This analysis was inspired by insights shared during "A Deep Dive Into The State Of Manufactured Housing And Self-Storage," a private webinar hosted exclusively for Long Angle community members featuring *Matt Ricciardella, Founder and CEO of* *Crystal View* in September 2025. The webinar provided members with firsthand operator perspectives on market dynamics, investment strategies, and performance metrics within the Manufactured Homes & Self-Storage alternative real estate sectors.

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Important Disclosures:

This content is for educational and informational purposes only and does not constitute investment advice, financial advice, trading advice, or any other sort of advice. Nothing in this analysis should be construed as a recommendation to buy, sell, or hold any investment or security, or to engage in any investment strategy or transaction.

Past performance does not guarantee future results. All investments carry risk, including the potential loss of principal. Alternative real estate investments, including manufactured housing and self-storage facilities, involve significant risks including but not limited to market volatility, liquidity constraints, regulatory changes, and operational challenges.

Before making any investment decision, you should consult with qualified financial, legal, and tax professionals who can provide advice tailored to your specific circumstances and objectives.

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Current Market Dynamics in Manufactured Homes and Self-Storage

The affordable housing landscape has shifted significantly, with median single-family home prices exceeding $500,000 while median incomes remain around $62,000. This gap has left approximately 65 million Americans unable to qualify for conventional mortgages, creating increased demand for alternative housing solutions.

This demographic shift has drawn investor attention to manufactured housing communities and self-storage facilities. Both sectors have historically shown resilience during economic downturns, though performance varies significantly based on location, management quality, and market conditions.

Housing Affordability Trends

Housing affordability metrics in 2025 show the median home-to-income ratio above 5, approximately 20% higher than 2019 levels. This trend reflects the combined impact of elevated home prices and persistently high mortgage rates, factors that have priced many middle-income households out of traditional homeownership markets. According to stats from Colliers - Bridging the Housing Gap:

In 2024, the median home price is set at $496,750
75% of households cannot afford the media priced home in 2024 ($495,750)
A projected loss of 337,000 affordable housing units within the next five years due to expiring affordability periods

These conditions have increased demand for manufactured housing as an alternative to site-built homes, while also driving storage needs as people adjust living situations and downsize.

Manufactured Housing Communities: 2025 Market Analysis

Manufactured housing represents 9.3% of new home starts, with approximately 106,000 units shipped annually. This segment has shown different growth patterns compared to site-built housing, influenced by regulatory environments and financing availability.

Current Performance Metrics

Recent industry data from SkyView Advisors, “Q1 2025 Manufactured Housing Industry Report” indicates:

Q1 2025 occupancy rates reached 94.9%, the highest level in two decades
Rent growth has averaged 5.7-7.3% year-over-year for four consecutive years
Net operating income grew 8.9% among leading REITs
Cap rates have compressed to 4.44% in top-performing assets

Geographic Variations: Markets such as Houston, Dallas-Fort Worth, and Phoenix have shown stronger performance metrics, benefiting from population growth and employment diversity. However, regulatory environments vary significantly by region, affecting development potential and operational requirements.

Supply and Development Constraints

A notable characteristic of the manufactured housing sector is limited new supply. Industry analysis shows only 5% of communities have been built since 1991, reflecting challenges including:

Zoning regulations that restrict development
Escalating land and development costs
Municipal approval processes
NIMBY (Not In My Backyard) opposition in many communities

This supply constraint has created varying market dynamics across different regions, with some areas experiencing significant pricing power while others face regulatory headwinds.

Operational Characteristics

The manufactured housing model differs from traditional rental properties in several ways:

Land Lease Structure: Park owners typically provide land and utilities while residents own their homes
Tenant Retention: Average tenant tenure reaches 21 years, partly due to relocation costs exceeding $8,000
Maintenance Responsibilities: Limited landlord responsibility for unit maintenance, as residents own their homes
Community Dynamics: Tenant satisfaction rates average 85%, influenced by affordability and community stability

Self-Storage Facilities: Performance Trends and Market Position

The self-storage sector has evolved significantly, with current nationwide occupancy rates maintaining 90%+ levels. After substantial post-pandemic growth, the market has begun normalizing, with revenue trends stabilizing following a brief correction of -0.3% year-over-year.

