Manufactured Housing Q3 Market Report: Occupancy Rates Hit 20-Year High, Investment Activity Accelerates
Highlights:
- Operating fundamentals for manufactured housing communities continued to strengthen during the third quarter. The pace of shipments is gaining momentum, occupancy rates are rising, rents have pushed higher, and the investment market continued to post gains.
- Occupancy rose for the fifth consecutive period in the third quarter, inching up 10 basis points to 93.9 percent. This marks the highest national occupancy rate in 20 years.
- Average rents have increased 4.1 percent year over year, ending the third quarter at $586 per month. All regions in the country are recording rent increases with the strongest gains occurring in the South region.
- After rising in the second quarter, sales velocity spiked 35 percent during the third quarter. The sharp acceleration in transactions caused prices to push higher. The median price recorded year to date is approximately $43,300 per space, while cap rates have compressed to 6.1 percent on average.
