A Growing Real Estate Opportunity

Manufactured housing communities, or MHCs, where most manufactured homes are installed, offer residents friendly neighborhoods, common areas, and a range of attractive on-site amenities. Residents of MHCs pay monthly rent for the site and are responsible for maintenance and costs associated with the manufactured home itself. Owners of MHCs have relatively low operating expenses limited to capital expenses on the site pads, the common areas, and community infrastructure.

Nearly 96% of all MHCs are owned and operated by individuals, resulting in significant opportunity for institutions to implement economies of scale and operation improvements that drive returns for investors. Additionally, the average monthly MHC site rents cost a fraction of apartment rents. In 2021, the monthly cost to rent a site in an MHC averaged $593 compared to $1,594 for a single bedroom apartment.1

An Attainable Housing Solution

Manufactured housing offers one of the largest sources of cost-effective housing in the United States, providing shelter to more than 22 million Americans with a median household income of $30,000 per year.2

For Americans interested in purchasing a home, manufactured housing is one of the most reasonable homeownership options available. In fact, manufactured housing costs nearly 50% less than a traditional site-built home.3

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$ 0
AVG. COST FOR A MANUFACTURED HOUSE IN 2020
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$ 0
AVG. COST PER SQ. FT. FOR A MANUFACTURED HOUSE IN 2020
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$ 0 +
AVG. COST FOR A SITE-BUILT HOME, EXCLUDING LAND COSTS
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$ 0
AVG. COST PER SQ. FT. FOR A TRADITIONAL HOUSE

Note: as of 12/31/2021

SECTOR PERFORMANCE

As of December 1, 2021, Green Street Advisors' Commercial Property Return Index reported manufactured housing returns at nearly 397%, since November 2011, surpassing the next leading sector by 37%.

Notable Sector Performance Across Economic Cycles

Historically, the manufactured housing sector has performed well during both recessions and economic upswings. This is primarily due to the consistent higher returns and relatively low volatility as compared to other leading real estate sectors, such as multifamily, industrial, and retail.

While past performance is not a guarantee of future results, the fundamentals of commercial real estate going into 2020 were strong. 

Investing in Manufactured Housing Communities: Another Perspective

Over the past few decades, MHCs have evolved from what many once viewed as trailer parks for low-income residents to what are now seen as beautiful, safe, affordable, and active communities meeting the needs of 22 million people.

READ BLOG
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August 18, 2022

Investing in Manufactured Housing Communities: Another Perspective

Manufactured Housing

Manufactured Housing Communities (MHCs) are drawing increasing interest among institutional investors, shining a spotlight on this little-known sector [..] READ MORE

Limited Supply with Growing Demand

With rising housing costs, many Americans are looking for alternative housing options, especially Baby Boomers who are wanting to retire and downsize on a fixed income. The increasing demand for affordable housing options and a growing retiree population present a unique opportunity for the manufactured housing sector to grow rents and increase occupancy.

Resident retention is very strong at MHCs – staying on average 14 years. Why? The cost to relocate a manufactured home from one location to another can cost upward of $10,000 depending on size, distance, weight, etc.8

total

0 .4%

of the nation’s total housing are MHCs4

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0

when all baby boomers expected to be 65+5

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0

new MHCs opened
in the last 20 years6

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0 +

average number of years residents stay in MHCs7

0

MHCs NationWide 1

0 %

Owned by Individuals

A Powerful Part of Your Investment Strategy

Manufactured housing is a vital part of the housing market and could offer investors capital appreciation and a steady income stream. Enhancements in the quality of manufactured housing, the neighborhood feel offered by MHCs and the increased interest in the sector by institutional players could unlock the potential for utilizing manufacturing housing as a powerful part of an investment strategy.

Institutional investment activity in MHCs surged throughout 2021 as investors placed capital in operationally resilient sectors with favorable return profiles.

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Inland’s Manufactured Housing Resource Center

Affordable Home Ownership Through Manufactured Housing

Manufactured Housing Comes of Age as a Unique Housing Solution

This once overlooked segment of the housing market has moved far beyond the “trailer park” reputation of the 1960s to emerge as one of the most compelling housing options for both millennials and retirees.

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Manufactured Housing Communities Gaining Ground

Manufactured Housing Communities Gaining Ground

Manufactured housing communities may be one of the most overlooked commercial real estate strategies...

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2023 CRE Sector Update: Manufactured Housing

Ravi Bansal discusses the success of the manufactured housing and the factors continuing to drive sector demand in 2023...

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Sources:

1Statista. Average monthly rent for manufactured housing in the United States from 2010 to 2021. 

2 Manufactured Housing Institute. 2020 Manufactured Housing Facts, Industry Overview. May 2020.

3 U.S. Census Bureau. Cost & Size Comparison New Manufactured Homes and New Single-family Site-Built Homes.

4 Manufactured Housing Institute. Affordable Housing Solution: Manufactured Homes. February 2023

5 NAREIT. Favorable Supply Picture Boosts Manufactured Housing REITs. April 2017.

6 US Census Bureau. Demographics Turning Points for the United States: Population Projections for 2020 to 2060. March 2018.

7 Seeking Alpha. Ground Zero of the Affordable Housing Shortage. October 2019.

8 Moving.com. The Cost of Moving a Mobile Home - What You Can Expect to Pay. July 2022.