Many mobile home park residents are retired
On average, 10,000 Americans retire each day. Many look to downsize so that they can afford more on their retirement. This often means selling their home, moving out of the city, and moving into a smaller home, such as a mobile home. Retirees can continue paying rent during recessions because this demographic is immune to layoffs and other income barriers. This is one of the reasons that many investors are looking at mobile home parks as an investment opportunity.
Many mobile home park tenants work in recession-proof jobs
Many mobile home park residents work in recession-proof jobs. Some of the most in-demand jobs right now include healthcare (such as home health aides and nursing assistants), customer service representatives, laborers, truck drivers, and retail workers. These are jobs that tend to avoid layoffs during a recession. These people will continue to maintain the income necessary to pay rent during a slow economy.
Mobile home park residents may not be as sensitive to rent increases as you’d think
In June 2022, the average rent for a one-bedroom apartment stood at about $1,169. The average rent for a mobile home in the US was about $593. The typical annual rent increase in the United States is between 10% and 15%. Even with a 20% rent increase, a mobile home park tenant is still paying far below the average rent price than the typical American tenant that rents an apartment or house.