12 Best Housing Stocks to Invest in According to Analysts

10. UMH Properties, Inc. (NYSE:UMH)

Average Upside Potential: 16.06%

The real estate investment trust, UMH Properties, Inc. (NYSE:UMH), owns and operates manufactured home communities. The firm has grown from owning 13 communities consisting of 2,675 homesites in 1985 when it went public to owning and operating 139 manufactured home communities with approximately 26,200 developed homesites currently. These communities are situated in states including New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Maryland, Michigan, Alabama, South Carolina, and Georgia.

Other than boasting an established portfolio, UMH is well-positioned for growth with 3,300 existing vacant lots to fill, and more than 2,200 vacant acres on which to build nearly 8,800 future lots. UMH benefits from both selling affordable homes and providing attractive rental options in a tight housing market. With higher mortgage rates incentivizing homeowners not to move, a limited supply, and the average cost of a manufactured home lower than that of a site-built home, UMH is in a good position.

Currently, UMH is benefitting from its significant exposure to the Marcellus and Utica Shale regions which have the potential to be among the largest sources of natural gas globally. The firm is witnessing increased demand for residential units in the region.

UMH Properties, Inc. (NYSE:UMH) recently witnessed another solid quarter of operating results as it closed the third quarter of 2024. While normalized FFO per share for the quarter was up 9% over the year, the firm was capable of growing same property rental and related income by 8%, same property occupancy by 70 basis points, and same property NOI by 7%, thereby substantially increasing the value of the firm’s communities.