Q4 2025 Manufactured Housing Industry Report

Macroeconomic Highlights

The broader macroeconomic environment reflected a gradual normalization following the volatility of recent years, providing a steadier backdrop for real estate performance across multiple sectors. Capital markets conditions showed modest improvement as lenders became more active and transaction activity slowly began to reemerge, even as borrowing costs remain elevated relative to earlier cycles. At the same time, development pipelines across many property types remainconstrained due to high construction costs and tighter financing conditions, limiting new competitive supply and supporting occupancy and rent growth within existing portfolios. 

Structural demand drivers also continued to support sector fundamentals. Persistent housing affordability challenges have sustained demand for cost-effective living options such as manufactured housing, while demographic trends—particularly the rapid growth of the aging population—are increasing demand for healthcare services and related real estate. Combined with improving capital markets conditions and limited new supply, these trends have contributed to resilient property performance and stable operating fundamentals as the industry moves further into 2026. 

Inflation and the 10-Year Treasury Since 2022

Inflation and the 10-Year Treasury Since 1962

Q4 2025 Manufactured Housing REIT Data Overview

Q4 2025 Manufactured Housing Operating Fundamentals

Manufactured Housing Rental Rates

Rental growth across manufactured housing REIT portfolios remained strong during 2025, supported by rent increases on existing residents and continued demand for affordable housing communities. UMH Properties reported site rent increases of approximately 7.6% year-over-year, which contributed to a 5.8% same-property NOI growth. Rental and related income reached $226.7 million for the year, representing 10% growth compared to the prior year, driven by rent increases, occupancy gains, and expansion of rental homes across its communities. 

Sun Communities reported 7.3% manufactured housing revenue growth, which translated into 8.8% same-property NOI growth during the fourth quarter and 8.9% for the full year, while operating expenses increased 3.2% within the segment. Equity LifeStyle Properties reported core community-based rental income growth of 5.6% for the year, driven by rent increases and higher market rents achieved through turnover, and guided to core manufactured housing rent growth between 5.1% and 6.1%. 

Rent per Site (Same Store)

Manufactured Housing Occupancy

Occupancy across manufactured housing REIT portfolios remained exceptionally high during the year, reflecting strong resident retention and limited new community supply. Sun Communities reported 98.1% same-property occupancy within its manufactured housing portfolio, highlighting the consistently high utilization levels across stabilized manufactured housing communities. 

Occupancy growth was also supported by community infill and rental home installations. UMH Properties reported adding 354 net occupied sites during the year, supported by the addition of 717 new rental homes across its communities. These additions expanded the company’s rental home inventory to approximately 11,000 homes operating at 93.8% occupancy, while turnover within the rental home portfolio remained approximately 20%. Equity LifeStyle Properties also reported strong occupancy across its communities, including approximately 96% occupancy within its California manufactured housing portfolio. 

Period Ending Occupancy (Same Store)

Manufactured Housing Income & Expenses

Operating performance across manufactured housing portfolios reflected strong rent growth and disciplined expense management. UMH Properties reported same-property revenue growth of 4.6%, which translated into 5.8% same-property MH NOI growth, while community NOI increased from $119.7 million to $130.7 million, representing 9% annual growth. 

Sun Communities reported 8.8% manufactured housing NOI growth during the fourth quarter and 8.9% for the full year, supported by 7.3% revenue growth and 3.2% expense growth. Equity LifeStyle Properties reported 4.8% full-year NOI growth and 4.1% fourth-quarter NOI growth, while maintaining core property operating expense growth of approximately 1%, reflecting continued operating efficiency across its communities. 

YoY Rental Income Growth (Same Store)

YoY Expense Growth (Same Store)

YoY NOI Growth (Same Store)

Manufactured Housing Investment & Transaction Activity

Manufactured housing REITs continued to deploy capital through acquisitions, expansions, and rental home investments. Sun Communities deployed approximately $457 million to acquire 14 manufactured housing and RV communitiesduringthe year, expanding its North American platform. The company also completed more than $200 million of non-strategic asset and land parcel sales, recycling capital into higher-growth investments and strengthening portfolio concentration in core markets. 

UMH Properties acquired five manufactured housing communities totaling 587 developed home sites for $41.8 million, with average occupancy of approximately 78% at acquisition, creating opportunities for future occupancy growth through site infill and operational improvements. The company also added 717 rental homes during the year, continuing to expand its rental home program as a key driver of occupancy growth and rental income. 

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

Capital markets for manufactured housing assets remained supportive, with lenders continuing to provide financing for stabilized communities. UMH Properties completed the refinancing of 17 communities totaling $193.2 million at a weighted average interest rate of 5.67%, with the communities appraised at $309 million compared with an original investment of $140 million, highlighting strong asset values and continued lender confidence in the sector. 

Transaction markets also remained selective as REITs maintained disciplined underwriting standards. Sun Communities indicated that its acquisition funnel remained large but that only a small portion of reviewed opportunities met its long-term investment criteria, reflecting continued pricing discipline and elevated seller expectations within the manufactured housing transaction market. 

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

Manufactured housing REITs identified several operational challenges during the year, primarily related to rising operating costs. UMH Properties reported community operating expenses increasing approximately 10% for the year and 12% during the fourth quarter, driven by higher payroll costs, real estate taxes, insurance premiums, and utility expenses. 

Weather conditions can also affect operational performance during certain periods. Seasonal weather patterns can delay home installations and move-ins in colder markets, temporarily slowing occupancy growth until conditions improve. 

Tailwinds in the Manufactured Housing Market

Demand for manufactured housing communities continues to benefit from strong affordability advantages relative to traditional housing. Equity LifeStyle Properties reported continued rent growth across its communities and highlighted the durable demand for manufactured housing driven by affordability and demographic trends. 

Rental home programs also continue to support community growth. UMH Properties reported rental homes costing approximately $75,000 to $80,000 per unit and generating monthly rents ranging from approximately $1,000 to $1,400 depending on the market, allowing the company to fill vacant sites while generating attractive returns on invested capital. 

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