Rising Construction Costs and Park Owned Homes

Over the last few years we have seen the prices of construction materials, utilities, and virtually every other product and service rise at historic rates. This means many property owners are seeing rising expenses across the board, and mobile home park owners are no exception.

Depending on how your park is currently operating, this can be a good thing or a bad thing when it comes to the value of your property. We’ve seen many owners that have direct billed utilities and a low percentage of park owned homes sell their properties at a premium due to the low overhead and the relative safety from inflation that their properties offer in the current market.

On the flip side, owners that are paying a majority of their park’s utilities and have a high percentage of park owned homes are seeing a decrease in their net Income, and with it are seeing a decrease in the overall value of their mobile home communities. If you are an owner with a high percentage of park owned homes, now may be a good time to consider selling your park owned homes in order to decrease your future expenses and maintain the value of your community.

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