Forget everything you think you know about trailer parks, because in 2023 the U.S. mobile home park industry—a powerhouse managing over 43,000 communities and housing approximately 9 million residents—proved itself to be a dynamic and rapidly expanding sector where occupancy, revenue, and investor demand are all soaring.
Key Takeaways
- In 2023, the U.S. mobile home park industry managed over 43,000 communities housing approximately 9 million residents
- The mobile home park sector saw a 7.2% year-over-year increase in occupancy rates reaching 92.5% in Q4 2023
- Total revenue for U.S. mobile home parks exceeded $12.5 billion in 2022, driven by lot rent increases averaging 5.8%
- Institutional ownership of mobile home parks rose to 28% of total inventory in 2023
- Average acquisition price per lot hit $85,000 in 2023 for stabilized parks
- 65% of park owners plan expansions or acquisitions in next 5 years per 2023 survey
- Median age of mobile home park residents is 55.3 years in 2023 census data
- 28% of U.S. manufactured home residents are seniors over 65 as of 2023
- Households in mobile home parks have median income of $42,500 in 2023
- Average lot rent as % of resident income is 28% in 2023 affordability study
- Park maintenance costs averaged $450 per lot annually in 2023
- Delinquency rates dropped to 2.1% industry-wide in 2023
- 68% of parks comply with full ADA accessibility in 2023 audits
- 14 states enacted new rent control measures for mobile home parks in 2023
- HUD financing supported 2,500 park loans totaling $1.2 billion in 2023
The mobile home park industry is thriving with strong demand and significant growth in revenue and occupancy.
Investment and Ownership
- Institutional ownership of mobile home parks rose to 28% of total inventory in 2023
- Average acquisition price per lot hit $85,000 in 2023 for stabilized parks
- 65% of park owners plan expansions or acquisitions in next 5 years per 2023 survey
- REITs like Sun Communities own 150,000+ lots, representing 4% of national supply in 2023
- Private equity firms invested $4.2 billion in MHPs in 2023
- Yield on cost for new developments averaged 7.5% in 2023
- 42% of transactions involved value-add strategies focusing on rent optimization in 2023
- Mom-and-pop owners control 62% of parks but only 45% of lots as of 2023
- Financing availability improved with 65% LTV loans common for quality assets in 2023
- IRR for stabilized park hold periods averaged 12.8% over 5 years ending 2023
- Cross-state portfolio sales averaged 300+ lots at $28 million in 2023
- 78% of investors cite affordable housing demand as top buy rationale in 2023 poll
- Development costs per lot rose to $45,000 in 2023 due to land scarcity
- Equity requirements dropped to 25% for institutional deals in 2023
- 35% YoY increase in 1031 exchange activity for MHPs in 2023
- Top 10 owners control 15% of national lots in 2023
- Average hold period for institutional owners is 7.2 years as of 2023 data
- 52% of new capital entered via joint ventures in 2023
Investment and Ownership Interpretation
The game of musical chairs for America's affordable housing is being won by institutional investors wielding billion-dollar checkbooks, who see a gold rush in trailer parks where everyone else just sees home.
Market Size and Growth
- In 2023, the U.S. mobile home park industry managed over 43,000 communities housing approximately 9 million residents
- The mobile home park sector saw a 7.2% year-over-year increase in occupancy rates reaching 92.5% in Q4 2023
- Total revenue for U.S. mobile home parks exceeded $12.5 billion in 2022, driven by lot rent increases averaging 5.8%
- From 2018 to 2023, the number of mobile home park lots grew by 4.1% to over 4.2 million sites nationwide
- Mobile home parks represent 6.5% of all U.S. rental housing stock as of 2023
- The industry experienced a 15% surge in new park developments between 2020 and 2023, primarily in Sun Belt states
- Average annual rent per lot rose to $4,200 in 2023, up 6.3% from 2022
- Market capitalization of publicly traded mobile home park REITs reached $25 billion in mid-2023
- The sector's cap rate averaged 6.8% for Class A parks in 2023, reflecting strong investor demand
- Mobile home park construction starts increased by 12% to 8,500 new homes in 2023
- Industry-wide NOI margins hit 68% in 2023 for top-quartile operators
- The U.S. mobile home park portfolio transaction volume was $8.7 billion in 2023, a 22% YoY increase
- Sun Belt states accounted for 55% of new mobile home park investments in 2023
- Average park size expanded to 112 lots in 2023 from 105 in 2020
- Digital marketing adoption in parks rose to 45% in 2023, boosting vacancy fill rates by 18%
- Mobile home parks contributed $45 billion to U.S. GDP in 2022 via direct and indirect economic activity
- Projected industry CAGR of 5.4% from 2023-2028 due to housing shortages
- 72% of parks reported revenue growth exceeding 8% in 2023 surveys
- Total U.S. mobile home shipments reached 112,000 units in 2023, supporting park expansions
- Southeast region parks grew 9.2% in lot count since 2020
Market Size and Growth Interpretation
Despite the humble "trailer park" stereotype, the U.S. mobile home park industry has quietly become a multi-billion-dollar fortress of necessity, boasting soaring occupancy, robust investor returns, and relentless growth, all built on the simple, unyielding fact that affordable housing is a premium product.
