Whether you are Democrat or Republican, there is no question that mobile home park owners are likely to do very well under the Trump presidency. Here is an outline of the different issues that will help mobile home park owners, based on the agenda discussed so far.
Reduction or elimination of the SAFE Act and Dodd-Frank
One of Trump’s key items is the reduction of government bureaucracy, and that’s been a huge issue to mobile home park owners who wanted to sell their homes and carry notes. With the advent of the SAFE Act in 2008 and Dodd-Frank in 2010, anyone who created a mortgage was forced to get licensed and observe the same regulations as giant mortgage companies – clearly something that is impossible. As a result, most park owners dropped back to simply renting homes and denying needy Americans the ability to be homeowners. If SAFE and Dodd-Frank were repealed, it would allow park owners to go back to writing mortgages on their homes and letting people be homeowners instead of mere renters. And mobile home parks work better when the residents all their own homes, and are stakeholders in the business model.
Changes in the energy industry
The new stance on relaxing coal as an energy source will improve mobile home park economics in states that have coal mining as an essential part of their economy, such as Illinois and West Virginia. In addition, the re-opening of the Keystone and other pipelines will provide jobs in areas that could use some needed employment.
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A large number of mobile home park residents are contractors and laborers, and this group will receive a huge bonus in the form of new employment to repair our nation’s infrastructure. As these bridges, roads, airport and other projects are fairly much equally spread throughout the country, this directive will have a huge impact on many major mobile home park markets. And greater employment trickles down to other employers that are basic staples of mobile home park jobs, such as fast food.
Loss of focus on the coastal areas and more on the heartland
If you assume that the “red” states will gain more focus than the “blue” states under the new administration, then that could have a very positive impact on the heartland of America, which holds the majority of mobile home parks in the U.S. There are simply not many mobile home parks in the “blue” states – except for Illinois. The reason is that real estate values are very high on the coasts, and this has resulted in many mobile home parks being torn down and re-developed over time. Additionally, most cities stopped allowing new parks to be built in the 1980s, yet many fast-growing metro areas – such as found in California and Florida – had explosive growth in more recent times and therefore precluded mobile home park construction.
Every change in Presidential administration opens new avenues for business. The Trump presidency suggests many areas of change that our beneficial to mobile home park owners.
Frank Rolfe has been a manufactured home community owner for almost two decades, and currently ranks as part of the 5th largest community owner in the United States, with more than 25,000 lots in 28 states in the Great Plains and Midwest. His books and courses on community acquisitions and management are the top-selling ones in the industry. To learn more about Frank’s views on the manufactured home community industry visit www.MobileHomeUniversity.com.