Coming inflation and the mh business

It seems everything you read or hear these days talks about massive inflation down the road. We’re going to have to run the printing presses day and night in order to pay for all the bailouts and other countries will have to do the same. I don’t know if this is true or not but let’s assume such a scenario will begin to play out within the next 2 or 3 years. How will inflation affect this business? Some things are obvious:

  1. Stick built housing will become really difficult to qualify for.

  2. Anyone with an adjustable loan will see payments go up.

  3. Gold becomes a more valuable investment.

OK. Now what about mobile homes? I’m assuming it will become easier to raise lot rents because the “price of everything is going up.” Dealer sales will tank or will they? What about demand for used homes in parks especially with in-house financing? Is there likely to be an effect on the value of parks even if occupancy doesn’t increase? Would desired cap rates likely go up or down?

These are just some musings of an under-worked mind and I’d love to hear what others think.


Wheat Hill