Market Segmentation

Performance varies notably across different segments:

Climate-controlled units have outperformed standard units in rent growth
Secondary markets have seen transaction volume double compared to previous periods
Urban facilities face different competitive pressures than suburban locations

Case Study: Operational Improvements

Crystal View's acquisition of a facility in Taos, New Mexico, provides insight into potential value creation strategies. Post-acquisition changes included:

Implementing market-rate pricing (resulting in 36% rent increases)
Maintaining 85%+ occupancy during pricing adjustments
Adding ancillary services including insurance and moving supplies
Focusing on operational efficiency improvements

This example illustrates how management changes can impact performance, though results may vary significantly based on market conditions and execution quality.

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Economic Models and Performance Drivers

Manufactured Home Community Economics

The manufactured home community investment model offers several operational characteristics:

Potential Advantages:

Lower capital expenditure requirements compared to traditional multifamily properties
High tenant retention due to relocation costs
Residents' equity participation in their homes

Operational Considerations:

Limited ability to increase revenue beyond lot rent adjustments
Regulatory compliance requirements vary by state and locality
Infrastructure maintenance responsibilities (utilities, roads, common areas)
Liability management across property and tenant-related issues

Self-Storage Revenue Models

Self-storage facilities generate revenue through multiple streams:

Base rental rates adjusted based on occupancy and demand
Ancillary services including insurance, retail sales, and tenant services
Technology integration for operational efficiency
Both consumer and commercial storage demand

Revenue optimization typically involves dynamic pricing models, though effectiveness depends on local competition and market conditions.

Investment Considerations for Alternative Real Estate

Many investment professionals allocate 5-15% of portfolios to alternative real estate, with manufactured housing and self-storage representing options within this allocation. Due diligence typically evaluates several key areas:

Operator Assessment Factors

Investors commonly evaluate:

Track record across different market cycles
Personal capital commitment and alignment of interests
Deal sourcing capabilities and market relationships
Experience with value creation and exit strategies

Geographic and Market Factors

Key considerations include:

Market diversification to avoid single-industry exposure
Economic stability and diversity of local employment base
Regulatory environment and potential policy changes
Competition levels and market saturation

Investment Structures

Typical structures in this sector include:

Preferred returns ranging from 7-9.5%
Profit sharing arrangements of 70/30 or 80/20 splits
Investment minimums from $50,000-$250,000 per fund
Hold periods of 5-7 years for value-add strategies

Timeline Considerations:

Years 1-2: Property acquisition and initial optimization
Years 3-5: Revenue growth and operational improvements
Years 6+: Exit planning or refinancing opportunities

Tax Implications and Structures

Both asset classes offer various tax benefits that can enhance after-tax returns:

Available Tax Strategies

Bonus Depreciation: Accelerated write-offs on qualifying improvements
1031 Exchanges: Capital gains deferral through like-kind exchanges
Cost Segregation: Accelerated depreciation schedules
Opportunity Zone Investments: Additional deferrals for qualifying properties

Professional Planning Integration

Tax strategies in alternative real estate investments require coordination with overall wealth management objectives. Recent tax legislation has maintained favorable treatment for real estate investments, though pending policy changes warrant ongoing monitoring.

Tax implications vary by individual circumstances and require consultation with qualified tax professionals familiar with alternative real estate investments.

