Resident-Owned vs Investor-Owned Communities: What the Data Shows

The manufactured housing industry encompasses diverse ownership structures, from large institutional portfolios to resident-owned cooperatives. Understanding the trade-offs between these models is essential for investors, residents, and policymakers alike. Here's what 2025 data reveals about each approach.

Related reading: our communities overview and mobile home park investing guide. Industry background is available from the Manufactured Housing Institute.

The Ownership Landscape

Of the approximately 43,000 manufactured housing communities in the United States, ownership breaks down roughly as follows:

• Individual/Family Ownership: ~60% of communities (declining)
• Institutional Investors: ~25% and growing rapidly
• Resident-Owned Communities (ROCs): ~3-4% (~1,300 communities)
• Nonprofit/Mission-Driven: ~2%

Resident-Owned Communities: The Case For

Resident-owned communities, typically structured as cooperatives, offer residents direct control over their housing costs and community governance. Key advantages include:

• Rent stability: ROC lot rent increases averaged just 2.1% in 2025, compared to 5.2% for investor-owned communities.
• Community control: Residents vote on capital improvements, rules, and management decisions.
• Equity building: Monthly fees build cooperative equity rather than flowing to outside investors.
• Preservation: ROCs are effectively removed from the speculative market, ensuring long-term affordability.

Challenges Facing ROCs

Despite their appeal, resident-owned communities face significant challenges:

• Capital constraints: ROCs often struggle to fund major infrastructure improvements, relying on limited reserves and nonprofit lending programs.
• Management expertise: Volunteer boards may lack experience in property management, accounting, and regulatory compliance.
• Acquisition competition: When communities come to market, ROCs must compete with well-capitalized institutional buyers who can close quickly.
• Scale limitations: Most ROCs are single-property entities without the operational efficiencies of larger portfolios.

Professional Investor Ownership: A Different Model

Institutional ownership offers its own set of advantages for communities:

• Capital investment: Professional owners can fund significant infrastructure improvements—new roads, upgraded utilities, enhanced amenities—that may be beyond ROC budgets.
• Professional management: Dedicated property managers, maintenance staff, and compliance expertise ensure consistent operations.
• Economies of scale: Portfolio operators negotiate better rates on insurance, supplies, and services.
• Resident services: Larger operators often provide resident benefits programs, emergency assistance funds, and community programming.

Finding the Right Balance

The most successful investor-owned communities recognize that resident satisfaction and property performance are aligned. Operators who prioritize infrastructure quality, responsive management, and reasonable rent increases build long-term value while serving residents well. Data from 2025 shows that communities with high resident satisfaction scores also exhibit lower turnover, higher occupancy, and stronger NOI growth.

Our Approach

At Trailstead Capital, we believe responsible investor ownership can benefit both residents and investors. We commit to transparent communication, fair rent practices, capital investment in community infrastructure, and professional management that treats every resident with respect. Our goal is to preserve and improve affordable housing communities for the long term.