Why New Mobile Home Parks Are Rarely Built in Pennsylvania

3/16/2026

Why New Mobile Home Parks Are Rarely Built in Pennsylvania

Understanding the Barriers to Manufactured Housing Community Development

Manufactured housing communities — often called mobile home parks — play an important role in providing affordable housing throughout Pennsylvania. 

These communities offer a housing option that is often significantly less expensive than traditional site-built homes. Despite the continued demand for affordable housing, very few new mobile home parks are built in Pennsylvania today.

In fact, most of the manufactured housing communities operating across the state were developed decades ago, often between the 1950s and the 1980s. Today, while existing mobile home parks have become highly sought-after real estate assets, the development of new parks has become increasingly rare.

Understanding why this is the case requires looking at several economic, regulatory, and political factors that affect manufactured housing development across Pennsylvania.

 

Zoning Restrictions

One of the biggest obstacles to developing new mobile home parks in Pennsylvania is local zoning regulation. Land use zoning in Pennsylvania is controlled primarily by municipal governments, including cities, boroughs, and townships. Each municipality has its own zoning ordinance that regulates where certain types of development can occur.

Over time, many municipalities have adopted zoning regulations that:

  • prohibit mobile home parks entirely
  • restrict them to very limited zoning districts
  • impose large minimum lot sizes
  • limit density

These zoning restrictions can make it extremely difficult to locate land where a new manufactured housing community can legally be developed.

In some cases, municipalities technically allow mobile home parks but designate only very small areas where they may be built, which effectively prevents meaningful development. 

 

Community Opposition

Another major barrier to new mobile home park development is community resistance.

Local residents sometimes oppose manufactured housing communities because of perceptions about:

  • property values
  • neighborhood character
  • increased traffic
  • school enrollment impacts

Even when zoning technically allows a mobile home park, development proposals may still face significant public opposition during the municipal approval process.

Public hearings related to zoning approvals, conditional uses, or special exceptions often bring out strong opinions from nearby residents.

Because of this opposition, many developers choose to pursue other types of housing developments instead.

 

Infrastructure Development Costs

Developing a modern manufactured housing community requires significant infrastructure investment.

Typical infrastructure systems for a mobile home park may include:

  • water supply systems
  • sewer systems or treatment facilities
  • electrical distribution systems
  • internal road networks
  • stormwater management systems

These systems must be installed before homes can be placed on the property.

In many cases, the cost of installing infrastructure can be very high, especially when:

  • municipal water and sewer systems are not nearby
  • roads must be built from scratch
  • stormwater management regulations are extensive

Because mobile home park lot rents tend to be relatively modest compared with apartment rents, it can be difficult for developers to justify these infrastructure costs.

 

Higher Land Values

Land prices have increased significantly across many parts of Pennsylvania in recent decades. Higher land values often make mobile home park development financially challenging.

For example, the same parcel of land might generate more revenue if it were developed as:

  • single-family homes
  • townhome communities
  • apartment complexes
  • commercial development

Because these alternative developments may produce higher returns, developers often choose those options instead of manufactured housing communities.

 

Changing Development Economics

When many mobile home parks were originally developed decades ago, the economics of land development were different. Land was often less expensive, infrastructure regulations were less complex, and zoning restrictions were more permissive.

Today, the development environment has changed significantly.

Modern land development projects must comply with numerous regulations related to:

  • stormwater management
  • environmental protection
  • roadway standards
  • utility infrastructure

These regulatory requirements increase development costs and make manufactured housing communities more difficult to finance.

 

Financing Challenges

Another factor affecting new mobile home park development is financing availability. Lenders may view manufactured housing community development as a specialized real estate project with unique risks.

Because lot rents are typically lower than apartment rents, the projected revenue from a new park may not always justify the development costs. As a result, securing financing for new mobile home park development can sometimes be more difficult than financing other types of housing projects.

 

Changing Housing Development Preferences

Developers today often focus on housing types that generate higher revenue per acre. These developments may include:

  • suburban subdivisions
  • townhome communities
  • multifamily apartment developments
  • mixed-use projects

Because these projects often produce higher returns on investment, they may be more attractive to developers compared with manufactured housing communities.

 

The Result: Limited New Supply

Because of these challenges, very few new mobile home parks have been developed in Pennsylvania in recent decades.

Instead, the manufactured housing industry has focused primarily on:

  • acquiring existing communities
  • improving infrastructure
  • increasing occupancy
  • expanding homesite counts where possible

This limited supply of new communities has contributed to rising values for existing mobile home parks.

 

Why Existing Mobile Home Parks Are Valuable

Because new parks are rarely built, existing manufactured housing communities have become increasingly valuable real estate assets.

Investors are drawn to these properties because they offer:

  • stable rental income
  • long-term tenant retention
  • strong demand for affordable housing
  • limited competition from new development

This supply constraint is one of the primary reasons investor interest in mobile home parks has increased over the past decade.

 

Opportunities for Landowners

Although new mobile home parks are difficult to develop, opportunities still exist in certain circumstances.

For example, development may be possible when:

  • municipalities update zoning to allow manufactured housing
  • land is located in rural areas with supportive zoning
  • infrastructure is already available
  • communities seek affordable housing solutions

In these situations, manufactured housing communities may provide a viable housing option.

 

The Future of Manufactured Housing in Pennsylvania

As housing affordability becomes an increasingly important issue, manufactured housing communities may receive renewed attention from policymakers and planners. Some communities have begun to reconsider zoning policies in order to allow a wider range of housing types.

Manufactured housing may play an important role in addressing housing shortages in certain regions. 

However, zoning reform and local political support would likely be necessary for large-scale new development to occur. 

 

Final Advisory Perspective

Mobile home parks remain one of the most important sources of affordable housing in Pennsylvania, yet new communities are rarely developed today. Zoning restrictions, community opposition, infrastructure costs, and rising land values have made manufactured housing community development increasingly difficult.

As a result, most existing mobile home parks in Pennsylvania were developed decades ago, and the limited supply of new parks has contributed to rising property values.

For investors and property owners, this dynamic has made manufactured housing communities one of the most sought-after real estate assets in the state. 

As housing affordability continues to be a major issue across the country, the role of manufactured housing communities may become even more important in Pennsylvania’s housing landscape.