Mobile Homes = Luxury?

Luxury mobile homes and massive rent increases hit mobile homes

Author

Christopher Ebert
June 11, 2022

Good morning, grab a cup of coffee and let's jump right in…

We’re back with Issue of the MHC Weekend, bringing you must-read manufactured housing industry news.

If you’ve got an important story you feel we missed, or want to send some feedback our way, you can always reach out via [email protected]

Enjoy!

What We Are Reading

Luxury mobile homes? They're real, and a Houston company is bringing nearly 3,000 to Texas

If you’re new to the space, or don’t spend a lot of time in and around mobile and manufactured home parks, you might think the phrase “luxury mobile home” is an oxymoron. However, much like the decked out, 200k+ RV you’ll see barrelling down the freeway each summer, luxury mobile homes are very much a reality.

In fact, Texas firm Live Lone Star recently broke ground on a 420-home, $34 million mobile home park development in Pearland, Texas, that aims to offer affordable luxury manufactured homes for residents.

‘We’re all afraid’: Massive rent increases hit mobile homes

As President Biden said last week, tackling inflation is his top economic priority. Today, President Biden is releasing a Housing Supply Action Plan to ease the burden of housing costs over time, by boosting the supply of quality housing in every community...

It’s no secret- rent is up all over the country. A combination of high inflation, low construction starts, and ongoing material and labor shortages has led to consistent high growth for real estate assets- from condos to single-family homes to manufactured and mobile home properties.

This home affordability crisis is magnified when it comes to manufactured home communities and their residents, as they sit in arguably the cheapest form of housing, aside from government-run or sponsored housing. Abha Bhattarai at The Washington Post recently wrote about how park rents in many parts of the country are doubling or tripling, and how corporate owners and developers are changing the mobile home landscape.

He also interviews park residents to get their take on the growing lack of affordable housing options. For a counterpoint, you can also scroll down to our social section below to read Daniel Weisfield's letter in response to the piece, defending rent increases and outlining the numerous benefits that mobile home park residents receive.

You can read Daniel’s letter here, or the original WaPo article linked below.

Cheap, energy-efficient manufactured homes? New federal standards aim for both

Federal policy is a major factor within the property markets, including the MHP space. Government-backed loans, subsidies, zoning codes, and a whole host of other actions have a profound impact on how housing is built, maintained, sold, rented, and lived in.

The latest push from the U.S. Department of Energy and the United States Department of Housing and Urban Development has the potential to make a big impact on energy bills for manufactured homes- as well as their overall cost. Learn more about these new standards by reading the Colorado Public Radio piece linked below.

I covered affordable housing in Charlotte for 3 years. A sad pattern of displacement persists

In a similar story, Lauren Lindstrom covers the lack of affordable housing in our own backyard, Charlotte, NC. She speaks with residents of affordable communities, and those who have been displaced, and outlines just how severe the crisis is by looking at evictions, rent costs, and the total number of displaced people. She also covers some potential legislation that may affect the mobile home sector, including inclusionary zoning and the opportunity to purchase legislation.

Are there secret tunnels under Des Moines' demolished mobile home park?

On a lighter note, an Axios piece penned by Jason Clayworth asks and answers the question: Are there secret tunnels under this demolished Des Moines mobile home park? I won’t ruin the surprise - you can get the rest of the story on Axios, linked below.

Public Markets Corner

Legacy Housing (LEGH) Appoints Duncan Bates as CEO and President

Legacy Housing Corporation (NASDAQ: LEGH) today announced that Duncan Bates, a member of the Company’s Board of Directors and Senior Vice President, Mergers & Acquisitions of Arcosa, Inc. (NYSE: ACA), has been appointed President and Chief Executive Officer, effective June 7, 2022.

Flagship communities real estate investment trust announces new Canadian dollar listing on Toronto stock exchange

TORONTO, June 9, 2022 /CNW/ - Flagship Communities Real Estate Investment Trust (TSX: MHC.U) (OTCQX: FLGMF) (the "REIT") announced today the introduction of a Canadian dollar listing of its trust units on the Toronto Stock Exchange ("TSX").

Recent Acquisitions

Cook Properties looks to extend its manufactured housing footprint to the southeast U.S.

What began as a solid belief in the business model of mobile home park ownership has rapidly accelerated into a full-speed-ahead push for property acquisition and development by Cook Properties.

Deals We’re Reviewing

3 ⭐️ | 100-150 Sites | All-age | Price Summary: $7,750,000 | 1st Year - Cap Rate: 5.83% | 5th Year - Projected IRR: 19.9%

$7,000,000 | Number Of Units: 76

Sale Price: $5,000,000 | Lot size: 5.4 Acres, 3.87 Acres | TOH: 66

Land Size: 9.56 acre | Sites: 86 (includes 2 apartments) | Average Lot Rent: $675

What Else Are We Reading?

ICYMI: MHN’s Top 5 Posts in May 2022

Miss any of MHN's articles? Catch up with five of their most popular posts for the month of May...

With Housing Shortage Still Ongoing, Manufactured Homes are Gaining Ground

Trailer park residents face changing ownership structures of the properties they inhabit, but some states are working to make it easier for them to purchase land where the structures are located...

New developments aim to ease Bozeman’s affordable housing crisis

City officials say the complex will provide affordable rentals for 400 to 500 people. The first time Anna Stone encountered “Randy” in 2019, he was sleeping under a bridge. She recalled he appeared to have psychological issues and was not interested in the help of a stranger. Their introduction did not go well...

Developers forge ahead with large mobile home park near Ann Arbor amid legal challenge

A slide presented on Monday, June 6, 2022 at an Ann Arbor Township Planning Commission meeting by the development team behind a proposed Sun Communities, Inc. mobile home park on Warren Road along U.S. 23 shows a roughly 14-acre parcel developers want to be rezoned for the project...

Fleetwood Homes in Rocky Mount, Virginia, Provides Showcase Home for “Homes on the Hill” Advocacy Event in Washington, D.C.

Facility produces, transports and stages manufactured home on the National Mall to showcase its affordable housing solution and champion the dream of home ownership...

HUD planning to tackle affordable home shortage by encouraging zoning reform

In an effort to remedy America’s great housing shortage, the Department of Housing and Urban Development is launching a new initiative called “Our Way Home” that aims to boost the supply of affordable homes by taking action at a local level...

Rumor Mill

Heard: ~10,000 pads being sold for ~$1 billion

Question: Who’s buying the Carlyle portfolio?

Video Gallery

Social Section

Daniel Weisfield's letter to the Washington Post in response to“'We’re all afraid': Massive rent increases hit mobile homes” (June 6, 2022)

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