Check Out MHCs for Consistent, Long-Term Returns, Says Greysteel SVP

In recent years, institutional investors have increasingly sought reliable, stable and affordable investments, particularly in response to economic volatility and inflationary pressures. Manufactured housing communities checked all these boxes.

“Over the past decade, institutional investors have become the dominant players in larger communities—100+ spaces—outpacing traditional private investors,” Cody Cannon of Greysteel told Multi-Housing News.

With more than 20 years of experience in investment sales and capital markets, Cannon recently joined Greysteel as the leader of the company’s national manufactured housing practice and Southern California market executive. This is one of the U.S. markets that provides attractive returns today due to growing housing affordability concerns, and competition among investors is fierce.

“Higher interest rates limit access to affordable capital, narrowing the investor pool to cash buyers or those with alternative funding sources,” Cannon added.

Here’s what else he told us about manufactured housing trends, his new roles and why California in particular is ripe with opportunity.

What drew you to Greysteel, and what excites you most about your new dual role?

Cannon: Greysteel’s brand and leadership. With over 20 years in this dynamic industry, I’ve had the privilege of working alongside exceptional leaders, brokers and clients worldwide. Greysteel’s platform and broker-centric support services, combined with its tremendous growth potential, drew me to this firm.

This role allows me to focus on client-facing representation for owners and investors of manufactured housing and RV communities nationwide. Our MHC team is in high-growth mode, and as its leader, my goal is to deliver expert advisory and transaction services. Additionally, I’ll support Greysteel’s expanding West Coast presence, leveraging my relationships to recruit top talent and serve our advisors.

How do you plan to balance national leadership of the manufactured housing team with overseeing Southern California operations?

Cannon: Balancing these dual roles requires a strategic approach and a focus on collaboration. My experience in leadership, management and active brokerage has prepared me to prioritize effectively, ensuring that both the national manufactured housing team and Southern California operations receive the attention and resources needed to thrive. By leveraging strong team dynamics and clear communication, I’m confident in my ability to drive success across both areas.

What are your priorities for the next 12 months?

Cannon: My priorities are twofold: growth and recruitment. I will focus both on expanding our national market share in the MHC space, and on attracting top-tier advisors and brokers on the West Coast during this explosive period in commercial real estate history.

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READ ALSO: 4 Reasons MHCs Outperform Despite Volatility

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Speaking of growth, manufactured housing is gaining increasing traction as an affordable housing solution. What’s driving this momentum?

Cannon: Federal, state and local governments are increasingly recognizing manufactured housing as a critical solution to the affordable housing crisis. Unlike multifamily housing, which faces regulatory hurdles and long development timelines, MHC and RV parks offer an existing, scalable option to meet demand. Also, manufactured housing offers consistent tenants, lower turnover, less intensive management and reduced capital needs, making it an accessible entry point for investors and a resilient asset class.

How has investor sentiment toward manufactured housing evolved over the past few years?

Cannon: Institutional investors, banks and large portfolio owners now dominate the space, outpacing traditional private investors. Institutional capital has driven consistent long-term growth and increased valuations in the MHC/RV ecosystem.

This shift is driven by the need for institutional capital to find stable, long-term investments, and MHC/RV communities have proven to be a reliable and resilient asset class. Their consistent returns, strong occupancy rates and growing demand make them an attractive option for institutional portfolios.

What makes California a critical market for manufactured housing growth?

Cannon: California’s manufactured housing market is uniquely positioned for growth due to the state’s acute housing affordability crisis and high demand for cost-effective housing solutions. With one of the highest poverty rates in the U.S. (adjusted for cost of living), over four in 10 households in California face unaffordable housing costs, and one in five households spend more than half their income on housing. Manufactured housing offers a viable alternative, providing affordability without sacrificing quality.

The average cost per square foot of a manufactured home is roughly half that of a site-built home, making it an attractive option for first-time buyers, retirees and low-to-moderate income households. Additionally, manufactured homes are increasingly incorporating energy-efficient and sustainable features, aligning with California’s strict environmental regulations and appealing to eco-conscious buyers.

Investor interest in manufactured housing communities is on the rise, driven by stable occupancy rates—94.8 percent nationally—and consistent rent growth, which has surged by over 20 percent since 2021. California, with its economic strength and persistent housing demand, remains a key market for these investments.

While regulatory challenges such as stringent zoning laws and building codes can slow development, recent efforts to streamline these processes are helping to promote manufactured housing as a scalable solution to the state’s housing crisis. California’s combination of high housing demand, affordability challenges and growing investor interest makes it a critical market for manufactured housing growth.

But there aren’t only opportunities out there. Are there any challenges investors and developers need to be aware of?

Cannon: California’s strict and complex development processes present challenges. However, the state’s economic strength and global appeal ensure it remains a solid base for long-term investment.