Investment Opportunity
JRB Communities is affiliated with a national real estate investment and asset management company with over 40 years of real estate experience and a proven history of success. This company has developed, acquired and/or managed facilities with a total value of over $300 million. This experience is being used to drive the success of JRB Communities.
The need for affordable housing is benefitting the mobile home industry. The opportunity in mobile home communities is growing as prices of single-family home continue to climb and apartment rents reach record levels. This combination is creating a shortage of affordable housing alternatives. In areas with strong employment gains the impact is more pronounced. In both Denver and Salt Lake City, high job growth areas, vacancy in mobile home parks have experienced triple-digit drops to average below 2 percent. With few new communities and many older parks being convert to other uses has further impacted vacancy rates as displaced tenants look for places to move their homes. Three of the four major regions are experiencing vacancy below 9 percent. As housing costs continue to increase more and more individuals will be looking for alternatives, mobile home communities are an option that will likely see even greater demand.
Is there a specific demographic that trends to mobile homes? No, although there are communities that are specifically targeting the 55+ demographic, in unrestricted mobile home parks you can find nearly every demographic represented. Mobile home parks are desirable alternatives to low-rent apartments because low-rent apartments can attract crime, be noisy due to multiple shared walls, have no private outside space, generally do not allow pets, and tend to provide no sense of community.
Mobile home parks feel more like a subdivision with each mobile home having its own space without a shared wall as would be found in an apartment complex. Because mobile homes are generally owner occupied there is a great sense of community in a mobile home park. That could be why 8 percent of Americans have chosen to live in a mobile home.
A mobile home park can be an excellent investment as it is a way to provide affordable housing. It also delivers the lowest cost detached home costs available in the U.S. Moreover, a mobile home park enjoys a very stable tenant base due to the $4,000 cost that is required to move a home to another mobile home park.
