Throughout the last year there have been many changes throughout the US real estate market. Building material costs rose, affecting both new construction single family homes and the affordability and availability of new manufactured homes. With recent increases to rent and single family home prices, affordable housing is becoming more important than ever.
Due to those increases, we have seen an increase in demand for mobile home communities, especially those that have maintained high occupancy in terms of paying tenants and a low number of vacant lots. Mobile home communities in need of more infill, on the other hand, have been having a harder time selling. In some instances, many markets are seeing a 9-12 month waiting period for new homes to be delivered. On top of that, the cost of both used and new homes have increased dramatically.
As inflation is on the rise, it is also important to keep your lot rent and park owned home rents in mind. This is especially important if your park is paying for utility services or if you have a majority of park owned homes. The costs of increasing utility rates and the increasing costs of labor and materials may cause a decrease in your net income, which affects your sales price when the time comes to sell your property.