By John Turzer

National community consulting firm, JLT, recently released new rent surveys for manufactured home communities in Texas, Ohio, Indiana, Atlanta and Minneapolis. Comments on each market below include the number of repossessed homes in each market, however, occupancy numbers do not include repossessed homes as reported by the on-site personnel

Texas Statewide Summary

The Texas 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 2004 surveys include 171 “all ages” communities and 43,707 homesites. The occupancy rate at September 2004 for the six county area is 78%, up 0.5% (154 filled homesites) over October 2003. 1,017 repossessed homes (2.3% of surveyed homesites) were reported by the communities were ex-cluded from occupancy this year. At October 2003, the communities reported 1,161 repos-sessed homes. Occupancy rates vary by county and are discussed on the following pages.

Throughout the surveyed areas, rent increases ranged from 2.7% to 3.7%. For the six county area, average adjusted rent (rent after deducting services) increased 3% from $253 to $261 per month. Some communities include some service(s) such as water, sewer, trash removal, lawn mowing and/or cable TV in the monthly rent. Only 71% of the communities increased rents during the past year (up from 67% for the prior year).

Potential development activity was noted in five of the six markets. 7,205 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 de-veloped in these Texas markets.

San Antonio (Bexar County)

The survey includes 34 communities. The current occupancy rate is 70%, a 6.3% increase over October 2003. The September 2004 occupancy rate does not include 154 repossessed homes (down from 188 at October 2003, 1.8% of surveyed homesites) reported by the communities.

The average adjusted monthly homesite rent is $245, an increase of 3.9% ($8) over October 2003. Only twenty-seven (27) of the thirty-four communities increased rents during the past twelve months.

What’s new in Bexar County? Clayton Estates Northwest opened 104 new homesites in Janu-ary 2004. Community owners can build 2,179 additional homesites in the following eleven (11) communities: Clayton Estates, Clayton Estates Northwest, Crestwood Estates, Garden Val-ley, Hidden Lake, Indian Hills, Stonebridge, Summit Ridge, Walzem Park, Woodlake Trails and Woodlake Estates.

Dallas County

The survey includes 30 communities. The current occupancy rate is 81%, down .7% over Octo-ber 2003. The September 2004 occupancy rate does not include 143 repossessed homes (down from 187 at October 2003, 2% of surveyed homesites) reported by the communities.

The average adjusted monthly homesite rent is $252, an increase of 3.3% ($8) over October 2003. Only twenty-four (24) of the thirty communities increased rents during the past twelve months.

What’s new in Dallas County? Clayton Crossing plans to open 158 new homesites in the Fall of 2004. Community owners can build 537 additional homesites in the following three (3) com-munities: Clayton Crossing, Clayton Estates Lavon and Redwood at the Lake.

Denton and Lewisville (Denton County)

The survey includes 20 communities. The current occupancy rate is 83%, down 4.3% over Oc-tober 2003. The September 2004 occupancy rate does not include 187 repossessed homes (up from 183 at October 2003, 3.2% of surveyed homesites) reported by the communities. Silver Dome was added to the survey this year.

The average adjusted monthly homesite rent is $283, an increase of 3.7% ($10) over October 2003. Only fourteen (14) of the twenty communities increased rents during the past twelve months.

Houston (Harris County)

The survey includes 38 communities. The current occupancy rate is 83%, down .9% over Octo-ber 2003. The September 2004 occupancy rate does not include 127 repossessed homes (down from 182 at October 2003, 1.4% of surveyed homesites) reported by the communities.

The average adjusted monthly homesite rent is $227, an increase of 2.7% ($6) over October 2003. Only twenty-four (24) of the thirty-eight communities increased rents during the past twelve months.

What’s new in Harris County? Woodland Estates opened 102 new homesites in November 2003. Community owners can build 658 additional homesites in the following four (4) commu-nities: Lakewood Village Estates, Oak Crest of Manvel and Pine Trace.

Ft. Worth/Arlington (Tarrant County)

The survey includes 28 communities. The current occupancy rate is 79%, a 3.3% increase over October 2003. The September 2004 occupancy rate does not include 180 repossessed homes (up from 178 at October 2003, 2.8% of surveyed homesites) reported by the communities.

The average adjusted monthly homesite rent is $270, an increase of 2.7% ($7) over October 2003. Only nineteen (19) of the twenty-eight communities increased rents during the past twelve months.

