What is Customer Demographics and Target Market of Sun Communities Company?

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Who are Sun Communities' customers?

Understanding customer demographics and target markets is paramount for any company's sustained business strategy and market success. For Sun Communities, a real estate investment trust (REIT) specializing in manufactured housing communities, recreational vehicle (RV) resorts, and marinas, this understanding is particularly crucial as it navigates evolving housing demands and leisure trends.

A pivotal demographic shift impacting the housing market is the increasing demand for affordable housing solutions. This trend has significantly bolstered the manufactured housing sector, which is projected to grow from $34.65 billion in 2024 to $36.02 billion in 2025. Similarly, the RV and camping industry continues to experience robust demand, with 88 million U.S. households identifying as campers and 54 million taking at least one camping trip in 2023. This sets the stage for a deep exploration into Sun Communities' customers, their geographical distribution, their evolving needs, and how the company adapts its strategies to serve them effectively in the current market landscape, including insights from a Sun Communities BCG Matrix.

Sun Communities primarily serves consumers across two main segments: manufactured housing residents and RV resort guests. The company has strategically divested most of its marina portfolio to concentrate on these core areas.

Manufactured Housing Residents

This segment targets individuals and families seeking affordable, quality housing. Retirees are a significant demographic, valuing low-maintenance, energy-efficient, and cost-effective living solutions. Demand for manufactured housing in retirement communities has seen a 25% increase.

RV Resort Guests

This segment caters to vacationers and those seeking leisure travel options. The demographic is diversifying, with younger generations like Gen Z and Millennials increasingly participating in RVing. In 2024, these younger groups represented 61% of new campers.

The company's manufactured housing segment demonstrates strong stability, with an average resident tenure of approximately 21 years. In Q1 2025, occupancy in these properties was a robust 97.5%, accompanied by a 7.3% revenue growth. Overall, the manufactured housing sector achieved occupancy levels of 94.9% in Q1 2025, the highest in over two decades, with rents rising by more than 7% year-over-year. While the RV segment has experienced some recent softness, particularly in transient stays, the company is adapting by converting transient sites to annual sites for more predictable revenue. As of December 31, 2024, the North American blended occupancy for manufactured housing and RVs reached 99.0%, an increase from 97.4% in the previous year, highlighting the overall strength of their combined portfolio.

Strategic Focus Shift

Following the divestiture of its marina portfolio, the company is sharpening its focus on manufactured housing and RV operations. This strategic move is projected to have the North American manufactured housing and RV portfolio contribute approximately 90% of the company's Net Operating Income (NOI) post-transaction.

• Manufactured housing occupancy: 97.5% (Q1 2025)
• Manufactured housing revenue growth: 7.3% (Q1 2025)
• Average resident tenure (manufactured housing): 21 years
• Gen Z and Millennials in RVing: 61% of new campers (2024)
• North American blended occupancy (MH & RV): 99.0% (Dec 31, 2024)

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Sun Communities serves a dual customer base: manufactured housing residents and RV resort guests, each with unique needs and preferences that shape their engagement with the company's offerings.

Manufactured Housing Resident Priorities

For those residing in manufactured homes, affordability is a primary concern, with these homes often being 30% less expensive than traditional site-built houses. Residents also value community living and a low-maintenance lifestyle, seeking stable, long-term housing solutions.

RV Resort Guest Motivations

RV resort guests are primarily motivated by leisure, recreation, and the pursuit of unique travel experiences. Younger demographics, including Millennials and Gen Z, are increasingly prominent, seeking technologically integrated and socially connected travel options.

Technological and Experiential Demands

Across both segments, there's a growing demand for enhanced amenities and experiences. This includes reliable Wi-Fi, efficient automated processes, and a preference for sustainable practices, such as solar energy and water conservation.

Lifestyle and Community Focus

The company's strategy centers on providing high-quality living environments and a broad range of amenities. This focus aims to create an exceptional resident experience, fostering loyalty and satisfaction among its diverse customer base.

Long-Term Resident Tenure

Manufactured housing residents demonstrate significant long-term commitment, with an average tenure of approximately 21 years in Sun Communities properties. This highlights the appeal of the company's stable and well-managed housing solutions.

Adaptation to Market Trends

The company actively responds to evolving customer preferences by upgrading properties and incorporating features like energy-efficient appliances. This adaptability ensures continued relevance and appeal within its target markets.

The company's approach to meeting customer needs is deeply rooted in understanding the distinct drivers for each segment. For manufactured housing residents, the emphasis is on providing a cost-effective, stable, and community-oriented living environment. The land-lease model, which reduces capital expenditures for operators, indirectly benefits residents by contributing to affordability. This segment values the independence and quality that manufactured homes offer as a viable alternative to traditional housing. In the RV sector, the focus is on delivering resort-style experiences that cater to the growing demand for experiential travel, particularly among younger demographics. While the transient RV business has seen a recent dip, the strategic conversion of transient sites to annual sites indicates a commitment to securing a more consistent and loyal customer base within the recreational segment. This strategic shift aligns with the evolving preferences of RV travelers who seek longer stays and more integrated community experiences within parks. The company's Mission, Vision & Core Values of Sun Communities underscore a commitment to enhancing the quality of life for all residents and guests through continuous improvement and responsive management.

