I suppose if you do anything long enough you start to feel this way.
In more than a decade as a mobile home park developer, investor, and manager, I have feelings about these properties that land on opposite ends of the love/hate spectrum. I’m grateful for these properties—they’ve allowed me to build and operate a successful business at Bridgeview Asset Management and enjoy a lifestyle I love. But knowing what I know also drives me (literally) to the point of insanity on a weekly basis. I can’t sum it up simply, but I’ve broken down why I’m so conflicted about these assets.
The good
Mobile home parks are great investments.
This shouldn’t surprise anyone: Mobile home parks can be fantastic investments. Since 2013, Bridgeview Asset Management has delivered an average IRR of 26% on almost $250 million of transaction value. I don’t have data for other operators, but I’d say this number isn’t an outlier — many in this space likely see similar returns. When properly operated, mobile home parks provide excellent stabilized cash flow and long-term appreciation for investors, plus unique tax benefits that make them even more appealing. What’s more, these properties are often undervalued, mismanaged, or misunderstood, so competent operators can transform them into high-quality properties without a full-blown redevelopment. This not only makes upgrades more capital-efficient but also prevents displacing existing residents.
You can help people fulfill their homeownership dreams.
Just as important as the investment side is the ability to meaningfully improve the quality of life and safety for tenants in what’s almost always the most affordable housing around. A unique feature of mobile home parks is that tenants can own their homes. When significant capital upgrades and long-term quality management are put in place, these homeowners benefit from better quality of life, safer communities, and tangible returns through increased home values. Preserving affordable housing long-term is a critical, overlooked way to boost affordable housing in the Pacific Northwest. The entire region suffers from a profound lack of new affordable housing, but we must also take care to prevent the existing housing stock from disappearing.
The bad
Bad actors also see opportunity.
A very real, very public downside is how easily unscrupulous owners can abuse these properties for their own gain. There are operators in the Pacific Northwest who’ve been mismanaging properties for years, to the detriment of tenants and the whole industry. The bad actions of a few have led to widespread negative reporting and stigma around mobile home parks and their owners and operators. The negative press is an overreach, a generalization, and an unfair characterization of the asset class, but it undeniably traces back to this small group of bad actors.
The regulatory environment is restrictive.
Regulations are part of any business, but the level to which some local governments have overstepped in trying to curb the actions of a few owners, creates a tough environment where tenants often suffer most. Rent control prevents capital investment into properties—without revenue increases to offset costs, operators often can’t invest in upgrades. Excessive tenant protections mean abusive and criminal behavior persists in manufactured home communities because the eviction process is so protracted, expensive, and complicated. That’s not to say that tenant protections aren’t needed. They are absolutely critical to preventing the abuse of low-income residents, but sweeping legislation makes it hard to operate as an ethical manager and often leads to decisions that hurt both communities and investors.
Unfair stereotypes create stigma.
I’ve written a separate article about the history of manufactured housing and the roots of many stereotypes that exist today, but these negative stigmas cause lasting damage to what should be seen as a key part of the affordable housing solution. Too often, manufactured housing is disregarded or outright excluded from large-scale proposals to create more housing stock sustainably. This has led to a tragic decline in new manufactured housing construction and development. These pervasive stereotypes also stop many from considering manufactured home residences, even with the possibility of lower housing costs and the potential for affordable homeownership and equity creation.
So, why do I stick with it?
Even writing this, I’m conflicted about how I feel. But I’m committed to staying in this industry and doing everything I can to continue our mission to preserve, create, and protect affordable manufactured housing in the Pacific Northwest. Despite the challenges, there’s enough opportunity to deliver value to investors and residents to keep me motivated.
The future is promising
There are plenty of reasons to be optimistic about manufactured housing in the Pacific Northwest. As I’ve said, it remains an excellent source of affordable housing while being a great investment vehicle for long-term, sustained returns. A recent influx of new technology and companies breaking into “modular homes” will bring advances that can easily translate to manufactured housing. Plus, while slow to change, there have been recent improvements in how manufactured housing is perceived at local and state levels, and even some federal standards are shifting to include manufactured housing in the broader housing conversation.
As a born optimist, I have no choice but to stay positive about the industry. I’m proud to ethically operate in the Pacific Northwest and strive to ensure value is created equally for investors and residents. One reason I keep at this is to make an impact (no matter how small) and help steer the future of manufactured housing in a positive direction.