Manufactured Housing Q4 Market Insights: Manufactured Housing Market Hits New Highs to Close 2021
Highlights:
- The national manufactured housing market continued to improve in the fourth quarter. Occupancy rates rose and rents advanced. Demand is elevated and shipments of new units accelerated. The investment market gained momentum with more properties trading and prices pushing higher.
- Occupancy rose for the sixth consecutive quarter, inching up 10 basis points to 94 percent. The rate advanced 60 basis points in 2021, offsetting a modest decline in the preceding year.
- Rents rose 4.4 percent in 2021, outpacing a gain of 3.8 percent one year earlier. Rents ended the year at $593 per month. All regions in the country recorded rent increases for the year, with the strongest gains recorded in the West and the Southwest regions.
- The year closed on an upswing for investment activity. More properties sold during the fourth quarter than during any three-month period in more than a decade. Prices rose in 2021; the median price reached $45,700 per space. Cap rates compressed throughout the year, averaging 5.9 percent for the year and 5.1 percent in the fourth quarter.
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