Manufactured Housing 2Q23 Market Insights Report: Occupancies inch lower, but rent growth accelerates
Highlights:
- The manufactured housing market showed some signs of slowing during the first half of 2023, but fundamentals remain strong. Rents have been on the rise, but the pace of gains will likely level off during the second half.
- Occupancy rates at the national level recorded a quarterly decline for the first time in three years during the second quarter. The rate was 94.4% in the second quarter, 30 basis points lower than levels at the beginning of this year. Despite the recent decline, occupancy rates have improved 10 basis points year over year.
- The pace of rent growth accelerated during the second quarter. Rents rose 2.5% in the past three months, reaching $653 per month. Rents have pushed up 7% in the past year, the strongest annual pace of growth since 2016.
- Sales velocity picked up during the second quarter, but transaction counts are still down nearly 45% from levels recorded during the first half of 2022. The median price in the first half was $45,800 per space, while cap rates averaged 6.6%.
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