Good article about the industry.
TimKing & Sid23, thank you for sharing!
If you were to read between the lines of this article one might conclude that the large investors are not primarily interested in investing in “trailer parks”.References to retirees and snow birds, average age of residents being 62, lot rents above $400, average home prices of $60,000 one could conclude their target community and majority of growth in the next 15 years is not your typical low income tenants seeking what in the past was considered affordable housing (in specific areas). They appear to be in the business of middle class affordable housing geared to more a life style choice associate with affordable costs. Adult lifestyle living with potential growth and sustainability beyond 2030.The big guys seem to know where the best investment potential is going forward and it appears to be a different future for parks than your basic low income affordable housing. In the future, in select areas, this may leave rural low income tenant base trailer parks located near larger centers as the best option for small investors. A turn around community in the future may be to clear out the existing low income residents, upgrade the homes and target middle class retirees at higher rents. This has been my strategy and it has worked out very well financially. I know this is not country wide but in certain areas possibly something to give serious consideration as an alternate wave of the future.
Thanks for sharing this article, very interesting.
Greg’s comments above strike a chord with me. Most of my friends are 60 plus, myself included, and many of those are looking at entering retirement with a substantial mortgage and inadequate savings or investments. At least one of them sold their upscale condo in Corona and bought a MH in a park in Hemet as a way to reduce costs and free up cash. From what I can see, this trend will continue for awhile, at least until the boomers cycle through the system. The last of the boomers, those born in 1964, will begin early retirement in 2026 with full retirement 2030. So, it seems like there’s at least 15 to 20 years left of boomers who will downsize, possibly into MHs, when they enter retirement. All said, this means that there may be substantial opportunity for smart investors.