Manufactured housing has emerged as one of the most resilient and high-demand real estate sectors in recent years. Once considered a niche, it now accounts for roughly 7.4 million housing units in the U.S. (about 5% of total housing) and demand keeps climbing. In 2024 alone, over 100,000 new manufactured homes were produced – double the volume from a decade prior. Despite this growth in supply, national vacancy rates remain extremely low (around 5%), and leading manufactured housing community (MHC) operators report occupancy levels near 98-99% even across hundreds of properties. This tight occupancy, combined with the affordability of manufactured homes, positions the asset class as a defensive, stable income generator in investor portfolios.
For investors and owner-operators looking to scale their MHC portfolios, certain priorities have come to the forefront: predictable cash flow, compliance risk management, and operational efficiency. Below, we break down each priority and how “smart” strategies and software systems are helping small and mid-sized owners scale up — potentially growing from a handful of communities into portfolios rivaling the big players.
A Resilient Market with Predictable Cash Flow
Investors are drawn to manufactured housing for its reliable, predictable cash flows and strong long-term performance. Several factors contribute to this stability:
- Steady Occupancy & Sticky Tenants: Manufactured home communities consistently enjoy high occupancy rates (often 95–99% in established portfolios). Residents tend to stay for the long term because moving a manufactured home is costly and inconvenient. This “semi-permanent” aspect gives landlords longer tenant tenure, translating into consistent cash flow. For example, Sun Communities (a large REIT in the sector) reported its U.S. manufactured home sites 98% occupied at the end of 2024, with average occupancy around 97%+ over the past five years. Such stability is virtually unmatched in other real estate asset classes.
- Low Delinquency and Stable Income: Even through economic swings, MHCs have led in collection performance. As of mid-2025, the delinquency rate on manufactured housing community loans was just 1.39%, far below sectors like multifamily (6.19%) or office (10.99%) - credaily.com. This means rent collections are dependable, supporting predictable monthly cash flow for owners. In fact, the manufactured housing asset class remained notably stable during the 2020–2022 volatility, outshining many other property types in consistent income generation.
- Affordability-Driven Demand: The core demand driver is affordability. The average new manufactured home costs around $165,000 (for ~1,400 sq. ft.), versus a $410,000 median price for a site-built home - credaily.com. In an era of housing shortages and high prices, these communities provide attainable housing for millions (an estimated 21 million Americans live in manufactured housing communities). Strong demand ensures landlords can keep their lots full and rents (which are relatively low) reliably coming in. Even as interest rates rose in 2023–2024, sales of manufactured homes held steady around ~90,000 homes a year, indicating buyers and tenants continue to seek this affordable option.
The result is that investors prioritize maintaining these high occupancy and collection rates. They value tools that can forecast and protect cash flow – from software that automates rent collection and late notices to data analytics that flag early warning signs (like abnormal utility usage that might indicate a vacated unit or leak). Predictable income is the bedrock for scaling a portfolio, as it supports refinancings and acquisitions with confidence in the revenue stream.
Compliance and Risk Management: Protecting the Asset
Alongside cash flow, mitigating compliance risk is top-of-mind for savvy MHC investors. The manufactured housing sector comes with unique regulatory and operational compliance challenges. Owners must navigate landlord-tenant laws (which can include specific provisions for the manufactured housing space), safety standards, HUD code compliance for home installations, and even utility regulations within communities. Any misstep – from failing to properly notify residents of rent increases, to falling out of compliance with water billing rules – can result in fines or legal issues that erode an asset’s value.
Investors this year are prioritizing “asset protection” through rigorous compliance and risk management strategies. This includes:
- Monitoring Violations and Regulatory Changes: Staying on top of community inspections, tenant rule violations, and local ordinances is crucial. Modern MHC management platforms help by tracking violations and tasks – ensuring, for instance, that an expired permit is flagged or a safety issue is logged and resolved.
- Standardizing Lease and Legal Documentation: Small operators looking to scale are adopting the same rigor in paperwork as large institutional owners. Having standardized lease agreements, consistent screening processes, and digital document storage reduces risk. Many leading platforms integrate screening services (for background and credit checks) and provide templates that comply with state-specific laws, minimizing the chance of a legal slip-up. The goal is reducing compliance risk at every turn – something ManageAmerica emphasizes as core to its value, positioning its software as “purpose-built to protect revenue and reduce compliance risk.”
- Insurance and Asset Preservation: Protecting a physical asset like a manufactured home community also means mitigating natural and financial risks. Investors are focusing on adequate insurance coverage, preventative maintenance, and risk transfer strategies. Smart systems assist here by keeping complete asset records (of homes, infrastructure, equipment), scheduling preventative maintenance, and even facilitating insurance claims with proper documentation if incidents occur. Data analytics can play a role as well – for example, identifying patterns in property incidents or utility usage that might point to risks (like water leaks or electrical issues) needing attention.
