Manufactured Housing Market Insights: Rising shipment totals and surging prices highlight strong demand
Highlights:
- The pace of units shipped spiked to start 2022, reflecting the high cost of housing, the recovering economy, and the persistent demand for manufactured housing.
- Occupancy in the manufactured housing space rose 20 basis points in the first quarter, reaching 94.2 percent, the seventh consecutive quarter where the rate inched higher. Year over year, occupancy is up 50 basis points. Each of the major regions in the country recorded annual increases in the occupancy rate.
- Rents have increased 4.6 percent in the past year, reaching $597 per month in the first quarter. The rise recorded in the first quarter was stronger than in the same period in each of the previous two years.
- Sales velocity in manufactured housing communities slowed at the beginning of the year but are expected to gain momentum in the coming quarters. Cap rates have begun to inch higher, averaging 5.7 percent. In projects that have sold, price growth has surged; the median price spiked to $62,300 per space, with strong gains recorded across several states.
