Valuations for manufactured housing communities hit an all-time high in the second quarter, buoyed by a surge in activity by institutional investors flooding the space. 

Early Q3 data shows that transaction volume has reached the highest trailing four-quarter level on record at $4.5 billion, and research from JLL suggests occupancy and rent will grow at a similar rate as demand for affordable housing continues apace.

"The need for affordable living options within the aging millennial population along with America's aging 55+ population present favorable demand tailwinds that are expected to drive mid- and long term demand for manufactured housing and promote innovation within the sector," a new report from JLL on the manufactured housing sector notes. "Beyond the affordability component, advancements in various technologies and the utilization of recycled materials are a few of the ways manufacturers are reducing energy consumption and waste, further attracting investors who are ESG focused."