Don Vedeen featured in MHN: Despite a slow start, manufactured housing continues to grow
MINNEAPOLIS, MINN. (April 19, 2022)—According to Northmarq's recently released MH report featured in MHN, 2022 ended well for supply and demand in the manufactured housing sector. Regardless of delivery and investment activity slowing in Q422, the national manufactured housing market had a strong year, with a national occupancy rate recorded at a 40 bps increase at the end of Q422.
“Although there is still an incredible appetite for MHC acquisitions in the market, we are still seeing a delta between what sellers are willing to accept versus what buyers can offer," said Don Vedeen, vice president for national manufactured housing investment sales with Northmarq. "The return metrics have been severely affected by the increase in interest rates.”
We can expect total shipment volumes for 2023 to draw near the average levels between 2018 and 2020, according to Vedeen. “The drop will be more associated with a slowing pace of economic growth and new household formation in 2023," he said. "But the factors that support demand for manufactured housing—specifically the elevated costs of rental and for-sale housing—are expected to remain in place throughout the remainder of this year.”
Some topics featured in the report include:
- Employment trends
- Supply growth
- National and regional occupancies
- Rents by region
- Sale prices by state