Manufactured Housing Q2 Market Report: Investment Activity Spikes in Larger Transactions
Highlights:
- The national manufactured housing market improved during the second quarter. Occupancies rose across the major geographic regions in the country, particularly in areas where population growth has been the strongest. Rents rose at a faster pace than during the first quarter, with annual gains similar to the average pace recorded in recent years.
- Occupancy rose 20 basis points during the second quarter, reaching 92.9 percent. The current occupancy rate is 100 basis points higher than the rate one year ago.
- Manufactured housing rents have advanced 3.9 percent in the past year, reaching $536 per month as of the second quarter.
- The second quarter was a particularly active period in the investment market, with sales velocity accelerating, particularly in larger transactions. The median price through the first half of this year is $44,800 per space, while cap rates have averaged approximately 6.2 percent.