Company possession of property is rising in america – elevating considerations that it may lead to exploitative insurance policies towards tenants.
There are considerations that extra company possession will lead to park house owners mountaineering rents, including charges, neglecting upkeep, or slicing employees.
Because the early 2000s, institutional traders comparable to personal fairness companies have elevated their presence within the manufactured housing market.
In 2020 and 2021, they accounted for 23% of all manufactured house purchases, up from 13% between 2017 and 2019.
Jason Elridge, a resident consultant at MHAction and resident of Kristana Estates, mentioned: “Non-public fairness companies are on the market to line their pockets and destroy reasonably priced housing
“Folks must have a group that may prosper and a spot the place they’ll really feel safe. I don’t suppose personal fairness can present that.”
The Non-public Fairness Manufactured Housing Tracker comes from the Non-public Fairness Stakeholder Venture (PESP) and Manufactured Housing Motion (MHAction).
The examine additionally discovered that 23 personal 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 personal fairness companies personal greater than 25% of manufactured houses.
In the meantime a number of giant public worker pension funds and sovereign wealth funds have poured cash into manufactured house park investments, together with the California State Lecturers Retirement System (CalSTRS), the sovereign wealth fund for the Authorities of Singapore (GIC), and the Washington State Funding Board (WSIB).
