Manufactured Home Communities Midyear Outlook
Manufactured Home Communities Outperform During Health Crisis;
Momentum Likely to Carry Into Post-Pandemic Era, Attracting Investors
Despite need for economical living options, new inventory is limited. Hardships brought on by the rapid surge of unemployment at the onset of the pandemic highlighted the need for moderately priced housing options. Households seeking larger spaces in less densely populated locations, in addition to more millennials aging into the homebuying phase of life, have bolstered the demand for single-family homes across the nation, which has sent prices soaring. The need for the more economical housing that manufactured home neighborhoods offer has boosted demand for lot rentals, rapidly filling up spaces. A limited number of new communities have been built over the past few decades, however, mainly due to difficulty in obtaining the necessary permits. Increased interest by more local jurisdictions to provide additional lower-cost housing could allow some new communities to be built or existing facilities to be enlarged in the years ahead.