Attention Clients and Real Estate Professionals!!

The following is a summary of 2009 and 2008 Manufactured Home Community rent surveys by JLT & Associates.

Occupancy numbers DO NOT INCLUDE repossessed homes as reported by the on-site personnel. Please feel free to share this information with your staff and associates. As always, just call us at 808-283-3380 with any questions.

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NATIONWIDE SUMMARY

The surveys cover seventy-one major markets in the United States and include 753 “55+” communities with 203,107 homesites. The national occupancy rate decreased by .2% (-292 homesites) from 2008 to 2009. The national occupancy rate is 93%. 66% of the “55+” communities surveys are located in Florida.

Surveys include 1,318 “All Ages” communities with 369,098 homesites. The national occupancy decreased .7% (-2,112 homesites) from the 2008 to the 2009. The national occupancy rate is 82%. 51% of the “All Ages” communities surveyed are located in Michigan, Florida and Texas.

Average adjusted rents (rents after deducting services) in the “55+” communities increased 4.3% from $388 to $404 per month. Many communities include some service(s) such as water, sewer, trash removal, lawn mowing and/or cable TV in the monthly rent.

Average adjusted rents (rents after deducting services) in the “All Ages” communities increased 2.7% from $349 to $358 per month. Many communities include some service(s) such as water, sewer, trash removal, lawn mowing and/or cable TV in the monthly rent.

Repossessed Homes – The number of repossessed homes located in “All Ages” communities has decreased steadily from 2006. Approximately .5% of total “All Ages” homesites are occupied with repossessed homes, down 40% from 2006. The number of repossessed homes decreased by 7.6% from 2008 to 2009. Repossessed homes are not significant in “55+” communities.

Atlanta Executive Summary

Survey includes 42 “all ages” communities and 11,913 homesites. Occupancy numbers DO NOT INCLUDE repossessed homes as reported by the on-site personnel. The occupancy rate at November 2009 is 82%, a .8% decrease (-82 occupied homesites) over November 2008. The communities reported 88 repossessed homes, up from 74 repossessed homes at November 2008.

Only eight (8) communities (19%) reported occupancy rates of 95% or higher.

At November 2009, the average adjusted rent is $360, an increase of $4 (1.2%) over November 2008. During the past year, only twenty-nine (29) communities implemented rent increases. The increases ranged from $5 to $25.

Indiana Executive Summary

Surveys cover four major markets: Elkhart-Goshen, Fort Wayne, Gary and Indianapolis. The November 2009 surveys include 92 “All Ages” communities with 28,405 homesites and two “55+” communities with 340 homesites. Occupancy numbers DO NOT INCLUDE repossessed homes as reported by the on-site personnel.

The occupancy rates in the “All Ages” communities range from 69% to 81% and the occupancy rate in the two “55+” communities is 95%. The average adjusted rents in the “All Ages” communities range from $226 to $326 per month and the average adjusted rents in the “55+” communities is $281.

Elkhart-Goshen

The survey includes 17 communities. Fifteen (15) are classified as “All Ages” and 2 are classified as “55+”. The occupancy rate in the “All Ages” communities is 69%, down 1.7% (-56 home-sites) over November 2008 and the occupancy rate in the “55+” communities is 95%, the same as November 2008. The “All Ages” communities reported 42 repossessed homes, down from 49 repossessed homes at November 2008. Only one (1) community (6%) reported an occupancy rate of 95% or higher.

The average adjusted rent in the “All Ages” communities is $326, an increase $8 (2.5%) over November 2008 and the average adjusted rent in the “55+” communities is $281, an increase of $8 (2.9%) over November 2008. Sixteen (16) of the seventeen (17) communities implemented a rent increase during the past year.

Three communities can build 298 additional homesites: Parke Place Estates (136), Willows (75) and Winchester Trails (82).

Fort Wayne

The survey includes 21 “All Ages” communities. The occupancy rate is 75%, a .8% decrease
(-39 homesites) over November 2008. The communities reported 17 repossessed homes, down from 19 repossessed homes at November 2008. Only two (2) communities (10%) reported an occupancy rate of 95% or higher.

