Manufactured Home Communities National Report
April 12, 2022 | Marcus & Millichap
Post-Pandemic Recovery Fueling Demand by Residents and Investors, As Rising Interest Rates Add New Considerations
Income stability fosters residential demand. The labor market has made significant strides toward recovery since the spring of 2020, notably brightening the economic outlook in the first half of 2022. The employment base has climbed to within 2 percent of the pre-pandemic high, with the unemployment rate returning to historically low levels; however, the number of job openings is still high, translating into upward pressure on wages, including for hourly positions. Strengthening incomes are bolstering household formations and driving demand for lot rentals in manufactured home communities. Availabilities continue to fall as a limited number of new communities have been developed in recent years. This demand-supply dynamic is fostering ongoing upward movement on rents, although at a less rapid pace than observed in the apartment sector or for prices of stick-built homes.
