Few real estate developers are working on new Mobile Home Park (MHP) development projects in the united states. I know of less than a hand full, if you are working on a new park let me know, I will add you to my list. The number of parks has been on the decline since 1993.
This decline in the number of MHP has been caused by a whole host of events, occurring over the last 26-years. These events, when combined with some misconceptions about mobile homes and mobile home parks, created a lack of investment. Some of these events are:
- Government programs in the 1990s that lowered down payment requirements onconventional home loans making Mobiles Homes less financially attractive.
- A disparity in home finance interest rates that favored regular houses over mobile homes.
- A whole generation of people who know nothing about mobile homes.
- Cities were discouraging Mobile Home Parks with restrictive zoning.
- Government loan programs that favored conventional construction.
- A change in banking practices away from consumer (chattel) loans.
Because of the preceding and other events, there has been a decline in the quantity of Mobile Home Parks (MHP) throughout the U.S. that has continued at a rate of about 1-2% a year. There are an estimated 40,000 land-lease communities in the US.
Some of the reduction in the number of Mobile Home Parks (MHP) was caused by:
- Cities discouraging mobile home parks by restricting zoning, partially caused by poor quality of some parks
- Cities rezoning to get a higher tax base.
- Some of the older parks were caught up in the flood zone map changes.
- Some mobile home parks are being purchased by developers wanting the land for other uses.
- Some older parks cannot accommodate newer larger houses.
- Many smaller MHP are no longer economically viable nor warrant re-investment because of the size of lots and the location of the park.
- Some, older MHP owners who built parks in the 1960s and 70’s now retiring.
- Many older parks do not have the amenities and conveniences sought by today’s families and seniors, to command the higher lot rents needed to update and improve.
I believe that five years from now this lack of development situation will change.
For the last 2-years, I have been out promoting Mobile Home Park development. I have been attending shows, advertising for investors, exhibiting at investor events to raise equity, making speeches, giving presentations and otherwise getting the word out.
As I travel around the country, I am finding people very interest in MHP development from park owners, investors, family offices, bankers, and the like. Everyone seems to want us to be further along in the process and have a new park up running and ready to show them, kind of a proof of concept. It is as though we were dealing in a start-up industry rather than a proven business model that had been around for more than 7o-years. Maybe it’s like electric cars they were on the streets in the late 1890s and early 1900s, and they are being reintroduced today as a new industry.
This lack of development over the last 25 years has created a lack of expertise. A few companies are building new parks with in house expertise. Because of all my research and work in Park development, I am becoming an expert in the field. Other than my own company I do not know of another place where an individual can invest in new park development.
I believe this situation is going to change. Affordable housing and the lack of alternatives to the high cost of living will be a driving factor. In the next 5-years, you will see more MHP development. All of us early MHP development pioneers and investors will not only make significant returns for our efforts, but we will be known as the trailblazers.
If you are interested in learning about mobile home park development, invest in our MHP and get full access to all the information, process and cost as we proceed with the park development and lease up.
If you want to make above average returns on your funds, become an investor in our park development.