(Bloomberg) -- Investors are pouring record levels of money into manufactured housing, seeking stability and yield as the need for affordable living options increases across the U.S.
Jones Lang LaSalle Inc. projects investment volume of $4.5 billion in mobile-home communities in the third quarter -- an all-time high on a trailing four-quarter basis.Ā
Valuations for the communities reached a record in the second quarter of $46,970 per pad, the real estate services firm said in a report. Occupancies also climbed to a new high, at 95.4%. And rents rose throughout the pandemic, to a record $800 a month on average.Ā
Manufactured housing is becoming an increasingly popular option as costs for more-traditional properties soar. Strong demand is expected to continue over the long term as the share of Americans over age 65 grows, JLL said. Mobile homes also are gaining favor as communities add more amenities, such as pools and gyms.
While private capital represented 72% of mobile-home investment this year, institutional investors are getting more involved. They accounted for 22% of total volume, the highest percentage on record, according to JLL. Ā Ā
Ā©2021 Bloomberg L.P.
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