public universities, which have historically seen the most consistent and reliable enrollment trends across institution types. Applications to public universities and colleges outpaced private institutions by 8%, with the fastest geographical growth occurring in the Southwest region at 34%.