search

The Real Deal Logo

Trending

Lawmakers reach sweeping housing deal with “good cause eviction,” new 421aLawmakers reach sweeping housing deal with “good cause eviction,” new 421a“Investing before the ‘all clear’ sign”: Jon Gray on Blackstone’s $10B apartment deal“Investing before the ‘all clear’ sign”: Jon Gray on Blackstone’s $10B apartment dealH-E-B snags 21 acres in Celina, hinting at development boomH-E-B snags 21 acres in Celina, hinting at development boomVornado nabs $34M deal at 220 Central Park SouthVornado nabs $34M deal at 220 Central Park South
Los Angeles

Think big: Tiny home builder raises nearly $50M in IPO

A 500 sq.ft. home reportedly appreciates twice as fast as a typical house

(Credit: iStock)
(Credit: iStock)

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.

Sign Up for the undefined Newsletter

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

Tags
ReVenture Capital