Mobile home prices are rising faster than single-family home prices. Here’s where they’re the most, least expensive

FeaturedHome BuyingHomesMoney

Written by:

Though home prices have come down in some areas, they remain steep across the U.S.

In the face of such expensive real estate, many would-be buyers may consider more affordable options like manufactured, or mobile, homes. But just because mobile homes are typically less expensive than more traditional site-built, single-family housing, it doesn’t mean they’re cheap.

On the contrary, our newest analysis of U.S. Department of Housing and Urban Development (HUD) and U.S. Census Bureau data finds that the average sales price of new mobile homes in the U.S. easily tops six figures. In addition, our analysis finds that the sales price of new mobile homes rose faster than the sales price of new single-family homes between 2017 and 2022.

  • The average sales price of new mobile homes sold in the U.S. rose by 77.1% between 2017 and 2022. In contrast, the average sales price of new site-built, single-family homes (excluding land) rose by 46.7% over the same period.
  • New mobile homes sold in the U.S. cost $127,300, on average. Though this is a significant amount of money, mobile homes are considerably cheaper than their site-built, single-family counterparts. As of 2022, the average sales price of new single-family homes (excluding land) was $430,808 — $303,508 more than that of new mobile homes.
  • New mobile homes sell for the most money, on average, in Idaho, Montana and Arizona. The average sales price of new mobile homes in these states is $168,500, $160,600 and $160,500, respectively.
  • New mobile homes sell for the least in Kansas, Ohio and Nebraska. In these states, new mobile homes sell for an average of $100,800, $101,200 and $101,900, respectively.
  • Mobile home prices have increased the most in Wyoming, Illinois, Kentucky and Mississippi. Though mobile homes in these states aren’t as expensive as in others, prices have grown dramatically in recent years. In these states, the average sales price of new mobile homes jumped by 127.6%, 110.1%, 107.3% and 103.7%, respectively, between 2017 and 2022. These are the only states where prices more than doubled in this period.
  • The average sales price of new mobile homes fell in only one state, Massachusetts, between 2017 and 2022. Prices fell by 5.0% in the Bay State. But that doesn’t mean buying a mobile home in Massachusetts is cheap — the average sales price of new mobile homes there is still among the highest in the nation, at $138,500.

No. 1: Idaho

  • Average sales price of new mobile homes in 2022: $168,500
  • Average sales price of new mobile homes in 2017: $92,300
  • Change in average sales price of new mobile homes between 2017 and 2022: 82.6%

No. 2: Montana

  • Average sales price of new mobile homes in 2022: $160,600
  • Average sales price of new mobile homes in 2017: $92,300
  • Change in average sales price of new mobile homes between 2017 and 2022: 74.0%

No. 3: Arizona

  • Average sales price of new mobile homes in 2022: $160,500
  • Average sales price of new mobile homes in 2017: $89,100
  • Change in average sales price of new mobile homes between 2017 and 2022: 80.1%

No. 1: Kansas

  • Average sales price of new mobile homes in 2022: $100,800
  • Average sales price of new mobile homes in 2017: $63,600
  • Change in average sales price of new mobile homes between 2017 and 2022: 58.5%

No. 2: Ohio

  • Average sales price of new mobile homes in 2022: $101,200
  • Average sales price of new mobile homes in 2017: $62,500
  • Change in average sales price of new mobile homes between 2017 and 2022: 61.9%

No. 3: Nebraska

  • Average sales price of new mobile homes in 2022: $101,900
  • Average sales price of new mobile homes in 2017: $71,600
  • Change in average sales price of new mobile homes between 2017 and 2022: 42.3%

Though the relatively low cost of a mobile home can make one appealing, buying and owning one isn’t without drawbacks.

While the average sales price of new mobile homes has risen over time, some current owners may find that reselling existing units can be difficult, especially if they don’t own the land their home is placed on. Further, securing a loan for a mobile home can be challenging and costly for borrowers with poor credit scores or those trying to buy one on land they don’t own.

These drawbacks — in addition to other downsides, like needing to pay trailer park or land access fees — may be enough to discourage some buyers from considering a mobile home, even if they find the price appealing.

That said, a mobile home could be a good investment depending on who’s buying the property and their needs. Moreover, broader acceptance of mobile homes could help reduce some of the housing affordability challenges that plague many of the nation’s homebuyers. As long as a buyer understands what they’re getting before they buy, a mobile home can provide a good blend of affordability, convenience, safety and shelter.

There are many ways to make finding an affordable home — mobile or not — easier. Here are three tips:

  • Shop around for a mortgage lender before determining what kind of home you can afford. Though mortgage rates are steep now, you can still potentially get a lower rate by shopping around for a mortgage lender before buying. Different lenders can offer different rates to the same borrowers. By getting a lower rate on a mortgage, you may find that a traditional single-family home is more affordable than expected.
  • Think about renting instead of buying. While there are exceptions, renting a home is usually much less expensive than buying one. If you’re looking for a home but don’t have the cash or the finances to get approved for a loan, renting can still be a great option.
  • Separate fact from fiction. A would-be mobile home buyer might worry that manufactured housing is typically poorly made, and that living in a trailer park is unsafe. Fortunately, preconceptions like these are often untrue. In fact, mobile home communities are often relatively safe compared to other neighborhoods, and government agencies like HUD enforce strict safety standards for mobile homes. By learning more about alternative housing options (like mobile homes), you might find they’re more appealing and a better fit for you than another, more expensive type of housing.

Data in this study comes from the U.S. Department of Housing and Urban Development (HUD) and U.S. Census Bureau Manufactured Housing Survey (MHS) and Survey of Construction (SOC). These surveys provide average sales prices for new manufactured homes and single-family homes sold in the U.S.

Alaska, Hawaii and Rhode Island were excluded from this analysis due to a lack of data.

Per the U.S. Census Bureau, a manufactured home (also known as a mobile home) is defined as “a movable dwelling, 8 feet or more wide and 40 feet or more long, designed to be towed on its own chassis, with transportation gear integral to the unit when it leaves the factory, and without need of a permanent foundation. These homes are built in accordance with the HUD building code.” These homes are completely constructed in a factory.

While mobile homes may be considered “single-family” homes in some circumstances, single-family housing unit data referenced in this study specifically refers to site-built, single-family housing units. Unlike manufactured homes, these houses are built almost entirely on the site on which they’ll remain, even if they may include some factory-made components.

Source

This article originally appeared on LendingTree and was syndicated by MediaFeed.

More from MediaFeed:

Like MediaFeed’s content? Be sure to follow us.

AlertMe

This article originally appeared on LendingTree and was syndicated by MediaFeed.

Like MediaFeed's content? Be sure to follow us.