Rep Talib highlights impact of private equity on Michigan's manufactured housing residents

The U.S. House Committee on Financial Services convened on May 15, 2025, to discuss innovative housing solutions aimed at expanding choice and increasing supply in America. The meeting highlighted the challenges faced by residents in manufactured housing communities, particularly those affected by private equity ownership.

One of the key discussions centered around the impact of private equity firms on manufactured housing communities. Representative Rashida Tlaib from Michigan shared a poignant example from her district, where a resident's rent increased by 65% following the acquisition of her community by a private equity firm. This situation has left many long-term residents, often on fixed incomes, struggling to afford their homes. Tlaib emphasized the emotional and financial toll on these residents, many of whom have lived in their communities for decades.

Testimony from housing experts underscored the detrimental effects of private equity ownership, including increased rents, displacement, and deteriorating living conditions. Witnesses noted that many residents, particularly veterans and individuals with disabilities, face significant hardships as a result of these changes. The discussion also touched on potential solutions, such as providing incentives for residents to purchase their communities, thereby transitioning to resident-owned models. This approach could enhance community upkeep and give residents a stake in their living conditions.

The committee explored the concept of resident-owned communities, likening it to the difference between renting an apartment and owning a condominium. By allowing residents to own their communities, they gain not only a sense of ownership but also the ability to influence decisions regarding their living environment.

Additionally, concerns were raised about the weakening of consumer protections for borrowers in the manufactured housing market. Witnesses warned that this trend could expose vulnerable residents to predatory practices, further complicating their housing situations.

The meeting concluded with a call for more robust protections and innovative solutions to address the housing crisis, particularly for those in manufactured housing. The committee's discussions reflect a growing recognition of the need for systemic changes to ensure affordable and stable housing options for all Americans.