The Value of Manufactured Housing Communities: A Dual-Ownership Model

48 Pages Posted: 29 Oct 2015

See all articles by Charles Becker

Charles Becker

Duke University - Department of Economics

Ashley Yea

Independent

Date Written: October 15, 2015

Abstract

There are roughly 50,000 manufactured housing communities (MHCs) in the United States, yet there appears to be virtually no academic research on their asset values. Using a detailed, proprietary database provided by Colliers International, we address this gap. We find that, due to the dual nature of rental and ownership in manufactured housing ownership, MHC values are driven by community rental income and thus affected by median month contract housing rents that surround the community. While value remains affected by traditional factors such as occupancy, location quality, and size of land, it emerges that manufactured housing community sales values are highly sensitive to local rental alternatives. We also find evidence that corporate MHC buyers pay less and sellers receive more for parks relative to smaller “mom-n-pop” owners.

Suggested Citation

Becker, Charles Maxwell and Yea, Ashley, The Value of Manufactured Housing Communities: A Dual-Ownership Model (October 15, 2015). Economic Research Initiatives at Duke (ERID) Working Paper No. 196. Available at SSRN: https://ssrn.com/abstract=2681222 or http://dx.doi.org/10.2139/ssrn.2681222

Charles Maxwell Becker

Duke University - Department of Economics ( email )

213 Social Sciences Building
Box 90097
Durham, NC 27708-0204
United States

Ashley Yea (Contact Author)

Independent

No Address Available

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