Why Manufactured Home Communities Outperform – Evergreen Featured
Brad Johnson of Evergreen, based in Ladera Ranch, CA says manufactured home communities are “unbelievably reliable businesses.” To highlight that point, he notes that Equity LifeStyle Communities has notched NOI growth in every quarter since 1998.
“This would be impressive in any 20-year period, but considering this timeframe happened to include a nuclear-bomb housing crisis, it’s downright amazing,” says Johnson, whose two businesses own, operate and invest in manufactured home communities.
Over the long haul, a buy-and-hold investor in manufactured housing stands to earn the top risk-adjusted returns (8.1 percent) among all commercial real estate types, according to a May 2018 report from Green Street Advisors.
Johnson says the manufactured home sector is being buoyed by the wave of retiring baby boomers, many of whom aren’t financially prepared for life after work; a tight supply of manufactured home communities; and stagnant wage growth coupled with a spike in housing costs.