Economic Trends That Will Help You Sell Your Mobile Home Park in 2023
Mobile home parks can prove themselves to be pretty recession proof. Considered one of the most affordable housing options, investors are monopolizing on the limited supply available in the United States. There are many low-rent parks throughout the United States. These are often in a state of disrepair and need some work. With a small amount of investment, a cash buyer can immediately increase rents gradually to grow their revenue stream. This is also an opportunity for them to invest within their communities.
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.
How investors help revitalize mobile home park communities
Mobile home park investors can help revitalize your mobile home park after making a fast cash offer. By making repairs, modernizing lots, and adding must-haves such as submetering, they are able to increase the number of livable lots and continue to provide an affordable housing option for your tenants.
If you own an older mobile home park, Mobile Home Park Instant Offer can help you find an offer, so you can get your return on investment for managing the property over the years. Lastly, Mobile Home Park Instant Offer will also make sure that your park is in good hands, revitalize what is needed, and help build the community.