11:12 AM EDT, 07/15/2025 (MT Newswires) -- Equity LifeStyle Properties ( ELS ) and Sun Communities ( SUI ) , which mainly own and operate manufacturing housing and recreational vehicle real estate in the US, are quality businesses with demographic tailwinds, Morgan Stanley said in a note Tuesday.

Traditional manufacturing housing benefits from an aging population, while recreational vehicles benefit from a rising Gen X/Boomer core customer base and Gen Z/Millennial group, the investment bank said.

Another demand driver for the businesses of the real estate investment trusts are their cost advantages compared with other housing types, Morgan Stanley said.

The firm said Equity LifeStyle Properties ( ELS ) estimates their renters pay 20% to 25% less per square foot than the average two-bedroom rental, while Sun Communities ( SUI ) notes that their manufacturing housing communities have 25% more space compared with multi-family and single-family rentals at roughly 50% less per square foot.

Morgan Stanley initiated coverage of Equity LifeStyle Properties ( ELS ) at equalweight with a $67.50 price target, and Sun Communities ( SUI ) at equalweight with a $135 price target.

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