Major New Trends in Mobile Home Park Investing

[Logan M.]

• 1. Increased Institutional Investment: Large investment firms and private equity groups are recognizing the potential of mobile home parks as a stable asset class, driving up purchase prices. This is a predictable cash flow play because housing affordability worsens daily.
• 2. Focus on Resident Experience: New investors are investing in amenities, infrastructure, and overall community management improvements to attract and retain residents.
• 3. Rise of Resident-Owned Communities (ROCs): Tenants are banding together to purchase their parks, seeking to control their housing costs and community future. There are even lending programs specifically for this.
• 4. Evolving Financing Landscape: Increased availability of financing options, including agency debt, CMBS loans, and local bank lending, is making it easier for investors to acquire and improve mobile home parks. The Federal Government has started backing loans for MHPs.
• 5. Technological Integration: Property management software and resident portals are becoming increasingly common, streamlining operations and enhancing communication between residents and owners.
• 6. Growing Demand for Affordable Housing: The ongoing shortage of affordable housing options drives demand for mobile home parks, particularly in desirable locations. I invest in a lot of rural markets and there is zero affordable housing, and many of the communities have vacant slips.

These trends will become more prevalent over the next few decades and you will see legislation dealing specifically with these trends.