Competition Heats Up in the Mobile Home Market

Rising multifamily rents have fueled an affordability crisis in Southern California and many are calling for more affordable housing options. Where there is demand, there is almost certainly investment opportunity, according to Hunter Thompson, a principal at Cash Flow Connections. Investors are increasing exposure to more affordable niches—like workforce and low-income housing—and competition is heating up in the mobile home park market as well. Once considered a high-risk investment, investors are seeing more and more stability and NOI growth in mobile homes.

“We are seeing new competitors enter the space very frequently. This is particularly true of the mobile home park business,” Thompson tells GlobeSt.com. “Previously, most high net worth investors considered the mobile home park business a high risk investment mostly due to the unique risks associated with the tenant base; however, we are seeing a paradigm shift as more investors are becoming familiar with how favorable the business is an investment vehicle.” Cash Flow Connections is currently raising funds for a mobile home and self-storage fund, which has seen robust investor interest.