Manufactured Housing Market Update – August 2025

August 5, 2025

Manufactured Housing Market Update – August 2025

Resilience. Stability. Performance.
At Capright, we’re proud to release our inaugural Manufactured Housing Market Update, providing a comprehensive analysis of one of the most durable and income-stable segments in U.S. commercial real estate.

Why Manufactured Housing?

MH continues to stand out in today’s market landscape. With high tenant retention, consistent cash flow, and limited exposure to new supply, MH offers an increasingly compelling case for institutional capital allocation, even in an environment marked by tighter credit and higher borrowing costs.

📊 Key Highlights from the August 2025 Update

• Same-store revenue growth averages 7.8% – led by strong operator performance
• Occupancy rates remain high – with SUI posting a sector-leading 97.3%
• Rent growth averaging 5.7% YoY – with renewal pricing still driving NOI
• Net dispositions hit $419M in 1Q25 – the largest quarterly outflow on record
• Implied cap rates compress to 4.44%, despite elevated Treasury and corporate bond yields
• Institutional capital continues to favor MH for its long-term income stability and minimal supply-side pressure

These insights are drawn from a detailed review of the public REIT space (specifically SUI, ELS, UMH, and MHC.U) as well as emerging trends among private institutional platforms.

Navigating an Evolving Sector

The MH sector is transitioning from yield-focused acquisition strategies to a more operationally disciplined phase. Operators are emphasizing:

• Internal value creation through rent optimization and reinvestment
• Selective acquisitions aligned with integration and return standards
• Capital preservation in a higher-rate environment

Despite slowing transaction volumes, MH fundamentals remain solid and, in many cases, outperforming other residential segments.

📬 Let’s Talk

At Capright, we are uniquely positioned to support institutional investors, operators, and developers navigating this evolving environment. As an independent valuation and advisory firm, we provide clarity, accuracy, and confidence, especially where the stakes are highest.

If you’d like to discuss the findings or need support with your Manufactured Housing valuation or strategy, reach out to: