The Rise in Value for Mobile-Homes
Mobile, modular, or manufactured homes, call them what you will but this half a century old way of living is testing the market and competing against traditional homes. Find out how and why mobile homes make for strong investment opportunities.
Increase in Value
There is a long withstanding assumption of mobile homes that they don’t increase in value or they rise at a slower rate than traditional homes. But recent findings suggest mobile homes are steadily rising in value, maybe even more than traditional homes, and that this increase could have significant implications for affordable housing in America. According to Urban Institute, located in Washington, D.C., they discovered valuable information released by the Federal Housing Finance Agency. In the report, it states the home price index for manufactured homes (mobile homes) averages out an annual growth rate of 3.4%, as opposed to 3.8% for traditional homes.
This shows that mobile homes are not that far behind.
Trending by State
Of course, some critics may argue about the part of the data they cannot see, like where mobile homes are the most popular, or trending by state. Yes, manufactured homes are more popular in parts of the nation where the overall housing market is in crisis or less robust. But a great example like in the state of California, 18% of the nation’s housing market is represented, and of that percentage, 4% are manufactured homes. Again, mobile homes are not that far behind.
Additionally, in Alabama, Florida, Louisiana, North Carolina, and Texas they represent 41% of the manufactured housing market. More than a third of the nation’s housing market is comprised of mobile homes.
With that said, it’s a strong indication that mobile homes are a worthwhile investment opportunity. “Although there are limits to what the data can tell us, the index suggests a need to reevaluate the presumption that manufactured homes do not appreciate at the same rate as site-built homes,” the Urban Institute researchers wrote.
To learn more about mobile, modular, or manufactured homes, please visit Townsend Home Sales or call us today!