Manufactured Housing Q2 Market Report: Cap Rates Compress as Investor Demand Intensifies


  • The manufactured housing market continued to demonstrate signs of strength in the second quarter. Occupancies and rents rose, shipments are ahead of the pace recorded in recent years, and transaction activity accelerated.
  • The national occupancy rate rose 10 basis points during the second quarter, reaching 93.8 percent. Occupancy is up 60 basis points year over year, and the rate has matched the cyclical high last reached in late 2019 and early 2020.
  • Rents have been on the rise for the past several quarters. Rents gained more than 1 percent during the second quarter, reaching $578 per month. Current rents are up 4 percent from one year ago.
  • Sales velocity rose approximately 10 percent in the second quarter, reflecting the accelerating pace of investor demand for manufactured housing communities. Cap rates have compressed to 6.25 percent on average, while the median price in sales year to date is $38,300 per space, similar to the median price in 2020.

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