What’s new in Tarrant County? Twin Park Estates changed their name to South Arlington Es-tates. Community owners can build 1,387 additional homesites in the following three (3) com-munities: Chisholm Springs, Harston Woods and Lake Arlington Ranch.

Austin (Travis County)

The survey includes 21 communities. The current occupancy rate is 75%, a decrease of .8% over October 2003. The September 2004 occupancy rate does not include 226 repossessed homes (down from 243 at October 2003, 3.5% of surveyed homesites) reported by the communities.

The average adjusted monthly homesites rent is $313, an increase of 2.6% ($8) over October 2003. Only thirteen (13) of the 21 communities increased rents during the past 12 months.

What’s new in Travis County? Community owners plan to build 2,444 additional homesites in the following eight (8) communities: Boulder Ridge, Deerwood, Oak Crest, Pecan Branch, River Ranch, River Ridge, Saddlebrook and Sunset Ridge.


Ohio Statewide Summary

The Ohio surveys cover four major markets: Cincinnati, Cleveland, Dayton and Toledo. The November 2004 surveys include 96 “all ages” communities with 25,337 homesites and 11 “55+” communities with 2,426 homesites. The occupancy rates in the “all ages” communities range from 86% to 92% and the occupancy rates in the “55+” communities range from 91% to 100%.

The average adjusted rents in the “all ages” communities range from $260 to $267 per month and the average adjusted rents in the “55+” communities range from $151 to $343.

Cincinnati

The survey includes 30 communities. Twenty-nine (29) are classified as “all ages” and 1 is classi-fied as “55+”. The occupancy rate in the “all ages” communities is 89%, a .9% decrease over November 2003 and the occupancy rate in the “55+” community is 100%, an increase of 1% (2 homesites) over November 2003. The communities reported 145 repossessed homes, an in-crease of 9 over November 2003.

Only 8 communities reported occupancy rates of 95% or higher. The average adjusted rent in the “all ages” communities is $267, an increase $5 (1.9%) over November 2003 and the average adjusted rent in the “55+” community is $151, the same as November 2003.

Tradewinds can build 55 new homesites and East Fork Crossing can build an additional 159 homesites.

Cleveland

The survey includes 23 communities. Nineteen (19) are classified as “all ages” and 4 are classi-fied as “55+”. The occupancy rate in the “all ages” communities is 92%, the same as November 2003 and the occupancy rate in the “55+” communities is 93%, the same as November 2003. The communities reported 45 repossessed homes, an increase of 6 over November 2003.

Only 11 communities reported occupancy rates of 95% or higher. The average adjusted rent in the “all ages” communities is $260, an increase $6 (2%) over November 2003 and the average ad-justed rent in the “55+” communities is $287, an increase of $11 (4%) over November 2003.

Country Oaks can build an additional 28 new homesites, Austin Manor can build 19 new home-sites and Columbia Park can build 27 to 57 new homesites.

Dayton

The survey includes 25 communities. Twenty (20) are classified as “all ages” and 5 are classified as “55+”. The occupancy rate in the “all ages” communities is 86%, a 1% decrease over Novem-ber 2003 and the occupancy rate in the “55+” communities is 91%, an increase of 1% over No-vember 2003. The communities reported 86 repossessed homes, an increase of 22 over No-vember 2003.

Only 10 communities reported occupancy rates of 95% or higher. The average adjusted rent in the “all ages” communities is $267, an increase $10 (3.9%) over November 2003 and the average adjusted rent in the “55+” communities is $221, an increase of $8 (3.8%) over November 2003.

Toledo

The survey includes 29 communities. Twenty-eight (28) are classified as “all ages” and 1 is clas-sified as “55+”. The occupancy rate in the “all ages” communities is 89%, the same as Novem-ber 2003 and the occupancy rate in the “55+” community is 99%, an increase of 1% (1 homesite) over November 2003. The communities reported 68 repossessed homes, a decrease of 32 over November 2003.

Only 12 communities reported occupancy rates of 95% or higher. The average adjusted rent in the “all ages” communities is $265, an increase of $10 (3.9%) over November 2003 and the aver-age adjusted rent in the “55+” community is $343, an increase of $17 (5.2%) over November 2003.

Meadows of Perrysburg can build an additional 133 homesites and Lawndale can build an addi-tional 80 new homesites.