2025 Market Outlook and Risk Analysis

Regulatory Environment

Several regulatory factors may impact these sectors:

Potential Headwinds:

Zoning restrictions that limit new supply development
Rent control discussions in multiple states, particularly in high-growth areas
Environmental compliance requirements for older properties
Financing market changes affecting acquisition and refinancing strategies

Market Support Factors:

Continued housing affordability challenges
Demographic trends including baby boomer transitions and first-time buyer constraints
Supply-side constraints in many markets
Growing institutional recognition of these asset classes

Risk Considerations

Manufactured Home Communities:

Liability exposures including property and tenant-related incidents
Regulatory compliance with housing regulations at multiple government levels
Environmental risks including water, sewer, and soil contamination
Natural disaster exposure requiring comprehensive insurance coverage
Community management challenges and tenant relations

Self-Storage Facilities:

Market saturation in certain areas
Competition from new construction and existing facilities
Economic sensitivity during severe recessions
Technology disruption and changing consumer storage needs
Operational risks including theft, damage, and abandonment issues

Long-term Market Drivers

Several trends may influence these sectors through 2030:

Continued housing affordability pressures
Demographic shifts affecting housing and storage needs
Supply constraints due to development restrictions
Institutional capital allocation trends

Market Summary and Key Considerations

The convergence of housing affordability challenges, demographic shifts, and supply constraints has created notable market dynamics in manufactured housing and self-storage sectors. Both asset classes have demonstrated historical resilience, though performance varies significantly based on multiple factors including location, management quality, and market timing.

Key Market Factors

Due Diligence Framework: Operator quality, market fundamentals, and property-specific factors typically determine investment outcomes more than sector-wide trends.

Tax Planning Integration: Available tax benefits including depreciation strategies, 1031 exchanges, and cost segregation can significantly impact after-tax returns, requiring specialized professional guidance.

Market Monitoring: Regulatory developments including rent control legislation, zoning reforms, and financing market changes can significantly impact performance and exit strategies.

Portfolio Context: These investments typically represent a portion of alternative real estate allocation within broader portfolio construction, with geographic diversification across stable, diverse economies helping reduce single-market exposure.

Institutional capital recognition of these sectors continues growing, potentially affecting future deal availability and pricing. Investors considering these opportunities benefit from thorough evaluation frameworks and clear investment criteria aligned with their broader wealth management objectives.

Want to Learn More About Manufactured Housing and Self-Storage Investment Opportunities?

Long Angle members regularly connect with vetted sponsors who have demonstrated track records in these alternative real estate sectors. Our community provides a trusted environment to evaluate operators, share due diligence insights, and discuss portfolio allocation strategies with peers who understand the complexities of wealth optimization at scale.

Members collectively deploy over $100M annually into these sectors, creating a network effect where successful builders share insights on which sponsors deliver, which markets perform, and how these investments integrate with broader wealth strategies.

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Frequently Asked Questions About Manufactured Homes & Self-Storage Facilities

What factors drive manufactured housing demand in 2025?

Demand primarily stems from housing affordability constraints, with the median home-to-income ratio remaining above historical norms. Supply constraints due to zoning restrictions and development costs also influence market dynamics, though regional variations are significant.

What are the primary risks in manufactured home community investments?

Key risk categories include liability exposures, regulatory compliance requirements, environmental risks, natural disaster exposure, and community management challenges. Successful operators typically implement comprehensive risk management programs including appropriate insurance, professional management, and legal compliance protocols.

How do manufactured home costs compare in 2025?

Pricing varies significantly by size, features, and region:

Single-wide homes: $100,000-$200,000
Modular homes: $150,000-$300,000+
Land lease costs: $300-$800 monthly (varies by location and amenities)

These levels maintain manufactured housing's affordability advantage while reflecting quality improvements and inflation pressures.

What performance metrics do manufactured home community operators typically achieve?

Performance varies widely based on management quality, location, and market conditions. Leading operators report net operating income growth averaging 8.9% with cap rates ranging from 4.44% in premium properties to higher rates in secondary markets.

What advantages do self-storage investments offer?

Potential benefits include recession resistance due to essential storage needs, lower maintenance requirements compared to residential properties, flexible lease terms enabling pricing optimization, and scalable operations through technology. However, performance depends significantly on location, competition, and management quality.

How do investors evaluate these opportunities?

Due diligence typically focuses on operator track record, market demographics, property condition, regulatory environment, and financial performance. Professional evaluation often includes physical inspections, market studies, and regulatory compliance reviews.

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Mobile Home Parks and Self Storage Investments in 2025

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