Big Money Discovers Mobile Home Parks
Institutional investors now account for roughly 23% of all manufactured housing community purchases, nearly double the 13% share they held between 2017 and 2019. The pace of capital deployment is accelerating. Private equity and institutional investors have committed more than $1 billion to dedicated manufactured housing fund vehicles in recent years, and government-backed financing is scaling alongside them: Freddie Mac alone plans to finance $3.4 billion in manufactured housing community loans between 2025 and 2027.
For individual investors and smaller operators, this capital influx has real implications for deal pricing, operating standards, and exit strategies.
Why Institutions Want Mobile Home Parks
The institutional thesis on manufactured housing is built on fundamentals that are difficult to replicate in other asset classes.
Supply constraints are permanent. Tight local zoning restrictions and community opposition have made it nearly impossible to build new mobile home parks. Unlike multifamily or industrial, where supply can respond to demand, MHC inventory is essentially fixed. Every park that sells is one fewer available.
Occupancy is at historic highs. National MHC occupancy hovers above 95%, up from approximately 86.5% a decade ago. Premium communities are nearly full, and demand continues to grow as housing affordability declines. Only 38% of U.S. households currently earn enough to afford a traditional home, down from 57% in late 2020.
Revenue is sticky. Tenants own their homes and lease the land. Moving a manufactured home costs $5,000 to $15,000, creating a natural barrier to turnover. Lot rent collections are consistent, and expense ratios are low because tenants maintain their own structures.
Returns are strong. Stabilized MHC assets typically trade at cap rates between 5% and 7%. Premium communities in strong markets can trade as low as 4% to 5%. Even at compressed cap rates, the combination of low operating costs, predictable revenue, and rent growth potential delivers attractive risk-adjusted returns.
What Institutional Interest Means for Smaller Investors
The flood of institutional capital is compressing cap rates and pushing acquisition prices higher. Parks that traded at 8% cap rates five years ago are now selling at 5% to 6%. For smaller investors, this means competing on price is increasingly difficult for stabilized, institutional-quality parks.
But there is an opportunity in the segmentation. Institutional buyers typically target parks with 100+ lots, municipal utilities, and strong demographic profiles. The sub-100 lot market, particularly parks in the 30 to 80 lot range, remains less competitive. These smaller parks often have operational inefficiencies, deferred maintenance, and below-market rents that create value-add opportunities.
The strategy for individual investors in 2026 is clear: acquire smaller parks that institutions overlook, improve operations and infrastructure, increase occupancy and rents to market levels, and either hold for cash flow or sell to an institutional buyer at a premium once the park is stabilized.
Tariffs Are Changing the Cost Equation
One factor institutional buyers are watching closely is the tariff impact on manufactured home costs. A home that cost $60,000 to $70,000 to place a few years ago now costs $80,000 to $95,000 depending on size, region, and transport. This increases the cost of filling vacant lots, which affects the underwriting for any park with significant vacancy.
For parks that are already occupied, the tariff impact is minimal since tenants own their homes. But for value-add plays that depend on infilling vacant lots, the higher home costs reduce margins and extend payback periods.
Regulatory Risks Are Part of the Equation
Institutional ownership has also attracted regulatory scrutiny. High-profile displacement events following park acquisitions have pushed lawmakers to propose expanded tenant protections, right-of-first-refusal provisions, and rent regulation. Florida, Oregon, and Washington have all strengthened tenant protections in recent years.
Smart institutional operators are getting ahead of this by adopting professional management standards, providing clear communication on rent increases, and investing in park infrastructure. The operators who treat residents fairly and maintain their communities will face less regulatory risk than those who pursue aggressive rent-only strategies.
How Requity Group Approaches MHC Investing
Requity Group invests in manufactured housing communities with a focus on operational improvement and long-term value, targeting parks in the 30 to 150 lot range where there is clear upside through infrastructure upgrades, occupancy improvements, and bringing rents to market levels. The approach balances investor returns with responsible community management.
Requity also lends directly through the Requity Income Fund, originating financing for small-balance manufactured housing communities. That dual approach, owning and operating parks while also lending against them, gives the fund visibility into the asset class from both sides.
If you are interested in gaining exposure to manufactured housing as an asset class, explore the current fund offerings to learn more.