Manufactured (or mobile) home parks are skyrocketing as many baby boomers and seniors are moving into manufactured home parks to enjoy this highly-affordable, increasingly-luxurious option.
Manufactured home parks still aren’t luxury lofts and aren’t exactly known for their reputation of desirability, so the time is ripe to dive into an undersaturated market. With the advent of tiny homes and those looking for more environmentally friendly and affordable living options, mobile home parks present a solid investment option.
Expect consistency with manufactured home parks investments.
In comparison to apartment buildings, manufactured home parks tend to be particularly consistent in their yearly profits.
The manufactured home parks industry is also frequently described as “recession proof.” Out of all major real estate classes, the manufactured homes sector is the only area without a “year-over-year decline” at any instance since 2000. With less competition, rent rates in manufactured home parks are also less erratic.
Renters or owners of mobile homes also don’t often move out of them, so tenant turnover is far less common. It can cost $5000 or more to move a mobile home, so tenants don’t do it very often. Once the mobile home is parked, it typically stays there.
For those that want to take a hands-off approach to this type of investment, there may be more opportunities to allow responsibilities to shift to residents who can run the daily operations.
There are now more renters than ever.
Affordability will remain an issue for the foreseeable future since more US households are renting than ever. There will be a steady stream of tenants who are looking for something both affordable and comfortable.
Nowadays, mobile homes are not what they used to be. In fact, some manufactured home parks can be even more luxurious than a standard apartment. With manufactured home parks incorporating improved features, this will help to motivate the spike in incoming renters.
Those renters will stay.
Investing in manufactured home parks is certainly an alternative and unique investment, to be sure, but in recent years, manufactured home parks have seen a huge improvement in amenities and appliances, as well as the manufacturing of the buildings themselves.
Baby boomers who aren’t retiring with ample savings are opting for more affordable living options. A manufactured home park is often viewed as a cheaper alternative to a senior living community when it provides similar types of amenities at more reasonable price points.
Since the perception of MHC still can’t quite shake its typical reputation, this opens up a space in the industry for investors to capitalize upon.
How do you find the right type of manufactured home park investment?
All investments carry their own risks, and you’ll want to weigh the pros and cons of those types of investments. If you’d like to learn how you can navigate those risks and make the most out of an investment in manufactured home parks, schedule a meeting to talk.