As we move deeper into the second half of the year, significant shifts in federal policy are creating ripple effects across the investment landscape — particularly for those in the RV and mobile home park space. Between evolving tariff policies and the fast-tracked passage of a sweeping new tax bill, investors are being forced to navigate through a mix of opportunity and uncertainty.
Here’s a breakdown of how these legislative developments may impact park owners and how savvy investors can leverage these changes for long-term success.
Interest Rates Are Holding – For Now
Since March, interest rates have stayed within a tight range of 4.25% to 4.5%, with some recent downward momentum. This has offered a relatively stable environment for park buyers using financing, but it may not last. The newly increased debt ceiling means the U.S. Treasury is expected to issue hundreds of billions in new debt over the coming months — a move that could place upward pressure on rates.
For park investors, this may be the best window to lock in favorable financing before potential rate hikes take hold.
Uncertainty Around Tariffs Is Back
While interest rates are important, uncertainty is the real story in the market today. Earlier this year, the introduction of “Liberation Day” tariffs caused a spike in investor anxiety. A 90-day pause on new tariffs helped calm things slightly, but that pause ended on July 9.
Tariff rates remain the highest they’ve been since 1936, with Chinese goods facing nearly 28% effective tariffs and our major trade partners like Mexico and Canada carrying double-digit average tariffs as well. A few partial deals — including one with the UK and an agreement-in-principle with China — have done little to provide lasting clarity.
Investors in RV and mobile home parks don’t import manufactured goods on a large scale, but tariff-driven volatility can affect construction costs, manufactured housing pricing, and consumer behavior — especially for seasonal travel and long-term affordability.
The New Tax Law: Big Implications for Park Owners
The newly enacted tax bill brings with it a mixed bag for investors — and it passed through Congress at lightning speed. While many provisions are still being analyzed, some of the headline changes are directly beneficial for real estate investors, particularly those in the park space:
- 100% Bonus Depreciation is Back: New acquisitions now qualify for full first-year depreciation. This means massive potential for front-loaded tax benefits, making 2025 a compelling time to explore acquisitions or recapitalizations.
- Potential Budget and Policy Risks: The bill also includes significant reductions in federal program spending and adds roughly $3.3 trillion to the U.S. deficit. As a result, some economists warn that these cuts and the resulting market shifts may introduce more volatility in the short term.
What does this mean for park investors? Tax planning is more important than ever. Those who structure purchases and capital improvements wisely may significantly improve after-tax returns, especially in the first year of ownership.
Where Do We Go From Here?
Despite the flurry of legislative change and geopolitical uncertainty, the long-term fundamentals of RV and mobile home park investment remain strong. Healthy U.S. demographics, growing interest in affordable living, and the enduring appeal of RV travel support the case for continued optimism in this sector.
That said, the near-term risks cannot be ignored:
- Interest rates could edge higher if treasury issuance increases or if investor appetite for U.S. debt weakens.
- Tariff unpredictability may return if the current administration re-engages in new rounds of trade negotiations or uses tariff threats as leverage in unrelated policy disputes.
- Elements of the new tax law may still require clarification, leading to uncertain implementation and compliance requirements in the coming months.
How North Star Brokerage & Advisory Can Help
At North Star, we believe that uncertainty breeds opportunity — when you’re equipped with the right information and the right strategy. Whether you’re looking to acquire, refinance, or evaluate your park’s position in today’s market, our advisory team is here to guide you through:
- Investment underwriting tailored to this year’s tax advantages
- Broker Opinion of Value (BOV) reports reflecting current market dynamics
- Exit strategies that align with interest rate and depreciation timing
- Buyer matchmaking in an increasingly segmented investor landscape
Final Takeaway for Park Investors
If you’re thinking about buying or selling an RV or mobile home park in 2025, now is the time to act. With interest rates still relatively low and 100% bonus depreciation in play, there’s a strategic advantage to being early — before potential tax law clarifications or rising rates shift the playing field again.
Let’s talk strategy.
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