Big things sometimes come in small packages.
Tiny home builder, Legacy Housing Corp., just raised $48 million in an initial public offering, reported Inman. The Texas-based company sold 4 million shares for $12 a pop.
Legacy manufactures homes that range in size from 390 square feet to about 2,600 square feet for a variety of buyers from oil and gas companies looking for employee housing to retirees seeking a pied-à-terre. It is one of the largest tiny home builders in the country.
The IPO comes as the market for tiny homes is expected to take off. Citing Realtor.com, the Tiny House Society claims 500-square-foot homes appreciate “twice as fast as the overall market” and only 32 percent of tiny homeowners have mortgages. In July, Businesswire.com predicted market for the small homes would show a compound annual growth rate a 6.99 percent between 2018 and 2022.
As the year winds up, the national housing market is cooling and homebuilders’ confidence in the market is at a two-year low, leading analysts to believe the sector will focus on starter homes, according to a recent Redfin report. [Inman] — Erin Hudson