Manufactured Housing Sector Surges; New Park Goes Up
As the manufactured housing sector surges, new manufactured housing communities are springing up around Florida.
The manufactured housing sector has surged approximately 20% on a year-over-year basis. Not bad. Unless of course, you compare it to its last three years of monumental growth. Over that three-year time frame, the manufactured housing sector has increased over 100%.
The recently reported growth and the confidence driving it is largely accredited to President Donald J. Trump. Per Seeking Alpha, potential homebuyers within the affordable housing sector have felt buoyed by the Trump Presidency.
Manufactured Housing Sector Surges
- Manufactured Housing has been one of the best performing real estate sectors in 2017. The sector is up 20% YTD and more than 100% over the past three years.
- Manufactured Housing and RV residents are predominately from the rural working class: a group that has seen a dramatic surge in economic confidence since Trump’s election.
- Q1 earnings were very strong across the sector. The renewed economic confidence has already begun to translate into better new home sales and a willingness to own rather than rent.
- An increased propensity to own within these communities will be a positive catalyst and improve operating performance. REITs see the highest margins and lowest capex from leasing only the land.
- Job growth has been strong in the goods-producing sectors so far in 2017. Early evidence suggests that President Trump is indeed fulfilling his promises to the rural ‘forgotten’ working class.
News like that causes growth like this
Plantation Oaks of Ormond Beach, Florida has just announced they broken ground on a 1577-manufactured home development near the intersection of Interstate 95 at US Highway 1. An adult community targeting the 55 and older market sector, the developers are obviously looking at the future. As real estate prices continue to skyrocket – particularly for traditionally constructed, stick built homes – Plantation Oaks will introduce their manufactured homes starting in the low $120,000s range.
Also under construction in the Sunshine State, the report identified a new 6,900-home development that’s anticipated to feature a Jimmy Buffett-themed Margaritaville, landscape, façade … and hopefully a stage for Jimmy Buffett.
Excited by the additional developments, the developers of Plantation Oaks noted the new Margaritaville development “will be bringing a lot of people to the area.”