Manufactured housing has been one of the least affected real estate market sectors this year—despite the pandemic and rising unemployment. Strong rent collections and very limited supply are expected to keep vacancy rates low in the coming quarters, according to a mid-year Marcus & Millichap report, especially along the Pacific Coast and Florida.
When it comes to things to be on the watch for, the same report points to the decline in inventory of parks and the shutting down of a growing number of communities to be redeveloped for better returns. Although rent rates are not expected to change drastically by the end of this year and into 2021, because of the continued outbreak of COVID-19, rent control remains a concern among park owners and investors.
Marcus & Millichap Senior Vice President Michael Glass shares his insights on how manufactured housing is weathering the current economy. He also offers potential solutions for the current decline in supply and highlights some trends emerging in the sector.