Grand Rapids, Michigan – JLT & Associates (JLT), a leading market research company for the manufactured housing industry, announced on March 26th, 2014 a 14-year summary report of its manufactured home community rent surveys for 13 Michigan markets.
Recognized by many as the industry standard for manufactured home community market analysis for over 20 years, JLT Rent Surveys provide detailed research and information on communities located in 72 markets throughout the United States, including the latest rent trends and statistics, marketing programs and a variety of other useful management insights.
The most recent JLT Rent Surveys for the Michigan markets were released in February 2014 and include 315 communities encompassing 107,528 homesites. This summary report is based on rent and occupancy trends from February 2000 to February 2014.
Findings and Observations
Occupancy Stabilizing
According to the summary, occupancy rates in Michigan “All Ages” manufactured home communities appear to have stabilized at an average of 74% occupancy in February 2014 after 12 years of consecutive declines. This reflects an overall decrease of 21.5% since a recorded high of an average 94.3% occupancy rate in February 2000. As of November 2013, the national average for All Ages communities is 82%.
Average occupancy rates among “55+” communities increased by a modest 1% to an average of 81.3% in February 2014, the first increase in 13 years of consecutive declines. Overall, average occupancy rates at 55+ communities are down by 14.7% since a recorded high of 95.4% in February 2000. The national average for 55+ communities as of November 2013 is 92%.
Regionally, as of February 2014, Michigan ranks 18th for average occupancy in All Ages manufactured home communities out of the 19 regions in which JLT rent surveys are published. Of the 14 regions that include 55+ communities, Michigan ranks 14th for average occupancy among this segment.
The recent modest, yet steady occupancy gains may reflect a positive outlook for expansion among community owners in the Michigan markets. Despite 14 out of 315 profiled communities in February 2014 reporting the ability to expand by a total of 2,417 homesites, expansion of any size has been limited over the 14-year summary period. A planned expansion in the Lansing, Michigan MSA is noteworthy because it is scheduled to bring 99 homesites to market by Spring 2014.
Rents Continuing Upward Trend
Average rents in Michigan manufactured home communities continue to show a positive upward trend following a prolonged period of minimal movement during the post-recession recovery.
In February 2014, the average adjusted rent in All Ages communities increased by 1.6% for the second consecutive year to $378, the largest increase since 2009. In comparison, the national average adjusted rent for All Ages communities increased 2.4% to $393, as of November 2013.
The average adjusted rent among 55+ communities in February 2014 increased by 3.1% to $399, the largest increase since 2007. By contrast, the average adjusted rent for 55+ communities nationally increased 2.4% to $444, as of November 2013.
Michigan manufactured home community rents ranked 13th out of 19 regions tracked by JLT for All Ages communities as of February 2014, and 11th out of 14 regions for 55+ communities.
All Michigan manufactured housing research is based on data published in JLT Rent Survey reports. Complete reports, including detailed information on manufactured home communities in 13 Michigan markets, are available for online purchase by major credit card at www.jlt-associates.com or by calling 800.588.5426. Each Michigan manufactured home rent survey, fully updated in February 2014, is a comprehensive look at investment grade properties within a market, enabling owners and managers, lenders, appraisers, brokers, and other organizations to effectively benchmark those communities and make informed decisions. ##
About JLT & Associates
For more than 20 years, countless professionals have trusted JLT & Associates for timely and accurate management reports on land lease manufactured home communities. JLT Rent Surveys are currently published for 72 markets nationwide and are recognized as the industry standard for community market analysis. In 2014, JLT merged its resources, skills and expertise with Datacomp, the industry’s oldest and largest national manufactured housing appraisal company, and MHVillage, the premier website for advertising manufactured homes for sale and rent in land lease communities. For more information, call 800.588.5426 or visit www.jlt-associates.com
Vice President, Marketing & BusinessDevelopment
MHVillage / Datacomp Appraisal / JLT &Associates
2600 Five Mile Rd. NE Suite 100
Grand Rapids, Michigan 49525
