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Trailer parks have indeed emerged as a lucrative investment option in the aftermath of the housing crash. As the demand for affordable housing options continues to grow, mobile homes and mobile home parks have become an attractive investment opportunity for many investors.
In fact, some of the biggest mobile-home businesses, such as Equity LifeStyle Properties and Sun Communities Inc., have seen impressive returns on their shares since the market crash in 2008. According to the Wall Street Journal, Equity LifeStyle Properties has returned 1,186 percent since March 2009, while Sun Communities Inc. has returned 4,137 percent.
This demonstrates the potential for mobile home investing to provide significant returns on investment, making it a viable option for investors looking to diversify their portfolio and generate passive income.
Roughly 20 million people, or one out of every 18 Americans, live in mobile home parks. These parks are often seen as a low-maintenance option for owners, as the homes and vehicles on the site are brought on and off the land by tenants, who are also responsible for maintaining them. This means that park owners can focus on managing and maintaining the physical infrastructure of the park, such as roads, utilities, and common areas.
However, it's important to note that some mobile home parks may have stricter regulations on home maintenance and appearance, which can place an additional burden on tenants. As the demand for affordable housing continues to grow, mobile home parks will likely remain an important housing option for many Americans.
As the demand for mobile home sites continues to rise, the market has become increasingly competitive, with investors from various sectors jumping in to capitalize on the trend. Sovereign wealth funds, pensions, and private equity firms have all shown interest in the sector, fueling the growth of mobile home parks across the country. Sam Zell's firm, for example, invested $150 million in expansion in 2019, increasing their total number of sites to 156,513, an 11 percent increase from 2011. With the rising demand for affordable housing solutions, it's likely that this trend will continue to grow in the coming years.