Indiana Statewide Summary

The Indiana surveys cover four major markets: Elkhart-Goshen, Fort Wayne, Gary and Indi-anapolis. The November 2004 surveys include 92 “all ages” communities with 28,823 homesites and two “55+” communities with 340 homesites.

The occupancy rates in the “all ages” communities range from 78% to 90% and the occupancy rate in the two “55+” communities is 82%. The average adjusted rents in the “all ages” communities range from $190 to $275 per month and the average adjusted rents in the “55+” communities is $256.

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 78%, a 1.5% decrease over No-vember 2003 and the occupancy rate in the “55+” communities is 82%, an increase of 3% over November 2003. The “all ages” communities reported 86 repossessed homes, a decrease of 36 over November 2003. Only one community reported an occupancy rate of 95% or higher.

The average adjusted rent in the “all ages” communities is $275, an increase $10 (3.8%) over November 2003 and the average adjusted rent in the “55+” communities is $256, an increase of $4 (1.6%) over November 2003.

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

Affordable Residential Communities (ARC) purchased the Hometown America portfolio in this market. They have implemented a rental home program to increase occupancy.

Fort Wayne

The survey includes 19 “all ages” communities. The occupancy rate is 85%, a 1.3% decrease over November 2003. The communities reported 114 repossessed homes, an increase of 12 over November 2003. Only 3 communities reported occupancy rates of 95% or higher. The av-erage adjusted rent is $190, an increase $4 (2.1%) over November 2003.

Three communities can build 265 additional homesites: Carrington Pointe (170), Edgewood Es-tates (45) and West Edge (50).

Gary

The survey includes 16 “all ages” communities. The occupancy rate is 90%, a 1.7% decrease over November 2003. The communities reported 49 repossessed homes, a decrease of 19 over November 2003. Only 6 communities reported occupancy rates of 95% or higher.

The average adjusted rent is $274, an increase $8 (3%) over November 2003. Pleasant Valley opened 75 new homesites during the past year.

Indianapolis

The survey includes 42 “all ages” communities. The occupancy rate is 83%, a 2.4% decrease over November 2003. The communities reported 146 repossessed homes, a decrease of 37 re-possessed homes over November 2003. Only 9 communities reported occupancy rates of 95% or higher

The average adjusted rent is $258, an increase $8 (3.2%) over November 2003. Four (4) com-munities can build 583 additional homesites: Briarcreek (202), Camelot, (210), Deerfield Run (75) and Pebble Creek (96).

Atlanta Summary

The Atlanta survey includes 44 “all ages” communities and 12,798 homesites. The occupancy rate at November 2004 is 85%, an increase of 0.6% (65 net homesites filled) over November 2003. The communities reported 187 repossessed homes, a decrease of 167 over November 2003. During the last year, many communities purchased repossessed homes at greatly reduced prices to keep the homes from being placed in other communities. Only 9 communities reported occupancy rates of 95% or higher.

At November 2004, the average adjusted rent is $295, an increase of $7 (2.5%) over November 2004. During the past year, only thirty-four (34) communities implemented rent increases. The increases ranged from $4 to $25.

Affordable Residential Communities (ARC) purchased the Hometown America portfolio in this market & implemented a rental home program to increase occupancy. Sun Communities re-cently completed the acquisition of three communities formerly owned and managed by Country-side Asset Management based in Boulder, Colorado.

Minneapolis – St. Paul Executive Summary

The Twin Cities survey includes 50 “all ages” communities and 14,336 homesites. Community managers stated that they collect the monthly rent from “some/a few” of the finance compa-nies. The occupancy rate at November 2004 is 96%, a decrease of 1.6% over December 2003. Community managers reported only 91 repossessed homes as of November 2004, a decrease of 16 repossessed homes over December 2003.

At November 2004, the average adjusted rent is $304, an increase of $10 (3.4%) over December 2003. During the past year, only thirty-eight (38) communities (76%) implemented rent increases. The increases ranged from $5 to $25.


The complete and in-depth survey for each market can be ordered through the MHI Bookstore by calling (800) 505-5500, ext. 646 or online by clicking here. Prices range from $159-$250 per market. Additional surveys prepared by JLT & Associates for 55 markets nationwide can also be ordered through the MHI Bookstore or online.

John Turzer is the president of JLT & Associates, a full service real estate market research company specializing in the manufactured housing industry.