Q1 2026 Manufactured Housing Industry Report

Macroeconomic Highlights

The broader macroeconomic environment during Q1 2026 reflected continued stabilization across commercial real estate despite elevated interest rates and ongoing capital market uncertainty. Public real estate operators generally reported stable occupancy trends, continued rent growth, and resilient operating performance, while lenders including banks, life companies, and agency-backed financing sources remained active in the market for high-quality assets. Although borrowing costs remain elevated relative to prior years, transaction markets showed signs of gradual improvement as capital availability modestly increased and investors continued pursuing assets with stable cash flow characteristics. 

New supply growth across many property types also remains constrained due to elevated construction costs, tighter underwriting standards, labor shortages, and longer development timelines. As a result, many existing assets continue benefitingfrom limited competitive supply entering the market. At the same time, long-term demographic trends, ongoing housing affordability challenges, and continued migration toward lower-cost living options remain supportive of real estate demand fundamentals across multiple sectors. Combined with improving operational efficiencies and disciplined capital allocation, these conditions contributed to relatively stable property performance entering the remainder of 2026. 

Inflation and the 10-Year Treasury Since 2022

Inflation and the 10-Year Treasury Since 1962

Q1 2026 Manufactured Housing REIT Data Overview

Q1 2026 Manufactured Housing Operating Fundamentals

Manufactured Housing Rental Rates

Equity LifeStyle Properties, Sun Communities, and UMH Properties each reported continued rental revenue growth during the first quarter of 2026. ELS reported core community-based rental income growth of 5.7% year-over-year, primarily driven by rent increases for renewing residents and market rents paid by new residents, while full-year manufactured housing rent growth guidance remained at 5.1%–6.1%. Sun reported same-property manufactured housing rental revenue growth of 6.7%,while UMH reported same-property rental revenue growth of 7.6%, driven by 5% site rent increases and 412 additional occupied units compared to the prior year. 

ELS also highlighted housing cost differences across several markets, noting that average single-family home prices ranged from approximately $350,000 to more than $500,000 in core Florida markets, while new manufactured homes within its communities averaged approximately $100,000 and resale homes averaged approximately $50,000. In Phoenix and Mesa, ELS stated that single-family homes averaged more than $400,000 while homes within its communities averaged approximately $100,000 for new inventory and approximately $70,000 for resale inventory. Sun stated that manufactured housing serves as a critical housing solution supported by affordability and limited supply dynamics, while UMH stated there is pent-up demand for affordable housing in the markets where it operates. 

Rent per Site (Same Store)

Manufactured Housing Occupancy

Occupancy remained high across the manufactured housing portfolios discussed during the quarter. ELS reported manufactured housing occupancy of 93.9% during the quarter, or 94.4% adjusted for expansion sites added over the previous 12 months, while Sun reported same-property occupancy above 98% across its North American MH and RV portfolio. UMH reported that overall occupancy improved by 184 units to approximately 88%, driven by converting 166 homes from inventory into revenue-producing rental homes and increased occupancy within its existing rental home portfolio. 

ELS stated that homeowners represent 97% of its manufactured housing portfolio and said residents stay in its communities for an average of approximately 10 years. The company also stated that its California portfolio was approximately 99% occupied due to strong demand and housing value relative to surrounding markets. Sun stated that occupancy remained strong across its communities, while UMH reported approximately 11,200 rental homes operating at 94.6% occupancy and stated it expects to fill 800 or more new rental homes during 2026. 

Period Ending Occupancy (Same Store)

Manufactured Housing Income & Expenses

ELS reported core property operating revenue growth of 3.7%, core operating expense growth of 1.8%, and core NOI growth of 4.9% during the quarter. Sun reported North American same-property MH and RV NOI growth of 6.3%, with revenue increasing 5.9% and expenses increasing 5.2%, while same-property manufactured housing NOI also increased 6.3%. UMH reported rental and related income growth of 9% to $59.5 million, while same-property NOI increased 7.1% due to rent increases and occupancy gains. 

Expense growth remained a discussion point across all three REITs. ELS stated that utilities, payroll, and repairs and maintenance represent roughly two-thirds of its expenses and noted that it increased utility expense assumptions following an approximately 15% increase in oil prices since December. ELS also reported an approximately 18% reduction in property and casualty insurance premiums year-over-year. Sun stated that expense growth reflected payroll efficiencies and procurement initiatives, while UMH reported that community operating expenses increased 10% due to acquisitions completed during 2025, payroll and related costs, real estate taxes, water and sewer expenses, and severe winter-related costs across several Midwest and Northeast markets. 

