Rent Growth and Tight Occupancy Define 2025 Start for Manufactured Housing Sector By Pete O’Neil

The manufactured housing sector’s strong operational performance from the past few years carried over into a healthy start to 2025. After holding steady at an elevated level throughout much of the past year, occupancy levels inched up 10 basis points to 94.9%, the highest total in more than 20 years. These tight conditions continue to support rent growth; current rents are up more than 7% from one year ago and 2025 is expected to be the fourth consecutive year where rents rise by at least 5% nationwide. Renter demand for manufactured housing is approaching its highest point in a generation, and shipment volumes are off to their strongest start since 2022. While demand remains elevated, significant improvement in the national occupancy level is unlikely. The Midwest region, though, may see increases as local economies improve and housing costs continue to rise

Sales velocity in the manufactured housing multifamily investment market posted a seasonal slowing from the fourth quarter to the first quarter, but momentum has been building since the second half of 2024. First-quarter transaction volume more than doubled compared to the same period last year, as the expectations gap between buyers and sellers continues to narrow. Cap rates have trended lower in recent months after holding steady in the prior quarter, averaging 6% year-to-date, down roughly 30 basis points from the final three months of 2024. Pricing remains elevated, driven largely by strong gains in Florida, Minnesota, and Colorado. The median price so far in 2025 stands at $52,700 per space, a 3% increase over 2024. North marq is a full-service capital markets resource for commercial real estate investors, offering service from top experts in debt, equity, investment.