Why There’s No New Supply of Mobile Home Parks — And What That Means for Investors

“They’re not building more of them.”

That’s a phrase you hear often about mobile home parks — and it’s not just casual observation. It’s a hard, economic reality.

Unlike multifamily apartments or self-storage, there is no meaningful new supply of mobile home parks being developed in the U.S.

Here’s why that matters — and why it represents one of the most powerful tailwinds for investors in this space.

Reason #1: Local Governments Don’t Want New Mobile Home Parks

Most municipalities across the U.S. are hostile to the idea of approving new mobile home parks. Why?

Because from a city’s perspective, mobile home parks:

• Generate low property tax revenue
• Bring in families that require high service use (schools, infrastructure, etc.)

It’s a bad fiscal tradeoff for cities, so even in areas with clear housing shortages, new parks are effectively zoned out of existence.

Zoning hurdles and NIMBY sentiment make getting entitlements nearly impossible — even for experienced developers.

At Sunrise, we’ve reviewed over 1,000 MHP deals. The number of ground-up park developments we’ve seen approved? Fewer than a handful.

Reason #2: Existing Parks Are Being Redeveloped — Not Preserved

While cities block new parks, they’re also redeveloping existing ones. Parks located in urban or high-growth areas are being converted into:

• Apartment complexes
• Retail centers
• Mixed-use commercial developments

This trend shrinks the supply of MHPs year over year.

Even when parks are profitable and full, they’re often more valuable as land plays — especially if they’re sitting on infill land with upzoning potential.

Industry data shows the number of MHPs in the U.S. has declined each of the past 10 years, and that trend continues.

What This Means for Investors

For long-term investors, this shrinking supply is a major upside catalyst. Why?

• Scarcity Drives Value — No new supply + rising demand = price pressure upward
• Strong Rent Growth — Without overbuilding risk
• Cap Rate Compression — Increased investor interest drives asset values up
• Durability in Downturns — Affordable housing demand holds strong in recessions

Bottom Line

Most asset classes deal with the constant pressure of oversupply. Mobile home parks? The opposite.

There’s no meaningful new supply — and supply is actually shrinking.

For investors focused on long-term, durable cash flow and capital preservation, there are few tailwinds more powerful than this one.