Manufactured Housing Q4 Market Report: Investment Activity on an Upswing
Highlights:
- The manufactured housing market had a very strong 2018, with occupancy rising across all regions of the country and rents posting healthy gains. Supply growth is accelerating, but the uptick in demand is outpacing the delivery of new inventory.
- Occupancy in manufactured housing communities rose 110 basis points from 2017 to 2018, ending the year at 92.7 percent. This was the seventh straight year of occupancy improvement in the sector.
- Rents have been pushing higher since 2002, a trend that continued in 2018 with a 3.9 percent increase nationally. Annual gains were strongest in the West region in 2018.
- Investor demand for manufactured housing was robust in 2018, with transaction activity spiking by nearly 20 percent, the median price pushing higher, and cap rates compressing.
About Northmarq
Northmarq is one of the largest privately held commercial real estate firms in the United States, combining a nationwide presence with deep local expertise. With more than 50 offices across the country, we provide a full suite of debt, equity, investment sales, loan servicing and fund management solutions for a comprehensive range of property types. Our unique structure allows us to connect clients with the best opportunities, yet be nimble enough to ensure access to every expert across our company. The firm manages a loan servicing portfolio of over $78 billion and has completed $69.5 billion in transactions over the past three years. At Northmarq, collaboration fuels results, helping clients achieve success in every market, nationwide. For more information, visit www.northmarq.com.