Virginia Rubio has lived in a trailer park in Forks, Washington, for nearly 30 years. It's going to go up to $1,000.
There is no way to make the math work for a retired home care aide who lives on food stamps and Social Security. If she can't afford to rent the plot of land underneath her mobile home, she will have to give it up.
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"With an increase like this, I don't know what we can do," said the elderly man. All of us are afraid of losing our homes.
Increasing home prices and rents are cascading down to the country's mobile home parks, where heightened demand, low supply and an increase in corporate owners is driving up monthly costs for low-income residents. Private-equity firms and developers are interested in buying up such properties and turning them into more lucrative ventures, such as wedding venues and condominiums.
One of the most affordable housing options is a mobile home. Federal data shows that about 20 million Americans live in manufactured homes. As more people are priced out of traditional houses and apartments, those numbers are likely to rise.
The average price of a mobile home is less than $25,000 in Nebraska. According to an analysis of census data, they are three to five times cheaper than single- family homes.
Demand for affordable housing is putting pressure on the market. Census data shows that the average sales price of a manufactured home in the country has increased by 50%. Government figures show that new home prices rose 22%.
Mobile homeowners pay a fee to rent the land under their homes. Industry sources say that lot rents can go up between 4% and 6% a year. Few cities or states have rules regarding rent increases at mobile home parks.
"Land prices are going up, housing costs are going up and that's spilling into mobile homes," saidCasey Dawkins, a professor of urban studies and planning at the University of Maryland In cities and the suburbs there is a shortage of affordable housing.
At the same time, park owners and operators are facing higher costs for utilities, workers and property taxes, all of which are likely being factored into higher rents for lots.
In many cases, residents like Rubio don't enjoy the perks of homeownership because they don't enjoy the flexibility of renting or the tax breaks that come with it. Their biggest investment is their mobile home, yet it's useless if they can't afford to rent the land on which it is located. Residents are often beholden to the parks where they live because moving a mobile home can cost as much as $15,000. Rules governing when and how trailers can be transported can be found in many cities.
Kate MacTavish is an associate professor at Oregon State University who studies affordable housing and trailer parks. They can't just pick up and leave their homes.
In interviews with a dozen mobile home dwellers around the country, all said their rents had gone up this year. Some said their monthly payments had doubled or tripled. Many people said they had bought trailers after being priced out of apartments, homes and condominiums and were now unsure of where to go next. They used up their savings or took out high interest loans to buy manufactured homes. They were considering moving into a motel, crashing with friends or living in their cars until they found a more permanent home.
When she bought a mobile home for $5,000 in California six years ago, she thought it was a good investment. She said it was a mistake. In the six years she has lived at Knolls manor, her lot rent has nearly doubled to $1,700 a month, and she now takes up almost all of her Social Security disability checks.
"It's terrible, I left my sales job because of my health issues," said the 43-year-old woman. It's not possible to keep up. Do you pay rent, get your medicine, or use gas to get your child to school?
She said that the only way she could move was to give up her home. Studios can be had for $2,000 a month, and two-bedrooms can be had for $3,000. Many of her neighbors have been evicted and end up homeless, she said, and she fears she'll be living in her Chevy SUV with her rescue dogs.
Multiple requests for comment were not responded to by Bessire & Casehniser.
Private-equity firms including Stockbridge Capital, Carlyle Group and Apollo Global Management have been buying up mobile home parks in recent years. One of the first things they will do after taking over is to raise rents.
When parks change hands, industry groups say that rent increases are necessary to cover the costs.
Lesli Gooch, chief executive of the manufactured housing institute, said that when new owners come in, they're doing infrastructure upgrades, they're improving the streets and adding amenities, all of which are very important as these communities age. A lack of capital from the existing owners is one of the reasons why a community can change hands.
Increasing housing shortages have given park owners more leverage to increase rents as rising home prices force people out of apartments and houses. Many independent park operators are finding that they can raise rents without cutting into demand.
"These creditor owners will keep squeezing you and squeezing you until you run out of money," said Barbara, 78, who lives in a mobile home near Los Angeles where monthly rents went up 15% as soon as an institutional investor took over last year.
Barbara, who asked to be identified by her first name because of her fear of reprisal, lives on a fixed income and is a member of the 55 and older community. She lives on $1,700 a month in Social Security after retiring from her job as a commercial real estate broker.
She bought a $295,000 mobile home after selling her two-bedroom condo. She has spent another $30,000 to turn it into her dream home. She is unsure if she will be able to afford staying there for a long time. Fourteen mobiles are for sale in her park.
She said she did not know what to do. I was going to sell this but where do I go? All of my money was used to purchase this.
There are few rules governing rent increases or evictions at mobile home parks. Vermont requires park owners to give residents a chance to buy the property if they want to. In Oakland, Calif., manufactured housing is allowed in more parts of the town.
The stigma surrounding mobile home parks is one of the reasons that many cities ignore them. One of the only forms of affordable housing we have, we don't embrace it in ways that would make it better for families.
The housing market has worsened long-standing inequalities by making it easier to own a mobile home. According to a Consumer Financial Protection Bureau report, loans for buying manufactured homes often come with higher interest rates, limited opportunities to refinance, and less protection than typical mortgages. People who own site-built homes are more likely to fall behind on their housing payments than people who own mobile homes. Not being able to cover rent costs can lead to the loss of homes that residents do own.
Esther Sullivan is an associate professor of sociology at the University of Colorado at Denver and her work focuses on mobile homes. Their accrued wealth can be wiped out by a missed lot payment.
Sue Veal bought a mobile home in a 55 and older park in Rochester, New Hampshire, six years ago.
Over the last six years, listed rents have risen 50%. A friend in the park sold their mobile home for $220,000 in cash, almost double what they paid for it a few years ago.
"Prices are going up, but people are going to have nowhere to go," said Veal, who now gets about $2,000 a month in Social Security. Money is going to run out in a future where we're all concerned.
After her husband died, Linda denOuden traded in a two-bedroom apartment near Portland, Ore., for a mobile home. He had a life insurance policy that she used to purchase a $70,000 unit. She can't make ends meet on Social Security and a small pension because her lot rent is going up so much.
The man has stopped going to the doctors to save money. She hasn't gone to a dentist in a long time.
She said that living on a fixed income meant there was no room for extras. I am very close to losing everything I have. It's a constant worry for me.
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