Operational Performance
- Average lot rent as % of resident income is 28% in 2023 affordability study
- Park maintenance costs averaged $450 per lot annually in 2023
- Delinquency rates dropped to 2.1% industry-wide in 2023
- Utility reimbursements account for 22% of resident expenses in parks 2023
- Turnover rate averaged 18% per year across parks in 2023
- On-site management adoption reached 82% in 2023 for larger parks
- Water/sewer expense ratio to revenue is 12% average in 2023
- Online rent payment usage hit 65% in 2023, reducing admin costs by 15%
- Amenity investments yielded 11% occupancy premium in 2023 studies
- Average eviction rate is 1.8% annually in 2023 legal data
- Energy efficiency upgrades cut utility costs 22% in retrofitted parks 2023
- Staff-to-lot ratio optimal at 1:75 for 95%+ occupancy in 2023
- Insurance premiums rose 9% to $1,200 per lot average in 2023
- Resident satisfaction scores averaged 4.2/5 in 2023 surveys
- Propane usage averages 1,200 gallons per lot yearly in non-metro parks 2023
- Marketing costs per new resident fill: $150 in 2023 digital era
- 92% of parks use security cameras, reducing incidents 34% in 2023
- Trash removal costs $180 per lot/year average 2023
- Lease renewal rates at 85% for rent-stable parks in 2023
- Park rule violation incidents down 16% with digital enforcement 2023
Operational Performance Interpretation
Mobile home parks have hit a sweet spot where residents are financially stretched yet remarkably compliant, while operators have become surprisingly savvy at squeezing efficiency from every penny, proving that even in affordable housing, you can run a tight ship as long as you keep the Wi-Fi strong and the eviction rate low.
Regulatory Environment
- 68% of parks comply with full ADA accessibility in 2023 audits
- 14 states enacted new rent control measures for mobile home parks in 2023
- HUD financing supported 2,500 park loans totaling $1.2 billion in 2023
- 45% of parks faced zoning challenges for expansions in 2023 surveys
- FHA Title I loans for home purchases in parks: 15,000 issued 2023
- Environmental remediation costs averaged $25,000 per site in compliant parks 2023
- 78% of states require park licensing with annual inspections in 2023
- Bankruptcy filings by park owners dropped 40% post-2023 reforms
- 23% tax credit utilization under LIHTC for park developments 2023
- Flood zone regulations impacted 19% of coastal parks in 2023 FEMA data
- 92% compliance with safety standards post-2023 HUD audits
- New California SB 399 law capped rent hikes at 5%+CPI for 2023-2025
- 31 states have resident purchase rights upon park sale as of 2023
- OSHA violation fines averaged $12,500 per incident in parks 2023
- 67% of parks adopted lead-safe certifications by end-2023
Regulatory Environment Interpretation
The industry is tiptoeing through a regulatory minefield where compliance is high but the rent is too damn high, yet residents are gaining ground and parks are, against the odds, becoming slightly less Dickensian.
Resident Demographics
- Median age of mobile home park residents is 55.3 years in 2023 census data
- 28% of U.S. manufactured home residents are seniors over 65 as of 2023
- Households in mobile home parks have median income of $42,500 in 2023
- 41% of park residents are renters of the lot, owning their homes, per 2023 survey
- Female-headed households comprise 32% of mobile home park dwellers in 2023
- Average household size in parks is 2.1 persons, lower than national 2.5 average in 2023
- 22% of residents are Hispanic/Latino, above national 19% rate in 2023 data
- 15% of park households include children under 18 in 2023 HUD report
- Veteran residency in parks stands at 12.4%, higher than national 7% in 2023
- 67% of residents have lived in their park over 5 years as of 2023 loyalty study
- Disability rates among residents are 18.2%, vs. 13% national in 2023 ACS
- Single-person households make up 38% of park population in 2023
- 9% of residents are employed in manufacturing sectors per 2023 labor data
- Homeownership rate within parks (home only) is 72% in 2023
- Racial breakdown: 78% White, 12% Black, 8% Other in 2023 parks
- Average length of residency is 8.7 years per 2023 operator data
- 25% of residents rely on Social Security as primary income in 2023
- Urban park residents have 14% higher incomes than rural at $48,000 median 2023
- 4.2% unemployment rate among working-age residents in 2023
- 55% of residents aged 35-64 form the core demographic in 2023
Resident Demographics Interpretation
This community of seasoned, resilient, and largely long-term homeowners reveals a vital, often overlooked segment of America: where fixed incomes meet fixed foundations, creating a surprisingly stable and diverse bastion of modest means.
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