Manufactured housing parks: could their residents be buyers of the property?

Abstract

PurposeThe purpose of this article is to explore the possibility of people living in manufactured housing parks in Australia to collectively buy the property at fair market value and convert it into a resident owned community co-operative.Design/methodology/approachThe methodological approach is based on 20 interviews with occupants of resident owned communities (ROCs) and key informants in the USA state of New Hampshire. Residents' interviews provide an understanding of the motivations to want to own and self-manage the property.FindingsThe findings suggest that, based on USA experience and the availability of enabling financial structures, Australian residential park residents could be keen buyers of manufactured housing park properties.Research limitations/implicationsA limitation of this research was the small number of interviewees who were mainly people in ROC leadership positions and advocates. Another limitation was that no specific investigation was made to gauge manufactured housing park (MHP) residents' level of demand for ROCs in Australia. Although there was some evidence of support, further Australia-wide enquiry is needed.Practical implicationsThe sale of MHPs to resident co-operatives could become a new component of the property market in Australia and residents entering the market as buyers may cause a shift in market forces.Social implicationsROCs would offer greater diversity of housing choice and might further inform decision-makers of seniors and retirees' future intentions. Downsizers moving to ROCs could potentially increase the savings nest egg through the sale of the family home which will also free-up conventional housing for better utilisation by younger cohorts.Originality/valueOwners of residential parks are unlikely to have considered the tenants as potential buyers of the property, but, envisaging, ROCs could become a new type of tenure for Australians aged over 50 years.