The Delaware Coast's New Housing Frontier: Small Homes, Big Idea

REHOBOTH BEACH, DE – December 02, 2025 – In a bold move to address the Mid-Atlantic's escalating housing affordability crisis, real estate investment firm JLAM has unveiled plans for Pinevale, a 154-unit community in Lincoln, Delaware. The project, which converts a former campground into a modern neighborhood, is built on an innovative but often misunderstood foundation: park model homes paired with a land-lease ownership structure. This development represents a significant test case for a housing solution that aims to deliver the dream of coastal living at a price point accessible to first-time buyers, working families, and retirees.

While the luxury market often focuses on sprawling estates and high-rise penthouses, JLAM's Pinevale signals a strategic pivot toward a growing and critical market segment: attainable housing. By rethinking the very definition of a single-family home, the project challenges conventional development models and offers a potential blueprint for creating high-quality, community-centric living spaces that don't require a seven-figure budget.

A Market Ripe for Innovation

The timing for Pinevale could not be more critical. Sussex County, like many desirable coastal regions, is grappling with a severe housing shortage and runaway prices. According to recent data, the median listing price in Lincoln has surged to nearly $580,000, a figure that starkly contrasts with the county's median salary of around $71,000. This widening gap between income and housing costs has effectively locked a significant portion of the local workforce and prospective residents out of the homeownership market.

A 2023 report from the Delaware State Housing Authority (DSHA) underscored this dilemma, revealing an oversupply of traditional single-family detached homes and a critical need for more diverse housing stock. The report projected that the state needs to add over 24,000 new housing units by 2030 just to keep pace with growth, a target that current construction rates are failing to meet. For decades, the dominant development pattern has not adequately served the needs of moderate-income households, creating a ripple effect that impacts local businesses struggling to retain staff.

Pinevale is designed to directly target this market failure. By separating the cost of the home from the cost of the land, it dramatically lowers the financial barrier to entry, a key pain point identified in the DSHA's findings on declining homeownership rates among younger demographics.

Deconstructing the Park Model Solution

Central to JLAM's strategy is the use of park model homes. Often confused with traditional manufactured or mobile homes, park models occupy a unique niche. Legally classified as recreational vehicles (RVs) to maintain a footprint under 400 square feet, they are built to rigorous ANSI A119.5 safety and construction standards, not the federal HUD code that governs manufactured housing. This distinction is key to their function and placement.

Despite their compact size, modern park models are engineered for comfort and long-term placement. Featuring high-quality finishes, efficient layouts, full-sized appliances, and residential-style aesthetics like inviting porches and private patios, they feel more like a stylish cottage or a high-end tiny home than a temporary vehicle. This focus on design and quality aims to overcome the stigma sometimes associated with factory-built housing, presenting a product that appeals to discerning buyers seeking a simplified, 'right-sized' lifestyle without sacrificing modern comforts.

The smaller footprint also translates into tangible benefits for residents, including lower utility bills and reduced maintenance demands—factors that contribute to long-term affordability beyond the initial purchase price.

The Land-Lease Equation: Access vs. Equity

The financial engine making Pinevale's price point possible is its land-lease framework. Homebuyers purchase the physical structure and then pay a predictable monthly fee to lease the lot it sits on. This model carries a compelling set of advantages, chief among them the dramatically lower upfront investment. By removing the land—often the most expensive component of a real estate transaction—from the purchase equation, the path to ownership becomes vastly more accessible.

"Our region needs new answers to today's affordability challenges," said Doug Motley, Managing Principal at JLAM, in the company's announcement. "Pinevale does exactly that. By pairing modern park model homes with a land-lease framework, we're able to deliver an elevated community at an accessible price point. It's a practical, high-quality solution rooted in the way real estate has always best served families."

However, this model requires careful consideration from prospective buyers. The primary trade-off is in equity accumulation. While homeowners build equity in the physical home, they do not benefit from the appreciation of the land itself, which can be a significant driver of wealth in traditional homeownership. Furthermore, residents are subject to the terms of the lease agreement, which will include provisions for rent increases over time. The long-term stability and financial viability for a homeowner hinge on the fairness and predictability of these lease terms.

A Lifestyle-Centered Community

Beyond the innovative housing model, JLAM is positioning Pinevale as a lifestyle-centric community built around connection and convenience. The development plan includes a central clubhouse, a resort-style pool, walking paths, shared green spaces, and pet-friendly areas. This emphasis on shared amenities fosters a close-knit neighborhood feel and provides social infrastructure that is often absent in conventional suburban developments.

Located just minutes from Route 1, the community offers quick access to the employment centers and amenities of Milford, Lewes, and Rehoboth Beach, while being nestled in a peaceful, wooded setting. This combination of convenience and tranquility is designed to appeal to a broad demographic, from retirees downsizing for their next chapter to young families seeking a supportive environment to put down roots.

This project aligns with JLAM's broader strategy of identifying and investing in overlooked market segments. With a history of deploying over $500 million in capital across the Mid-Atlantic and Southeast, the firm has a track record of developing a wide range of residential and commercial properties, including other innovative communities like the Lightkeeper's Village cottage project in Lewes. Pinevale is not merely a one-off experiment but a calculated move by an experienced developer betting on the future of attainable housing. As site preparation begins in 2025, the broader real estate industry will be watching closely to see if this bold experiment in attainable living can deliver on its promise and provide a scalable blueprint for the future.