DEMAND CAUTIOUSLY RETURNS TO THE MANUFACTURED HOUSING SEGMENT
The trend of manufacturers producing larger and more costly units and the lack of financing had reduced the affordability of manufactured housing. However, the traditional housing market continues to improve with higher pricing and reduced inventories, which have begun to increased demand for housing alternatives.
Furthermore, financing by Fannie Mae, commercial mortgage-backed securities (CMBS), traditional banks, and life insurance companies have each increased year over year bringing much needed capital to the asset class. As such, the manufactured housing segment is poised to return to near pre-recession levels, evidenced by four consecutive years of shipment increases, continued capitalization rate compression and increased transactional velocity. Land-lease community owners and operators must continue to monitor costs to sustain viability.
Looking forward, the manufactured housing industry has potential to regroup and strengthen over time. Download the PDF >>