The average adjusted rent is $226, an increase $7 (3.2%) over November 2008. Fifteen (15) of the twenty-one (21) communities implemented a rent increase during the past year.

Three communities can build 267 additional homesites: Carrington Pointe (170), Edgewood Estates (37) and West Edge 50).

Gary

The survey includes 16 “All Ages” communities. The occupancy rate is 81%, a 5% decrease (-212 homesites) over November 2008. The communities reported 6 repossessed homes, down from 25 repossessed homes at November 2008. Only three (3) communities (19%) reported occupancy rates of 95% or higher.

The average adjusted rent is $312, an increase $5 (1.6%) over November 2008. Eleven (11) of the sixteen (16) communities implemented a rent increase during the past year.

Indianapolis

The survey includes 40 “All Ages” communities. Echo Lake was added to the survey in 2009. The occupancy rate is 76%, a 2.2% decrease (-209 homesites) over November 2008. The communities reported 36 repossessed homes, down from 59 repossessed homes at November 2008. Only seven (7) communities (18%) reported occupancy rates of 95% or higher

The average adjusted rent is $298, an increase $8 (2.8%) over November 2008. Only twenty-four (24) of the forty (40) communities implemented a rent increase during the past year.

Four (4) communities can build 584 additional homesites: Briarcreek (202), Camelot, (210), Deerfield Run (75) and Pebble Creek (97).

Ohio Executive Summary

Surveys cover four major markets: Cincinnati, Cleveland, Dayton and Toledo. The November 2009 surveys include 88 “All Ages” communities with 23,094 homesites and 11 “55+” communities with 2,482 homesites. The occupancy rates in the “All Ages” communities range from 78% to 86% and the occupancy rates in the “55+” communities range from 90% to 99%. Occupancy numbers DO NOT INCLUDE repossessed homes as reported by the on-site personnel.

The average adjusted rents in the “All Ages” communities range from $287 to $315 per month and the average adjusted rents in the “55+” communities range from $161 to $411.

Only five (5) communities (17%) reported occupancy rates of 95% or higher.

The average adjusted rent in the “All Ages” communities is $302, an increase $5 (1.7%) over November 2008 and the average adjusted rent in the “55+” community is $172, an increase of 6.8% ($11) over November 2008. Only eighteen (18) of the twenty-nine (29) communities implemented a rent increase during the past year.
     
Tradewinds can build 55 new homesites and East Fork Crossing can build an additional 136 homesites.

Cleveland

The survey includes 22 communities. Eighteen (18) are classified as “All Ages” and 4 are classi-fied as “55+”. The occupancy rate in the “All Ages” communities is 86%, a .6% increase (+26 homesites) over November 2008 and the occupancy rate in the “55+” communities is 90%, a 1.7% increase (+14 homesites) over November 2008. The communities reported 3 repossessed homes, down from 25 repossessed homes at November 2008.

Only two (2) communities (9%) reported occupancy rates of 95% or higher.

The average adjusted rent in the “All Ages” communities is $287, an increase $5 (1.8%) over November 2008 and the average adjusted rent in the “55+” communities is $357, an increase of $13 (3.8%) over November 2008. Only twelve (12) of the twenty-two (22) communities implemented a rent increase during the past year.

Austin Manor can build 19 new homesites and Columbia Park can build 27 to 57 new sites.

Dayton

The survey includes 22 communities. Seventeen (17) are classified as “All Ages” and 5 are classified as “55+”. Sunny Acres, Woods and Fairway Terrace were dropped from the survey in 2009. The occupancy rate in the “All Ages” communities is 78%, a 2% decrease (-78 homesites) over November 2008 and the occupancy rate in the “55+” communities is 95%, a 1.4% increase (+8 homesites) over November 2008. The communities reported 33 repossessed homes, up from 11 repossessed homes at November 2008.

Only eight (8) communities (36%) reported occupancy rates of 95% or higher.

