The manufactured housing sector is highly fragmented, with a majority of sites controlled by small mom-and-pop owners. This presents an opportunity for market consolidation through both granular add-ons and portfolio acquisitions. However, many community owners lack the capital and knowledge required to efficiently operate manufactured housing communities. As a result, there exists a unique opportunity for well-established operators to acquire these assets and capitalize on the operational upside.

Mobile home communities provide protection for investors looking to eliminate the risk of turnover during an economic turndown. Depending on the distance, the cost to move a mobile home ranges from $7,500 to $15,000. Tenants who own their homes and everything in them are unlikely to leave due to the high cost of relocating, often staying in the same community for 17+ years.

Due to their sticky tenancy, high affordability, and countercyclical nature, manufactured housing assets offer a consistent stream of cash flow year over year. From 2000 to 2022, manufactured housing has experienced an average annual growth of 4.8% in same-store NOI.

As the economy enters recessions, the demand for manufactured housing units increases due to their affordable rent. Manufactured housing has consistently outperformed all asset classes during periods of economic uncertainty.

Nearly 60% of households residing in manufactured housing units spend less than 30% of their household income on rent due to the affordability of manufactured housing. In addition, the national lot rent of $625 per month is 64.4% below the mean social security income of $1,754 per month.

Stone Capital Investors' extensive presence in the Southeast region leads to the frequent arrival of spontaneous information regarding potential sales. These off-market deals emerge from various sources such as mom-and-pop sellers, word of mouth, or brokers who possess familiarity with our operations.

Stone Capital internally manages their property management services in every mobile home community in their portfolio. By staying involved in daily operations, the team guarantees not only a truly passive experience for investors, but a potential for optimal returns and satisfied tenants.

Mobile home parks present a multitude of value-add opportunities. Implementing strategic improvements like upgrading infrastructure, enhancing safety measures, improving amenities, and enhancing the overall aesthetics, investors can increase the value of investments. Stone Capital’s experience in identifying and executing value-add strategies provides a roadmap for future mobile home park projects that we acquire.