Corporate ownership of property is increasing in the United States – raising concerns that it could result in exploitative policies against tenants.
There are concerns that more corporate ownership will result in park owners hiking rents, adding fees, neglecting maintenance, or cutting staff.
Since the early 2000s, institutional investors such as private equity firms have increased their presence in the manufactured housing market.
In 2020 and 2021, they accounted for 23% of all manufactured home purchases, up from 13% between 2017 and 2019.
Jason Elridge, a resident representative at MHAction and resident of Kristana Estates, said: “Private equity firms are out there to line their pockets and destroy affordable housing
“People need to have a community that can prosper and a place where they can feel secure. I don’t think private equity can provide that.”
The Private Equity Manufactured Housing Tracker comes from the Private Equity Stakeholder Project (PESP) and Manufactured Housing Action (MHAction).
The study also found that 23 private equity firms own over 1,800 manufactured housing parks in the USA, with over 377,000 lots.
Michigan has a disproportionate share of private equity-owned manufactured housing, where private equity firms own more than 25% of manufactured homes.
Meanwhile several large public employee pension funds and sovereign wealth funds have poured money into manufactured home park investments, including the California State Teachers Retirement System (CalSTRS), the sovereign wealth fund for the Government of Singapore (GIC), and the Washington State Investment Board (WSIB).
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