The average adjusted rent in the “All Ages” communities is $315, an increase $6 (1.9%) over November 2008 and the average adjusted rent in the “55+” communities is $260, an increase of $9 (3.6%) over November 2008. Only twelve (12) of the twenty-two (22) communities implemented a rent increase during the past year.

Toledo

The survey includes 26 communities. Twenty-five (25) are classified as “All Ages” and 1 is clas-sified as “55+”. Deluxe and Lawndale were dropped from the survey in 2009. The occupancy rate in the “All Ages” communities is 82%, a 2.4% decrease (-119 homesites) over November 2008 and the occupancy rate in the “55+” community is 99%, a .9% decrease (-1 homesite) over November 2008. The communities reported 24 repossessed homes, down from 27 repossessed homes at November 2008.

Only three (3) communities (12%) reported occupancy rates of 95% or higher.

The average adjusted rent in the “All Ages” communities is $310, an increase of $6 (2%) over November 2008 and the average adjusted rent in the “55+” community is $425, an increase of $14 (3.4%) over November 2008. Only seventeen (17) of the twenty-six (26) communities implemented a rent increase during the past year.

Meadows of Perrysburg can build an additional 84 homesites.

Minneapolis – St. Paul Executive Summary

Survey includes 59 “All Ages” communities and 14,958 homesites. Occupied homesites DO NOT INCLUDE repossessed homes. Repossessed homes are not significant in this market. The occupancy rate at November 2009 is 90%, a decrease of 1.1% (-154 homesites) over November 2008. Community managers reported only 69 repossessed homes as of November 2009, up from 56 repossessed homes at November 2008. Only thirty-one (31) communities (53%) reported occupancy rates of 95% or higher.

At November 2009, the average adjusted rent is $345, an increase of $8 (2.3%) over November 2008. During the past year, only thirty-nine (39) communities implemented rent increases. The increases ranged from $3 to $30.

Oregon Executive Summary

Surveys cover four major markets: Eugene, Medford, Portland and Salem. The November 2009 surveys include 47 “All Ages” communities with 8,213 homesites and 42 “55+” communities with 6,924 homesites. The occupancy rates in the “All Ages” communities markets range from 83% to 95% and the occupancy rates in the “55+” communities markets range from 96% to 100%. Please note - Repossessed homes are not significant in these markets.

The average adjusted rents in the “All Ages” communities markets range from $354 to $461 per month and the average adjusted rents in the “55+” communities markets range from $363 to $509.

Eugene

The survey includes 22 communities. Eight (8) are classified as “All Ages” and 14 are classified as “55+”. Granada Estates was added to the survey in 2009. The occupancy rate in the “All Ages” communities is 90%, a 2% decrease (-30 homesites) over November 2008 and the occupancy rate in the “55+” communities is 98%, the same as November 2008. Repossessed homes are not significant in this market.

Sixteen (16) communities (73%) reported occupancy rates of 95% or higher.

The average adjusted rent in the “All Ages” communities is $354, an increase $8 (2.3%) over November 2008 and the average adjusted rent in the “55+” communities is $390, an increase of $13 (3.4%) over November 2008. Only sixteen (16) of the 22 communities implemented a rent increase during the past year.

Medford

The survey includes 11 communities. Five (5) are classified as “All Ages” and 6 are classified as “55+”. The occupancy rate in the “All Ages” communities is 95%, the same as November 2008 and the occupancy rate in the “55+” communities is 100%, the same as November 2008. Repos-sessed homes are not significant in this market.

Ten (10) communities (91%) reported occupancy rates of 95% or higher.

The average adjusted rent in the “All Ages” communities is $399, an increase $14 (3.6%) over November 2008 and the average adjusted rent in the “55+” communities is $407, an increase of $19 (4.9%) over November 2008. Only seven (7) of the eleven (11) communities implemented a rent increase during the past year.

Portland

The survey includes 40 communities. Twenty-eight (28) are classified as “All Ages” and 12 are classified as “55+”. Garden Meadows, Maple Lane, Smoketree, Olde Stone Village, Ridgewood, Sumner Estates and Sunrise were added to the survey and Fox Run and Homestead were dropped from the survey in 2009. The occupancy rate in the “All Ages” communities is 95%, the same as November 2008 and the occupancy rate in the “55+” communities is 96%, a 1% (-13 homesites) decrease over November 2008. Repossessed homes are not significant in this market.

