Manufactured Housing Q3 Market Report: Fewer properties trade, despite rapid rent gains
Highlights:
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- Shipment volume of manufactured housing units is ahead of the pace recorded in recent years. Approximately 90,000 units have shipped throughout the country, including 28,200 units in the third quarter.
- Occupancy levels stabilized in the third quarter, following eight consecutive quarters of increases. The occupancy rate ended the third quarter at 94.3 percent, 40 basis points higher than one year ago.
- Year over year, average rents have surged 6.7 percent, reaching $625 per month. Rents advanced 2.5 percent in the third quarter alone, topping the 2.2 percent rise recorded in the preceding period.
- Sales velocity slowed from the second quarter to the third quarter as borrowing costs hampered deal flow. Cap rates have begun to push higher, and buyers and sellers are adjusting expectations to reflect the new market conditions. Prices have remained elevated; the median price to this point in 2022 is approximately $58,500 per space.
