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Housing

The Erosion of Affordable Homeownership: Private Equity's Devastating Impact on Mobile Home Parks

Strategic Insights

— 2 min read

As private equity firms increasingly purchase mobile home parks, rents are rising at an alarming rate, displacing low-income homeowners who have invested their life savings in these communities. This trend threatens a crucial path to homeownership, with devastating consequences for residents. Over the past decade, rents in these parks have increased by 22%, with some owners facing rent hikes of over 300%. Historically, mobile homes were a practical solution for low-income families, but today, they are often seen as a commodity, with private equity firms treating them as investments rather than homes.

Key Takeaways:

  • Over the past decade, rents in mobile home parks have increased by 22%, with some owners facing rent hikes of over 300%.
  • Private equity firms have purchased 23% of all manufactured home park sales in 2020 and 2021, up from 13% between 2017-2019.
  • 23 private equity firms own mobile home parks in the United States, with each purchase resulting in rising rents and evictions.
  • Mobile home park residents are especially vulnerable due to their circumstances: they are often trapped in their homes due to the difficulty and expense of relocation.
  • State laws often put the squeeze on tenants, imposing short time frames for eviction and relocation.
  • Only 22 states have laws that provide some protection for mobile home park residents, with many states still imposing harsh eviction policies.
  • Resident-owned cooperatives, rent control policies, and limiting evictions to narrow circumstances are potential solutions to this crisis.
  • Advocates are pushing for stronger regulations and protections for mobile home park residents, including rent control policies and limiting evictions.

Statistics:

  • Over 90% of manufactured homes are stationary and do not move after being purchased and settled.
  • About one-third of mobile home owners rent the lot that they live on, while still owning their home.
  • More than 37% of manufactured homeowners have household incomes below $25,000.
  • Mobile home park residents are disproportionately vulnerable to eviction, with many facing increasing rent hikes and difficulty relocating.

Sources:

  • "One of America’s most affordable paths to homeownership is slipping away" by THE CONVERSATION
  • "The immovable mobile home" by THE CONVERSATION
  • "Private equity's foray into the housing market is on the rise – with devastating consequences for residents" by THE CONVERSATION
  • "Making Manufactured Homes Affordable" by Public Policy Institute of California
  • "Mobile home park residents are especially vulnerable due to their circumstances: they are often trapped in their homes due to the difficulty and expense of relocation" by THE CONVERSATION
  • "State laws put the squeeze on tenants" by THE CONVERSATION
  • "Putting power back in the hands of residents" by THE CONVERSATION
  • "Currently, only 22 states have laws that provide some protection for mobile home park residents" by THE CONVERSATION
  • "Residents have banded together to buy the park by forming a cooperative with external support" by THE CONVERSATION
  • "Many advocates are also pushing for rent control policies in mobile home parks" by THE CONVERSATION

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