Manufactured Housing Q4 Report: Rents Post Steady Gains Across the Country
Highlights:
- Demand for manufactured housing rose in the fourth quarter, with occupancies rising and rents pushing higher. Investor demand also gained momentum with more properties trading and prices rising.
- The national occupancy rate rose 10 basis points in the fourth quarter, reaching 93.4 percent. While the rate crept higher in both the third and fourth quarters, for the full year, occupancy dipped 40 basis points.
- Rents rose throughout the year and posted additional gains in the fourth quarter. Rents ended 2020 at $568 per month, up 3.8 percent from one year earlier.
- Investment activity for manufactured housing communities rose in 2020, including a surge in transactions in the fourth quarter. For the full year, prices and cap rates closely tracked 2019 levels, although cap rates compressed at the end of the year. Cap rates at the start of 2021 will likely be lower than the 2020 average.
