Not easy to find interesting housing stocks in the ASX.
The best segment I have found so far is the land lease sector (Aspen, Lifestyle Communities and Ingenia). These companies offer affordable rentals across 3 different segments : rental for everyone, holiday parks* and land lease communities (for over 50). For example, Aspen's average rents are 328 $ per week.
The land lease communities business model looks interesting in particular because it offers low rents for residents (around 200 $ per week) and good returns for owners/operators, as they make profit via development, land lease and land appreciation in the long term. Anyway, the potential changes in regulation can have a major impact for this sector (in particular in Victoria, where exit fees are still tolerated so far, while they are banned in some other states).
Among these 3 companies, Aspen looks the most stable one as they had the same co-CEO since 2019, while the 2 other companies have recently changed their CEO. One of the challenges of this sector seems also to be able to have a good control of costs, as they are not that easy to pass to their customers (who often depend on rental assistance). Aspen has been better than its peers to control its rental margin.
