Manufactured Housing Q2 Report: Rents Still Tick Higher Despite Occupancy Dip

Highlights:

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• After remaining stable at the start of the year, the national manufactured housing market softened somewhat during the second quarter. Occupancies, which have been on an upward trajectory for nearly a decade, inched lower in the second quarter.
• The national occupancy rate dipped 60 basis points to 93.2 percent in the second quarter. This marked just the second quarterly decline since the end of 2017. Despite the recent drop, the current occupancy rate is up 30 basis points year over year.
• While occupancy dipped, rents continue to trend higher. Asking rents rose 1.3 percent in the second quarter, reaching $556 per month. Year over year, rents have increased 3.7 percent.
• Investment activity slowed during the second quarter, but sales velocity for the first half of the year is running only slightly behind the 2019 pace. The median price per space is up 6 percent year to date, while cap rates have averaged 8.1 percent.

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