Dear Investors,

We're witnessing an affordability crisis in the housing market which is creating significant opportunities in the mobile home park sector. 

The traditional housing market faces unprecedented challenges. 

The average American only earns ~$4,900 per month, making traditional housing costs over 50% of monthly income for many families.

• Yet, the average monthly mortgage payment for a new home: ~$3,000

• Whereas, the average lot rent in mobile home parks: $400-$700 

• Even with a manufactured home payment, the total monthly cost typically remains in the low $1,000 range

Construction Headwinds

Several factors have compounded the housing supply shortage:

• Construction timelines have doubled from 4 months in 1970 to 8 months today

• Labor and material costs remain significantly elevated

• Pending tariffs on lumber, steel, and aluminum imports expected in Q3 2025 will likely increase construction costs by an additional 8-12%

• America is estimated to be short 2-4 million homes according to economic analysts

Market Stability Factors

Unlike the 2008 housing crisis:

• Foreclosure rates remain low across all age demographics

• Lenders have maintained stringent standards, with mortgages primarily going to qualified borrowers

• Most homeowners have significant equity positions in their properties with a <4% interest rate and are unlikely to move anytime soon 

• The median age of homebuyers has increased to 56 years, up from 31 in 1981

Investment Implications

These market conditions create a compelling case for manufactured housing investments:

• The constrained housing supply with no wave of foreclosures on the horizon means housing will remain prohibitively expensive for half the country making well-managed MHPs increasingly valuable

• The affordability gap between traditional and manufactured housing continues to widen

• New housing supply will eventually increase, but construction costs and tariffs are a huge headwind keeping pricing high

We believe the current market environment presents a significant long-term opportunity in the manufactured housing sector. 

Our team continues to identify and acquire quality properties that can deliver both stable income and appreciation potential.

We welcome your questions about how these market trends might affect your investment portfolio.

Sincerely,

Vintage Capital