REIT Returns on Manufactured Housing Communities – 2017

In 2016, REIT returns for mobile home parks averaged out at 28.5%! (REIT Returns for multifamily apartment complexes was at 18.2%. | Click Here to read our 1st Article on REIT Profits) From January to July this year, the manufactured housing sector brought in 18.3% in returns, making the average return for the last three years 26.7%! Even though we see a 10% drop from last year, this is incredible!

“It is rare to find a segment that has double-digit returns, and so consistently,” said NAREIT Senior Economist Calvin Schnure.

Right now, the US has an extreme housing shortage. There are the largest number of new units under construction this cycle, however almost all these new developments are in highly densely-populated areas and are decently expensive. This year, ~320,000 new deliveries are to be made to the multifamily sector; most of which are on the high-end of the spectrum and fall inside the larger MSAs.

Low- to mid-scale housing demand is on the rise, propelled by blue-collar workers, but affordable supply seems to only be found in mobile homes. Last year, the average price of a manufactured home varied between $50k and $90k - ~10%-30% less per square foot than a traditional home.

Not to mention, there are thousands of baby-boomers retiring every day to a minimum-wage social security check (if you do the math, it comes out to ~$15k-$30k a year before taxes, depending on where you live). Many of these retirees are moving into tight-knit, age-restricted communities and aren’t planning on leaving anytime soon!

If you’re an investor, the manufactured housing sector is your golden ticket – people need affordable housing; the need is only growing daily; and mobile homes meet those needs!

In summary:

• Steady, Consistent, High Returns from MHP REITS!
• Housing Shortage – Large Number of Units Being Built but they are too Expensive!
• Mobile Homes are Significantly Cheaper than Traditional Homes!
• Retiring Baby-Boomers & Other Low-Income Families!
• Growing Housing Demand!

If you’re thinking of investing in a manufactured housing community, call Stratton Group at 855.596.7976 to look at some of our off-market pocket listings! We have deals in over 25 states as we do business in 43 states across the country!

Want to read the original article? Click Here!