From what I’ve seen (MASSIVE Layoff’s) the MH world and low income housing in general is the first and hardest hit when people start loosing their jobs… The loss of mid level jobs filters down hard to the lower income area’s as there is just not as much retail money being spent which means that the lower income folks hours are cut thus reducing the retail money even further compounding the problems.
I don’t know where the lower income folks have gone but the prior mid income folks start grinding down and loosing homes to foreclosure, forced sale, etc. and start downsizing looking for a cheaper place to live. This is the group of people that I’ve been serving for awhile now. Rents in the mid level units have dropped and many are now below the mortgages that are owed by investors and I’m starting to see foreclosure rates rising on SFH rentals. (heard about 203 SFH units foreclosed on with one investor today)
The MH market has pretty much recovered via flexibility were as the SFH market can’t flex as much and currently is in complete turmoil in some areas. There was a post by someone (Ray Alcorn or Michael M. I think) on the other site that said that 2008 would be the WRECKoning year and the streets along the way to financial freedom would be littered with body’s.
I did a summery a while back and I’d have to rent my mobiles for something like $83/month (plus lot rent if don’t own the land) to cover mortgages and get a JOB to eat in order to weather the storm… I believe that flexibility as pointed out in the post today by Greg will be the main strength of MH’s & MHP’s in most area’s as the market shifts abruptly in local niche’s.
That Said, the “market slump” will affect income based value on MH properties (what a better time to buy cashflow), best guess without doing the math we’ve lost about 200-250k in equity across all of our properties using a CAP rate value. Can’t eat equity and the cash flow has become way more critical than the equity stance at the current moment IMHO. Do good deals, weather the storm, and live happy ever after…