Twenty-three (23) communities (66%) reported occupancy rates of 95% or higher.

The average adjusted rent in the “All Ages” communities is $461, an increase $7 (1.5%) over November 2008 and the average adjusted rent in the “55+” communities is $509, an increase of $12 (2.4%) over November 2008. Only twenty-eight (28) of the forty (40) communities implemented a rent increase during the past year.

Salem

The survey includes 16 communities. Six (6) are classified as “All Ages” and 10 are classified as “55+”. Bristol Park, Cumberland and Oak Point were added to the survey in 2009. The occupancy rate in the “All Ages” communities is 83%, a 4% increase over November 2008 and the occupancy rate in the “55+” communities is 98%, the same as November 2008. Repossessed homes are not significant in this market.

Eleven (11) communities (69%) reported occupancy rates of 95% or higher.

The average adjusted rent in the “All Ages” communities is $382, an increase of $14 (3.8%) over November 2008 and the average adjusted rent in the “55+” communities is $363, an in-crease of $10 (2.8%) over November 2008. Thirteen (13) of the sixteen (16) communities implemented a rent increase during the past year.

Seattle, Washington Executive Summary

Our survey includes 17 “All Ages” communities with 2,435 homesites and 33 “55+” homesites with 5,831 homesites. The occupancy rate in the “All Ages” communities is 98%, the same as November 2008 and the occupancy rate in the “55+” communities is 99%, the same as November 2008. One repossessed home was reported in this market.

Forty-eight (48) communities (95%) reported occupancy rates of 95% or higher.

At November 2009, the average adjusted rent in the “All Ages” communities is $470, an increase of $11 (2.4%) over November 2009 and the average adjusted rent in the “55+” communities is $510, an increase of $15 (3%) over November 2008. During the past year, only forty-two (42) communities implemented rent increases. The increases ranged from $12 to $25.

Texas Executive Summary

Surveys cover six major markets: San Antonio (Bexar County), Dallas (Dallas County), Denton/Lewisville (Denton County), Houston (Harris County), Ft. Worth/Arlington (Tarrant County) and Austin (Travis County). The September 2009 surveys include 170 “all ages” communities and 41,114 homesites. The occupancy rate at September 2009 for the six county area is 79%, a .2.2% increase (+702 net sites filled) over September 2008. The number of repossessed homes decreased during 2009. Only 175 repossessed homes were reported by the communities and were excluded from occupancy this year. At September 2008, the communities reported 229 repossessed homes.

Throughout the surveyed areas, rent increases ranged from 2.2% to 4.2%. For the six county area, average adjusted rent (rent after deducting services) increased 3% from $310 to $319 per month. Some communities include some service(s) such as water, sewer, trash removal, lawn mowing and/or cable TV in the monthly rent.

Potential development activity was noted in five of the six markets. 4,921 potential new sites can be developed. However, until market conditions greatly improve and chattel financing is more readily available for new customers, we do not expect that many new sites will be developed in these Texas markets. Information by market area is presented below.

San Antonio (Bexar County)

The survey includes thirty-four (34) communities. North Breeze and Val’s were added to the survey in 2009.

The current occupancy rate is 74%, a 3.8% increase over September 2008. The September 2009 occupancy rate does not include 32 repossessed homes (down from 54 at September 2008) reported by the communities. Only three (9%) communities reported an occupancy rate of 95% or higher.

The average adjusted monthly homesite rent is $283, an increase of 2.2% ($5) over September 2008. Only twenty-four (24) of the thirty-four (34) communities increased rents during the past twelve months.

Community owners can build 1,555 additional homesites in the following nine (9) communities: Northwest Trails, Garden Valley, Hidden Lake, Indian Hills, Stonebridge, Summit Ridge, Walzem Park and Woodlake Trails. Expansions are “on hold” until the market strengthens.

