National Manufactured Housing Report
First Half 2020
Tight Vacancy Provides Cushion in Manufactured Home Parks as Economy Stumbles; Competitive Bidding Boosting Values, Compressing Cap Rates
The growing need for lower-cost homes includes manufactured housing options. The reduced entry cost to buy a manufactured home continues to provide a more affordable path to homeownership. The recent decline in interest rates should afford more people to be able to purchase a manufactured home while rates remain low. Additionally, access to loans for new homes is available in local markets across the nation. Although these factors will keep new resident demand strong, long-term job losses due to the new coronavirus (COVID-19), especially in the hourly-wage segments of the employment market, may affect the ability of some current residents to pay lot rent, increasing turnover. Moving forward, if jobs are not reinstated within 2020, vacancy in some parks may increase and rent gains slip as the market adjust, especially in all-age communities.