Company possession of property is growing in the USA – elevating issues that it may lead to exploitative insurance policies towards tenants.
There are issues that extra company possession will lead to park homeowners mountain climbing rents, including charges, neglecting upkeep, or reducing workers.
Because the early 2000s, institutional traders resembling non-public fairness companies have elevated their presence within the manufactured housing market.
In 2020 and 2021, they accounted for 23% of all manufactured dwelling purchases, up from 13% between 2017 and 2019.
Jason Elridge, a resident consultant at MHAction and resident of Kristana Estates, mentioned: “Personal fairness companies are on the market to line their pockets and destroy reasonably priced housing
“Individuals have to have a neighborhood that may prosper and a spot the place they’ll really feel safe. I don’t assume non-public fairness can present that.”
The Personal Fairness Manufactured Housing Tracker comes from the Personal Fairness Stakeholder Venture (PESP) and Manufactured Housing Motion (MHAction).
The research additionally discovered that 23 non-public fairness companies personal over 1,800 manufactured housing parks within the USA, with over 377,000 heaps.
Michigan has a disproportionate share of personal equity-owned manufactured housing, the place non-public fairness companies personal greater than 25% of manufactured properties.
In the meantime a number of massive public worker pension funds and sovereign wealth funds have poured cash into manufactured dwelling park investments, together with the California State Academics Retirement System (CalSTRS), the sovereign wealth fund for the Authorities of Singapore (GIC), and the Washington State Funding Board (WSIB).