In summary, investors know that scaling a portfolio is not just about growth, but sustainable growth. That means ensuring each community in the portfolio is run with safety and compliance at the forefront. By prioritizing compliance and risk management, owners protect their investments from unexpected hits and maintain the trust of residents, regulators, and financial partners.
Driving Efficiency for Scalable Operations
The third key priority is operational efficiency – finding ways to do more with less as a portfolio grows. Smaller owner-operators often run lean teams, and as they acquire more communities (sometimes in different states), the complexity can balloon quickly. Investors are therefore looking to streamline processes and even centralize operations to achieve economies of scale.
Efficiency and Scalable Ops initiatives trending this year include:
- Centralized Management Functions: Many portfolio owners are consolidating certain tasks at a regional or central office, rather than duplicating staff at every single community. For example, functions like accounting/bookkeeping, leasing calls, marketing, and even maintenance dispatch can be handled for multiple properties together. The multifamily sector has led the way here – what started as pooling a few leasing specialists has evolved into “multi-state, portfolio-wide combinations of administrative functions, resident services and data-collection” under one roof. Manufactured housing operators are now adopting these practices. By centralizing back-office tasks, an owner with 5 or 10 parks can often operate with the efficiency of a much larger entity, cutting overhead costs and standardizing quality. (One major apartment operator, BH Management, even eliminated most on-site assistant managers and runs centralized renter application and contact centers for 350+ properties – a model MHC owners can emulate at a smaller scale.)
- Embracing Automation and PropTech: From online rental applications to AI-driven customer service chatbots, technology is enabling small teams to handle large workloads. Innovations in property management software, CRM systems, and even AI tools are making centralized operations highly attractive. Investors want to ensure that as their portfolio doubles in size, their staffing costs don’t double as well. Smart workflows (like automated rent reminders, digital lease signing, virtual home tours for prospects, etc.) let an owner-operator scale up without sacrificing service or accuracy. The industry is witnessing greater use of digital marketing, online loan processing for home sales, and virtual showings – all boosting efficiency and customer reach.
Purpose-built solutions for manufactured housing are gaining favor over generic software. MHC operations have quirks – e.g., tracking both homes and the land lots, managing owner-occupied homes versus park-owned rentals, handling utility billbacks, and complying with unique state titling and eviction laws. Recognizing this, more owners are adopting software specifically designed for these communities. Such systems come with “tailored features such as resident communications, lot inventory tracking, utility billing integrations, and community-specific lease administration” out of the box. By using industry-specific tools, even a smaller operator can run a very tight ship. In fact, ManageAmerica (a leading MHC management platform) reports that clients switching from patchwork legacy systems have achieved up to 322% ROI improvement over three years with the efficiency gains and revenue capture of a modern platform. This kind of leap shows how impactful the right technology can be on the bottom line.
4 Emerging Trends: From Mom-and-Pop to Portfolio Pro
Beyond the core priorities above, a few broader trends are shaping how investors approach scaling in 2026:
1. Institutional Interest and Consolidation
Big-money investors (private equity firms, REITs, and large funds) have been increasing their stake in manufactured housing, attracted by those steady returns. Only about 20% of MHCs are institutionally owned today, so the space is still quite fragmented – but consolidation is speeding up. In 2020–2021, institutional buyers accounted for nearly a quarter of all community purchases, up from 13% a few years prior. Large operators like YES! Communities have assembled portfolios of hundreds of parks (≈74,000 home sites), and Sun Communities and Equity Lifestyle Properties each have portfolios in the hundreds of communities as well - pestakeholder.org . A recent headline-making deal is Brookfield Asset Management’s planned $10 billion acquisition of YES! Communities’ ~300 parks, a move that underscores how valuable scaled portfolios have become. For the smaller owner-operator, this trend means two things: there’s opportunity to sell at attractive prices if you build a quality portfolio, but also competition is rising. To thrive, mid-sized owners are trying to “scale smart” – adopting the same tools and best practices the big players use, while retaining the entrepreneurial agility of a smaller firm. Those who do so will be best positioned whether they choose to keep growing independently or partner with larger capital.
2. Centralized and Remote Operations
As mentioned, centralization is in vogue, and not just for cost-cutting. Investors have realized that centralized operations can actually enhance the resident experience and compliance by bringing specialized expertise. For instance, a central call center might handle resident inquiries more efficiently than busy on-site managers, leading to faster response times and happier tenants. We’re also seeing hybrid models – some firms cluster communities into regional “pods” managed by a team that floats between sites, leveraging both local presence and shared resources. The key takeaway is flexibility: centralization isn’t one-size-fits-all; it’s about finding the optimal blend for your portfolio and customers - multihousingnews.com. Forward-looking investors are piloting different approaches to see what yields the best efficiency and tenant satisfaction.
