Manufactured Housing 1Q23 Market Insights Report: Occupancies continue to trend higher, while rent gains cool
Highlights:
- While the economy continues to expand, a more uncertain outlook dragged on the national manufactured housing market at the start of 2023. The volume of new shipments slowed, even as occupancy rates continued their upward trend.
- The national occupancy rate rose 30 basis points in the first quarter to 94.7%, reaching its highest level in more than 20 years. During the past 12 months, the rate has improved by 50 basis points.
- Rents ended the first quarter at $637 per month and are 6.7% higher than one year ago. The pace of growth slowed at the start of 2023, although the first quarter is historically the time of the year when rent growth is the softest.
- During the first quarter, sales velocity in the manufactured housing market lagged prior periods. In transactions that did occur, prices declined and cap rates rose — with both measures returning closer to levels achieved a few years ago.