Key Customer Preferences

Customer satisfaction is driven by a combination of factors tailored to each market segment.

• Affordability and value for money in housing solutions.
• A strong sense of community and belonging.
• Convenient, low-maintenance lifestyles.
• High-quality amenities and recreational opportunities.
• Technological integration and seamless service delivery.
• Sustainable and environmentally conscious practices.

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Sun Communities operates a geographically diverse portfolio, with a strong presence across the United States, the UK, and Canada. This international reach allows the company to tap into varied markets and resident preferences.

U.S. Market Concentration

Within the U.S., a significant portion of Sun Communities' manufactured housing and RV properties are concentrated in Florida, Michigan, Texas, and California. These states collectively house 63.9% of the company's total manufactured housing and RV sites, often chosen for their appeal as second-home or vacation destinations.

Strategic Portfolio Adjustments

In April 2025, the company divested its marina portfolio for $5.65 billion, sharpening its focus on core manufactured housing and RV communities. This strategic move was complemented by the 2024 disposal of approximately $570 million in non-strategic assets across the U.S., Canada, and the U.K.

Regional Demand Variations

Customer demographics and preferences vary by region, influencing localized offerings. The RV segment, for example, sees seasonal demand shifts, with the Midwest experiencing a summer peak and the South maintaining consistent demand throughout the year.

Localized Management Approach

The company employs on-site property management to address specific community and resident needs. This hands-on approach allows for tailored services and a deeper understanding of the Sun Communities resident profile in each locale.

The company's strategic acquisitions have bolstered its geographic reach and market penetration, allowing it to cater to a diverse Sun Communities target market. Understanding the nuances of Sun Communities customer demographics by age and income is crucial for effective market segmentation.

U.S. State Focus

Florida, Michigan, Texas, and California are key states for manufactured housing and RV communities, representing a significant portion of the company's U.S. footprint.

International Presence

Operations extend beyond the U.S. to include properties in the United Kingdom and Canada, diversifying the company's market exposure.

Strategic Divestment

The sale of the marina portfolio in April 2025 and other non-strategic asset disposals in 2024 underscore a strategic pivot towards core business segments.

Seasonal RV Demand

The RV segment experiences distinct seasonal demand patterns, with higher occupancy in the Midwest during summer and consistent demand in the South year-round.

Localized Operations

On-site property management facilitates tailored community offerings and addresses the unique needs of residents, enhancing the Sun Communities resident profile.

Market Segmentation Insights

Understanding Sun Communities demographic data and psychographics is vital for effective market segmentation and targeting the Sun Communities target market for active adult communities and senior living communities.

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Sun Communities focuses on providing high-quality living experiences and a broad range of amenities to attract and retain its customer base. The affordability of manufactured homes, priced significantly lower than traditional housing, ensures consistent demand for attainable living solutions.

Attracting Manufactured Home Buyers

The company leverages the inherent affordability of manufactured homes to attract a steady stream of residents. This segment benefits from a substantial average resident tenure of approximately 21 years, indicating strong customer loyalty and satisfaction.

Engaging RV Enthusiasts

For RV resorts, a likely emphasis on digital marketing, including social media and online booking, targets younger, tech-savvy demographics. The industry's trend towards direct bookings via official websites underscores the importance of a robust online presence.

Hands-On Resident Experience

Intensive, on-site management is a cornerstone of retention, ensuring exceptional experiences for both manufactured housing residents and RV guests. This detailed approach allows for continuous monitoring and prompt resolution of concerns, a key differentiator.

Strategic Site Conversions

The company actively converts transient RV sites to annual sites to bolster consistent, year-round income. This strategy successfully converted approximately 2,300 transient to annual RV sites in North America during 2024.

Effective customer data utilization and segmentation are vital for targeted campaigns, contributing to consistent same-property Net Operating Income (NOI) growth. This growth is driven by increases in revenue and occupancy, reflecting successful acquisition and retention efforts. For instance, North American manufactured housing same-property NOI saw an 8.9% increase in Q1 2025, supported by strong rental rate hikes and a 150 basis point occupancy gain, reaching 97.5% occupancy for manufactured housing in the same quarter. Understanding the Marketing Strategy of Sun Communities provides further insight into these customer acquisition and retention tactics.

Manufactured Housing Affordability

The lower price point of manufactured homes compared to traditional site-built homes is a primary driver for attracting residents seeking attainable housing solutions.

Long-Term Resident Loyalty

An average resident tenure of around 21 years in manufactured housing communities highlights the company's success in fostering long-term customer relationships and satisfaction.

Digital Engagement for RV Market

Targeting younger, tech-savvy demographics in the RV sector likely involves significant use of digital marketing channels and online booking platforms to drive customer acquisition.

On-Site Management Excellence

Dedicated on-site managers provide hands-on, detail-oriented service, creating a superior resident and guest experience that is crucial for customer retention.

Annual Site Conversion Strategy

Converting transient RV sites to annual agreements enhances revenue stability and customer retention, with 2024 seeing approximately 2,300 such conversions in North America.

Revenue and Occupancy Growth

The focus on same-property NOI growth, evidenced by Q1 2025 manufactured housing NOI growth of 8.9% and 97.5% occupancy, demonstrates the effectiveness of their customer management strategies.

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