Mobile Home Parks go by many names. Manufactured Home Parks, Manufactured Housing Communities, or any of those other names; regardless, its importance remains. It is critical to the affordable housing crisis. Take for the example the average home price in my hometown of Wilmington, NC. It’s around $380,000.
Needless to say, it’s pretty expensive. This pales in comparison to the $400,000-$500,000 range you can expect in areas like Colorado. These high population areas have virtually no vacancy; this goes for the housing and apartment industries. It’s skyrocketing rents, to go along with skyrocketing home values.
The Difference In MHP Costs
This is where our industry comes into play. Manufactured housing provides a critical opportunity to only have to spend $50,000-$100,000 to own their home. From there, they’ll simply pay a lot rent. They can relax knowing this rent will remain in an affordable range.
For a more precise figure, we’re talking about half of what you would expect to pay for an average two bedroom apartment. Rents range anywhere between $300-$500, or $500-$800 for a higher value market. Still quite a difference from relevant industry alternatives; the savings are pretty impressive.
Opposition To Manufactured Housing
In the past, cities have long levied for apartment housing as opposed to MHP. Part of this comes from certain outdated social stigmas associated with trailer parks. It also can be a bit of headache trying acquire the land for a park. Even today, MHPs face many limitations in comparison to their counterparts.
But, as the divide between the wealthy and non-wealthy continues to widen, you’ll see this asset class become more and more necessary. It’s accessibility makes it a shoe-in for dire circumstances like inflated housing rates. It’s an opportunity to take some of the pressure off of your efforts.
Knowing A Parks Limitations
Another reason municipalities may opt for apartments over MHPs is for capacity reasons. MHPs will be limited in the amount of tenants they can shoulder. An apartment, on the other hand, can max out occupancy levels far beyond a park’s capabilities. This ultimately means larger revenues, which is an obvious motivator for the city. It makes sense, then, that the overarching density issues may concern developers.
But, how well does this promise of revenue stack up to the housing crisis? These rates are rising with every passing rent cycle, and show little sign of slowing. Whereas it may be viewed as a limitation for MHPs, their lack of excess tenants means less space area, meaning less construction and maintenance costs. For less than $100,000, you can have your peace of mind. This will prove itself to be a major factor in MHP value moving forward.
The MHP Expert
That’s all for this edition of The MHP Expert blog. The team and I here at home base are ever grateful for your time and attention. Have more questions? Head on over to our services page. If it has to do with MHPs, we likely know the answer!