3. Technology Upgrades and Consolidation of PropTech Vendors
There’s a notable trend of tech consolidation in another sense: simplifying the proptech vendor stack. Rather than using 10 different software subscriptions, owners are seeking one comprehensive platform or a tightly knit set of platforms. This reduces costs and integration headaches. Additionally, many are upgrading from outdated systems (or manual processes) to modern cloud-based solutions that offer mobile access, better security, and frequent updates. The goal is to future-proof the operations. An integrated system also gives owners real-time visibility into portfolio performance, which is invaluable for investors managing risk. In 2025, we’ve seen even smaller operators investing in these tech upgrades early, knowing it will pay dividends as they expand.
4. Asset Preservation via Smart Maintenance:
Protecting the physical asset has gained renewed focus, especially after some widely reported infrastructure failures in older communities (e.g. aging utility lines or roads). Investors are prioritizing capital improvements and using software to strategically manage capital expenditure (CapEx). Tools that track the lifecycle of infrastructure (water pipes, electrical systems, street pavings, common facilities) help owners plan repairs before emergencies strike. Some platforms incorporate asset management modules that manage asset lifecycles and depreciation, ensuring nothing falls through the cracks as portfolios grow. This proactive stance not only safeguards the value of the properties but also keeps residents safe and satisfied. It’s part of the broader “asset protection” mindset – treating these communities as long-term investments that need continuous care, not just rent collection. By leveraging data (like work order histories and inspection reports), investors can direct resources to the highest-risk areas first. The end result is a portfolio that scales without deteriorating quality or incurring surprise losses.
Software & Smart Systems: The Secret to Scaling Smarter
Bringing it all together, a common thread through these priorities and trends is the use of software and smart systems as force-multipliers for MHC owners. A decade ago, a “mom-and-pop” park owner might track rents in a ledger and handle everything on-site. Today, even a mom-and-pop can plug into a cloud-based platform and operate with the sophistication of a national operator. This levels the playing field and allows ambitious owners to grow their holdings without growing their headaches.
Property management software, in particular, is the linchpin of scalable operations. The best solutions today are designed specifically for manufactured housing operations, meaning they understand the nuances of the business. They allow an owner to track every home and lot, each resident and lease, utility readings, and payments in one system. Tasks that once took hours of paperwork – like reconciling utility billbacks or updating rent rolls – can be automated. As an example, ManageAmerica’s platform was built exclusively for the manufactured housing industry and has spent 25+ years addressing its toughest challenges to help owners and operators scale, reduce risk, and increase NOI in ways generic systems often can’t. This includes features like vacancy classification specific to lots or role-based (and even individual-based) access so onsite managers see only what they need. By implementing such purpose-built tools early, small and mid-size investors set themselves up to “scale smarter.”
Let’s illustrate with a hypothetical case: Suppose you own 5 communities and plan to acquire 5 more. With a smart management system in place, you could centrally monitor all 10 properties: view live occupancy and rent collection data, ensure every lease across states uses compliant templates, and easily program rent increases globally. You might have a single dashboard showing that Community A has 2 vacant homes ready to fill, Community B has a delinquency that needs attention (prompting an automated reminder to the resident), and Community C has a pending license renewal next month. This level of control and insight is virtually impossible with ad-hoc manual management, but quite feasible with today’s tech. It not only saves time and reduces errors, but enhances the scaling process – you’re far less likely to drop a ball that leads to revenue loss or legal trouble.
Furthermore, robust software helps demonstrate professionalism to partners and capital providers. If you seek bank financing or bring in outside investors (like a private equity partner or passive LP investors in a syndication), having solid systems inspires confidence. It shows you can handle growth. In fact, many private equity firms encourage or even require their operating partners to implement top-tier management software as part of scaling up, to ensure consistent reporting and controls. It’s telling that the “big dogs” of the industry rely on such systems – they wouldn’t be managing tens of thousands of sites without them. For example, one prevalent combo in the market is a tech stack of integrated solutions (investment management software + a specialized MHC property management system + integrated accounting), which has become a proven formula for scaling efficiently. Small and mid-sized owners are wise to learn from this and invest in similar capabilities on a right-sized scale.
Conclusion: Scale Smarter, Not Harder
The U.S. manufactured housing sector in 2026 offers tremendous opportunity for growth. Investor interest is high and the fundamentals – from predictable cash flows to a massive affordable housing demand – form a strong tailwind. By focusing on the priorities of stable income, rigorous compliance, and efficient operations, and by embracing the tech-enabled strategies to achieve them, even modest operators can punch above their weight class. The difference between muddling through growth and scaling smart often comes down to systems and mindset. Those who treat their portfolio like the institutionally prized asset it is – leveraging data, software, and strategic processes – will find they can grow faster and with fewer growing pains.
At the end of the day, the goal for any investor/owner is to enjoy the upside of a larger portfolio without a proportional increase in risk or workload. In manufactured housing, that goal is more attainable than ever before. As you plan your next moves – whether it’s acquiring a new community, streamlining your operations, or fortifying your asset management playbook – remember that you don’t have to do it alone or with outdated tools. The right platform can be a game-changer for the trajectory of your business. See why leading investors choose ManageAmerica to scale smarter and how a purpose-built solution can transform your manufactured housing portfolio strategy.
