Marcus & Millichap

Manufactured Housing Communities Research Report

National Report, Second Half 2019

Special Research Report

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Need for Workforce Housing Keeps Vacancy Tight and Rent Rising; Investors Eyeing Communities for Yield and Cash-Flow Potential

The lower cost of renting in a manufactured home community compared with the median cost of an apartment is boosting rental demand in many parks throughout the country. As the need for workforce housing proliferates across the U.S., this trend should continue in the quarters ahead. Over the past 12 months, vacancy in all regions declined with the largest drop registered in the Midwest. This region has the highest vacancy rate in the nation at 14.6 percent after a 110-basis-point reduction year over year in July. The elevated rate is mainly due to availability resting above 20 percent in a few select metros in Michigan and Kansas. At the opposite end of the spectrum, the West maintains the lowest vacancy at 5.1 percent, down an annual 50 basis points. Among metros, Denver, Miami, Long Island and several California markets have vacancy resting below 1 percent.

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