Many things define this decade, but one of them is a significant shift in American attitudes towards homeownership.

Years ago, owning a home was one of the paramount goals of every young adult. They saw it as a place to live, to build their family, and an investment that would pay dividends down the line.

In the modern day, times have changed. People around the country are opting to rent instead of buy. You can decide whether or not this is a positive effect for our country, but no matter how you feel, it is undeniable that you can profit off of this effect. Below, we explain how.

Did You Know..

[gem_quote style=”4″ no_paddings=”1″]Homeownership peaked in 2004 at 70% of the population. Back then, the vast majority of people middle-aged and older owned a home. Additionally, many young people could afford to enter the market. In 2017, that rate dropped to 63%. This is as low as home ownership has been since 1965. It isn’t just young people that are sitting out the housing market, though. Every age group has seen a significant drop in ownership in the last 15 years.[/gem_quote]

Here is Why…

There are three critical reasons why this effect is taking place. The first is cost. Real estate value is continually rising, and many people do not have the money to buy into the market. Not only are mortgage payments expensive, but most purchases require a substantial down payment. People that are living paycheck to paycheck cannot come up with enough money for this initial payment or the monthly costs associated with a home.

The final factor is a shift in values. At one point, home ownership was a highly sought after goal that almost everybody worked towards. Now, the concept of owning a home has lost its luster, and people are deciding that renting is fine with them. Instead, they are choosing to spend their excess money on other things and pushing home ownership aside.

The final factor is a shift in values. At one point, home ownership was a highly sought after goal that almost everybody worked towards. Now, the concept of owning a home has lost its luster, and people are deciding that renting is fine with them. Instead, they are choosing to spend their excess money on other things and pushing home ownership aside.

What it Means For Your Portfolio

The logical assumption you can gather from this trend is that the housing market could be in trouble. This is a useful prediction for business owners that build and sell homes, but it is not a significant factor for you, the investor. The fact is, whether people are owning or renting, they are still living somewhere. This means that real estate is always valuable and there is money to be made by investing in it. Given that so many people are renting, the category that you should focus on for your investments is rental properties.

Lastly, real estate is incredibly safe. It never loses all of its value as other assets do, and it is inflation resistant. All of these factors combine to make rental properties an excellent investment opportunity. The next issue to address is which type of properties should you target.

Don’t Ignore This Real Estate Class

It’s not an asset class many brag about nor is it the latest fad on Forbes.com but mobile home parks are one of the best real estate investments year in and year out. MHPs tenants are stable and they never downsize. The yields are above-average, stable and it’s the one asset class that wasn’t affected in the 2008 downturn.

While Class A apartments and single-family homes may have more gross rental income, they also come with a higher degree of risk. If the economy takes a turn for the worse, the tenants will likely need to reduce their cost of living. When they do, rent is one of the expenses they will cut first. They will downsize, and you could be left with a non-performing investment.

Tenants in mobile home parks do not have the highs and lows of the other social classes. When you invest in mobile home parks, demand is never an issue. The reason is that mobile homes are one of the affordable living options in the whole country. While it seems counterintuitive to invest in an affordable rental property, it makes perfect sense when you invest at scale.

No matter how good or bad the economy is, there will still be families that need affordable housing. The consistent demand for mobile home parks continues to rise and Four Peaks Capital Partners is positioned to bring these great opportunities to Accredited Investors.

Check the availability of our latest investment offerings for Accredited Investors or call 1-844-209-3153