Mobile home absorption rate

mobile home university
1

How many new homes can a well located mobile home park sell in an average month in a good market?

I would work this deal full-time and oversee sales, installations, operations, etc.

Avg single family home in immediate area is $200K, median household income is $55K, and population within 45 min is 2.75M

Thank you

2

5, easy.

-jl-

3

We look at sustainable growth that is not overwhelming to us as owners or the managers at 1 -2 per month. We have has month where we sell more, and months were we sell none, but that is our growth average over long stretches.

let me add- that number is positive on the occupied home gross number- so in some months you will have homes or tenants go bad, and that is factored into our number. So we see gross positive growth at 1-2 homes per month in all of our markets as a number we can use for forecasting across quarters and years.

4

We have a park in Glenn Heights, Texas that rents 5 homes every week, like clockwork. So that’s around 20 homes a month. But it’s all about several factors:

  1. How “hot” your location is, which is evidenced by the results from your test ad

  2. How “hot” your housing deal is (price, size, quality), which means that it needs to be, as Steve Jobs said, “insanely great”

  3. How flexible you are on bad credit (if you’re demanding a 600+ credit score, your volume will be very low)

  4. How good your sales person is (do they answer the phone, show up, do a credible job, close the sale, etc.)

Our Glenn Heights park has all of these four conditions going for it. But there are probably communities in the U.S. that can outstrip even these numbers. The demand for affordable housing is gigantic, and the only thing that holds most operators back is themselves.

5

Our goal with our parks that have vacant lots is 1 net lot filled per month per park. That limitation is mostly based on how many used homes we can find, move, and rehab with our existing crew. Frank is right - the demand is there so we could probably fill them efaster if we could get them ready faster. For our size operation , 12 lots filled per year (net) per park is a nice annual pay raise without killing ourselves.

Bret

6

Thank you all for your responses. Very helpful