What Does Warren Buffett Know That Most Investors Don’t?

When Warren Buffett moves, smart investors pay attention.

While many are distracted by the latest tech trends or speculative asset bubbles, Buffett — true to form — is making quiet, calculated moves in one of the most misunderstood and undervalued real estate sectors: Manufactured Housing Communities (MHCs).

Berkshire Hathaway’s Strategic Bet

Buffett’s interest in mobile home parks isn’t a casual one. It’s a long-term, vertically integrated play on affordable housing. Consider this:

• Berkshire Hathaway owns Clayton Homes, the largest manufacturer of manufactured homes in the U.S. — supplying thousands of new units each year.
• Clayton also owns 21st Mortgage, a leading lender for mobile home buyers, providing financing for buyers who often don’t qualify for traditional home loans.
• Through a joint venture, Berkshire co-owns Berkadia, one of the biggest capital providers in the MHC space, offering financing solutions to operators and institutional investors nationwide.

This isn’t just a bet on a product — it’s a bet on the entire ecosystem: from manufacturing, to financing, to the communities where these homes sit.

So Why Mobile Home Parks?

Buffett’s quiet confidence in this sector stems from the fundamentals — which, once you look past the stigma, are surprisingly strong:

• Limited Supply Meets Growing Demand: With zoning restrictions and NIMBYism preventing new parks from being developed, the supply of MHCs is shrinking — even as demand for affordable housing continues to rise.
• Recession-Resistant Cash Flow: Historically, MHCs have performed well during downturns. People may downsize, but they still need a place to live. Mobile homes offer one of the most affordable paths to homeownership.
• Sticky Tenants, Low Turnover: Moving a mobile home is expensive and logistically difficult. As a result, tenant retention is high — creating stable, predictable cash flow for owners.
• Increasing Institutional Attention: With low capex requirements and consistent returns, more institutional capital is flowing into the space — and Buffett’s moves are a prime example.
• Solving a Real Problem: Buffett isn’t just chasing returns — he’s addressing a pressing national issue: affordable living in a country where housing costs are spiraling out of reach for many.

The Buffett Playbook — Applied

Warren Buffett has always made his fortune by doing two things better than most:
Seeing value where others don’t — and having the patience to wait for that value to be realized.

Mobile home parks may not be flashy. But they’re efficient, resilient, and essential — and that’s exactly what makes them one of the most compelling real estate opportunities today.

As Buffett once said: “Be fearful when others are greedy, and greedy when others are fearful.”

So… what does Warren know that most investors don’t?

Now you do.