Developers of the site in Roos went to appeal after councillors refused plans for 14 two and three-bedroomed caravans last June.
The field, off Beechwood Views, already had outline planning permission for 11 houses, but the plans attracted a 200-signature petition and 61 letters of objection, with some arguing park homes would attract second home buyers, and not the young families needed to support the local primary school.
One said: “The village needs young families to help it grow, not old people in caravans that will only add to the problems of getting an appointment at the doctor’s surgery.”
However there were also 25 letters of support from traders and residents saying it would help support struggling local businesses.
Tim Rix, the chief executive of JR Rix and Sons, the parent company of Victory Leisure Homes, which employs 171 people making holiday homes at Gilberdyke, also wrote in support saying it would help the council meet affordable housing targets "quickly where house builders do not have the appetite to develop".
He pointed out that although East Yorkshire was the UK’s leading area for manufacturing caravans, there were no approved residential park home sites.
In her ruling Inspector Diane Cragg attributed “great weight to the provision of housing on a small site in an accessible location”.
She said the scheme "would provide additional dwellings within Roos on a site where the development plan seeks to direct development".
The park homes would be "limited to full time occupation with holiday occupation precluded".
Around 250,000 people live in residential park homes, according to Government figures.
Their supporters say they provide high quality homes similar to bungalows but are not as expensive.