Posted September 8, 2020
CONCORD, N.H. – Each year, ROC USA® commissions a market rent study to measure how co-ops are doing relative to the market on the important question of affordability.
Colliers, the leading appraisal firm in the Manufactured (“Mobile”) Home Community sector, has just completed its analysis for the 11 Resident Owned Communities (ROCs) acquired in 2014.
This year’s results did not vary from the past. All 11 ROCs in this year’s study are operating at or below market rents.
“The story now is just how little the data varies – year after year it is clear,” said ROC USA President Paul Bradley. “Co-ops are stable in addition to secure.”
The data set includes a total of 36 ROCs in six annual cohorts. The cohorts represent co-op transactions from 2008 through 2014.
The average annual rent increase in these 36 ROCs is $3 per year, or 0.9%. This compares very favorably to industry average increases of 3.9% per year. (MH Insider, July/August 2019)
Average site fees across all six cohorts and 36 ROCs are now almost $350 per year below market after five years of resident ownership.
“We have seen it in our co-op, Green Acres,” said Lorie Cahill, Member-owner of Green Acres Co-op and President of the ROC Association Board. “We raised our site fees $15 a month to buy the community and another $10 in the last 10 years while investing well over $200,000 in improvements to water, sewer, roads and common areas.”
The 32-home co-op recently refinanced with ROC USA® Capital and will undertake another $100,000 in improvements without raising their site fees.
“Housing cost stability and security is essential to resilient communities – I am very proud of the Member-owners at Green Acres for demonstrating that local ownership really works,” Bradley said.
Calculate your Future Rent
To emphasize the affordability of living in a resident owned community, ROC USA created a rent predictor to showcase the differences in lot fees over time. Simply type your current monthly site fee payment in the top box and use the slider tool to select a year in the future.