Why do profitable MHPs often trade at below replacement costs?


#1

By replacement costs, I’m just talking about the infrastructure or development costs–including land, plumbing, electrical, roads, often not even including utility permits, etc. I’m not talking about home costs.

I’m also not talking about 40% occupancy parks in rural areas. Thanks for reading and if you answer.

Any ideas or economic reasons?


#2

Same reason Class B & C apartments typically trade at below replacement cost. Inflation has outpaced rent growth. It’s also important to not fall in love with the concept of “below replacement cost.” Some things should’ve never been built in the first place.