Dallas (Dallas County)

The survey includes 33 communities. Creekside Estates was added to the survey in 2009.

The current occupancy rate is 82%, a 2.9% increase over September 2008. The September 2009 occupancy rate does not include 30 repossessed homes (down from 33 at September 2008) reported by the communities. Only eight (24%) communities reported occupancy rates of 95% or higher.

The average adjusted monthly homesite rent is $309, an increase of 3.3% ($10) over September 2008. Twenty-seven (27) of the thirty-three (33) communities increased rents during the past twelve months.

Community owners can build 100 additional homesites in Redwood at the Lake. The expansion is “on hold” until the market strengthens.

Denton and Lewisville (Denton County)

The survey includes 20 communities. Denton, Hickory Creek and Pecan Creek were added to the survey in 2009.

The current occupancy rate is 81%, a 1.9% increase over September 2008. The September 2009 occupancy rate does not include 34 repossessed homes (down from 35 at September 2008) reported by the communities. Only eight (40%) communities reported occupancy rates of 95% or higher.

The average adjusted monthly homesite rent is $370, an increase of 3.1% ($11) over September 2008. Fourteen (14) of the twenty (20) communities increased rents during the past twelve months.

Houston (Harris County)

The survey includes 36 communities. The current occupancy rate is 80%, a 4.1% increase over September 2008. The September 2009 occupancy rate does not include 29 repossessed homes (down from 60 at September 2008) reported by the communities. Only fifteen (42%) com-munities reported occupancy rates of 95% or higher.

The average adjusted monthly homesite rent is $270, an increase of 2.7% ($7) over September 2008. Only twenty-two (22) of the thirty-six (36) communities increased rents during the past twelve months.

Community owners can build 658 additional homesites in the following four (4) communities: Lakewood Village Estates, Oak Crest of Manvel and Pine Trace. Expansions are “on hold” until the market strengthens.

Ft. Worth/Arlington (Tarrant County)

The survey includes 27 communities. Forest Hill and Indian Creek were added to the survey in 2009 and Oak Haven was dropped from the survey this year.

The current occupancy rate is 74%, a 2.8% decrease over September 2008. The September 2009 occupancy rate does not include 25 repossessed homes (up from 20 at September 2008) reported by the communities. Only seven (27%) communities reported occupancy rates of 95% or higher.

The average adjusted monthly homesite rent is $350, an increase of 4.2% ($14) over September 2008. Twenty (20) of the twenty-seven (27) communities increased rents during the past twelve months.

Lake Arlington Ranch can build an additional 478 homesites. The expansion is “on hold” until the market strengthens.

Austin (Travis County)

The survey includes 20 communities. The current occupancy rate is 87%, a 1.9% increase over September 2008. The September 2009 occupancy rate does not include 25 repossessed homes (down from 27 at September 2008) reported by the communities. Only ten (50%) communities reported occupancy rates of 95% or higher.

The average adjusted monthly homesites rent is $380, an increase of 2.7% ($10) over Septem-ber 2008. Seventeen (17) of the twenty (20) communities increased rents during the past twelve months.

Community owners have the capacity to build 2,230 additional homesites in the following eight (8) communities: Boulder Ridge, Pecan Branch, River Ranch, River Ridge, Saddlebrook and Sunset Ridge. Expansions are “on hold” until the market strengthens.


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John Turzer is the President of JLT & Associates, a full service real estate market research company specializing in the manufactured housing industry. The company conducts pre-acquisition and new community development market research, due diligence, a one-day sales training program and client specific consulting projects. JLT & Associates also prepares and markets manufactured home community rent surveys for 71 markets nationwide including Albuquerque, Atlanta, Las Vegas, Greater Phoenix, Tucson, Salt Lake City, Kansas City, Minneapolis/St. Paul, Raleigh, Charlotte, Seattle and major markets in Florida, Texas, Michigan, New York, Colorado, Oregon, Indiana and Ohio. He can be reach at (808) 283-3380, (808) 442-9950 (fax) or by email at JohnTurzer@gmail.com. Website: www.JLT-Associates.com.