From Moneywise via Yahoo Finance, January 9:
The hunt for yield has pushed private equity firms and professional investors into new segments of the real estate market.
In recent years, sophisticated investors have snapped up multi-family units and single-family homes. Now, corporate landlords are targeting the most cost-effective segment of the real estate market: mobile home parks.
The most affordable U.S. housing optionManufactured homes or mobile homes are considered the most affordable non-subsidized housing option in America. That’s because the owners own only the prefabricated unit and not the land under the home. The land is usually leased from the landlord of a trailer park.The average monthly rent for a mobile home in 2021 was $593. That’s significantly lower than the average one-bedroom condo rental rate of $1,450. The mobile park rental also often includes utilities and insurance.
Rents typically rise 4% to 6% annually, and renters have the flexibility to move their housing unit to another park. These factors make the manufactured home highly attractive to low-income households.
As of 2020, nearly 22 million Americans lived in mobile homes. That’s 6.7% of the total population, or about one in 15 people across the country.
However, the economic inefficiencies that make these manufactured homes affordable also make them attractive to professional investors....
....The fact that moving a typical mobile home costs between $3,000 to $10,000 also means that most tenants are unable to afford the move. This gives landlords immense pricing power....
....MUCH MORE
If interested see also "What Happens When Investment Firms Acquire Trailer Parks"
