Demand for manufactured housing remains strong in the post-pandemic US, particularly as construction pipelines for the sector continue to be limited and the number of Americans over 55 increase.

Vacancy for the sector continues to sharply contract, with the steepest drops in the Great Lakes and Great Plains regions, according to Marcus & Millichap data. Vacancy rates remain tightest along the Pacific coast and are below 1 percent in Orange and San Diego counties in southern California.  Price appreciation also continues apace: about 95 percent of markets the firm surveyed for a new report reported higher monthly rates in 2021, though most reported rent growth below 10%. (By way of comparison, the average multifamily rent rose 15.5% last year, while the median single-family home price ticked up by 15.2%.)

Analysts don't appear threatened by recent and planned Fed rate hikes, however, noting that demand remains high. Increased lending costs are unlikely to significantly impact manufactured housing buyer activity over the second half of this year, according to Marcus & Millichap's senior market analyst Cody Young.