YoY Rental Income Growth (Same Store)

YoY Expense Growth (Same Store)

YoY NOI Growth (Same Store)

Manufactured Housing Investment & Transaction Activity

Transaction activity remained selective during the quarter. ELS stated that the industry is currently experiencing low transaction volume and limited availability of quality assets for sale, though ownership remains highly fragmented and the company continues engaging with owners evaluating future decisions. Sun reported that it integrated more than $450 million of acquisitions completed during late 2025 and completed additional investments during the first quarter, including a manufactured housing acquisition in Michigan. Sun also stated that acquisition opportunities for high-quality manufactured housing and annual RV communities remain difficult to source. 

Expansion activity remained active across the sector. ELS stated it has added more than 1,100 manufactured housing sites in Florida since 2020 and currently has approximately 500 completed expansion sites in Arizona. UMH stated that it currently has approximately $45 million invested in 600 vacant developed expansion sites and plans to develop 300 or more sites during 2026. UMH also stated that these sites are already paid for and can increase revenue with limited additionalinvestment once occupied. 

Acquisition Dollar Amount History

*Excludes Sun Communities Acquisition of Park Holidays in April 2022 for $1.2 Billion

Manufactured Housing Cap Rates & Bid-Ask Spread

Sun provided the clearest cap rate commentary during the quarter, stating that manufactured housing acquisition opportunities are generally occurring in the low-to-mid 4% cap rate range. The company also stated that transaction opportunities remain limited and are more commonly occurring through one-off or small portfolio transactions. ELS similarly stated that its assets remain highly desired by investors and that the sector is currently experiencing low transaction activity due to limited available inventory. UMH did not provide direct cap rate commentary during the quarter. 

ELS also discussed current financing market conditions, stating that current 10-year secured loans are being quoted between 5.25% and 6.25% with 60%–75% loan-to-value ratios and 1.4x–1.6x debt service coverage ratios. The company also stated that life companies and GSE lenders continue showing interest in financing high-quality manufactured housing assets. Sun reported a weighted average debt rate of 3.4% with a weighted average maturity of 6.8 years, while UMH reported that 99% of its debt is fixed-rate with a weighted average interest rate of 4.92%. 

Implied Cap Rate History

*The implied cap rate data indicates the market value of each REIT.   

 

The implied capitalization rate is a culmination of the company value and total debt of each company divided by its NOI. 

  

Enterprise Value History

Headwinds in the Manufactured Housing Market

Higher interest rates, operating cost pressures, weather impacts, and delayed revenue realization from expansion investments were recurring themes during the quarter. UMH stated that earnings were impacted by increased interest rates, refinancing debt at higher rates, investment into rental homes and expansion lots not yet occupied, and seasonal headwinds that reduced sales activity and increased operating expenses. ELS stated that it increased utility expense assumptions following higher oil prices and also discussed marina restoration delays tied to prior hurricane impacts. Sun stated that transient RV visibility remains limited because a large portion of bookings occur within seven to ten days of arrival. 

Operating expense growth also remained elevated. ELS stated that utilities, payroll, and repairs and maintenance continue representing the largest components of its expense base. Sun discussed ongoing focus on procurement and expense discipline initiatives, while UMH stated that winter conditions across Pennsylvania, Ohio, Indiana, New York, and Tennessee increased water and sewer expenses, freeze-related maintenance, overtime costs, and snow removal expenses during the quarter. 

Tailwinds in the Manufactured Housing Market

ELS, Sun, and UMH each discussed affordability as a major driver of demand for manufactured housing communities. ELS highlighted the pricing gap between conventional homes and manufactured housing inventory across Florida, Arizona, and California markets, while Sun stated that manufactured housing serves as a critical housing solution supported by affordability and limited supply dynamics. UMH stated that there is pent-up demand for affordable housing in its markets and emphasized that its income stream is derived from approximately 24,000 families living within its communities. 

Demographic trends, operational investments, and future development pipelines were also discussed as long-term growth drivers. ELS stated that approximately 10,000 people per day are turning 65 through 2030 and that Gen X will continue supporting demand afterward. Sun discussed investments into data analytics, digital infrastructure, and operational systems designed to improve execution and resident experience. UMH highlighted approximately 3,240 vacant sites, continued rental home deployment, and pending legislation tied to Title I financing and manufactured housing regulations that management stated could strengthen the industry over time. 

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