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Mobile home parks here and around the country are being bought up by private equity firms and wealthy investors.
It might seem like an odd investment. However, people who live in these parks often own their manufactured homes — but not the land they sit on. And they’re not actually very mobile.
The 2022 documentary “A Decent Home" tells the story of many of these mobile homeowners and their fight to stay in their homes when their rents were raised — or their land was sold out from under them.
Sara Terry spent seven years making the film, and it’s screening Friday, Aug. 30, at Glendale Community College.
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So what private equity found it could do was coming and raise lot rent — sometimes by as much as 60% and 70%. Which, you know, may not sound like much if you're going, "Oh, it went from $320 to $405." But think about if your mortgage was increased by 40%, 60% ... that is a huge impact on people…
No, that’s not correct at all. Raising rents from $320 to $405 is an increase of 27% NOT 60%. If you raise the lot rent from $320 to $405 that’s a $85 increase. The average mortgage payment in the U.S. is $2,715 per month (per Google). If you raised that by 27% that’s a monthly increase of $733 per month. THERE’S NO WAY YOU CAN COMPARE AN INCREASE OF $85 PER MONTH TO AN INCREASE OF $733 PER MONTH – that’s nearly a 10-for1 difference! Using this logic, McDonald’s raising the Dollar Menu price of the McChicken from $1 to $1.60 – a 60% increase – represents a much greater offense and financial burden than either of the above.
When you talk about price increases, the percentage means nothing and the actual amount means everything. If milk goes up 50% and a car goes up 5%, guess which one is a bigger problem for the average U.S. household?
How math challenged is America, anyway?