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A tiny home company has received big money.
Legacy Housing Corp. now has $48 million in new funding as a result of an initial public offering.
The company (Nasdaq: LEGH) offered 4 million shares at $12, which is expected to be the top of its price range, according to an announcement.
The nation’s fourth-largest manufactured home builder, Legacy is known for commercially viable tiny homes, but also provides an array of similar housing options, such as “single wides” and “double wides.” It also provides modular options for remote oil and extraction industry employees.
According to tinysociety.co, quoting statistics from Realtor.com, “Homes beneath the 500-square-feet range are appreciating twice as fast as the overall market” and “68 percent of tiny house owners don’t have mortgages.”
The tiny house market is expected to have grown when 2018 numbers are finalized. As of July of this year, Businesswire.com reported that the tiny house market should end at a CAGR (Compound Annual Growth Rate) of 6.99 percent.
New offerings targeting retirement communities and elderly empty-nesters are expected to contribute to the sector’s ongoing growth.
The company stated it plans to use the funds raised to expand to new markets and service debt, among other general business purposes. Its target is more markets in the southern United States.
Homes are offered in a wide range of sizes and configurations, ranging from 390 square feet to just over 2,600, and from one bedroom to five. The most expensive home in their current inventory is priced at $95,000.
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