A Quality Affordable Manufactured Home is the Antidote for U.S. Housing Shortage and Prohibitive Price Points

In America we are in the throes of an unprecedented housing crisis characterized by a severe home shortage and prices that have risen to previously unimaginable heights, pricing most entry-level buyers out of homeownership – in the traditional sense.

The dearth of homes for sale has pushed median home list prices up 13% annually, to hit a record-high of $385,000 in June, according to Realtor.com data. These prices don’t factor in bidding wars and offers over asking, which can push prices much higher in many of the hotter real estate markets. Not even rock-bottom mortgage interest rates can make up for modest starter homes selling for what seems like luxury home prices.

While there is a severe housing shortage overall, the supply of starter homes has been slashed by more than half in the past five years, according to Realtor.com listing data. On-site construction of new single-family starter homes (under 1800 square feet of living space) is virtually non-existent driving up prices for a dwindling supply of entry-level homes. The need for quality, affordable housing has never been greater.

Manufactured housing continues to represent the best alternative for first-time homebuyers and is appealing to existing site-built homeowners, especially baby boomers, seniors, and empty nesters who are selling their existing traditional (site-built) home and utilizing windfall equity proceeds to purchase a new high quality manufactured home.

The following are a few of the advantages of becoming a manufactured homeowner vs. site-built.

MANUFACTURED HOME ADVANTAGES

• A new manufactured home is “everything a home should be,” with quality of construction, appearance, amenities, energy efficiency, and all other aspects of owning a home, equal and often superior to a comparably sized new site-built home.
• The cost of a new manufactured home is $57 per square foot with the cost of a comparable new site-built home at $119 per square foot.(U.S.Census Bureau). The nationwide average selling price of a new manufactured home is $81,900. (MHI 2021)
• Manufactured home supply and capacity is not subject to, nor has been adversely affected by conditions plaguing site-home builders, with 136 manufactured home plants producing homes in all U.S. geographical areas.
• Multiple manufactured home financing choices are available, whether a home is placed on private property or within a land-lease community. A manufactured home affixed to real estate will qualify for mortgage financing similar to a traditional site-built home, including FHA and VA. Because the total consideration is lower, the required down payment will be proportionately less.
• Manufactured home producers offer a wide selection of floor plan choices and customization flexibility to meet a homebuyer’s lifestyle wants and needs, including enhanced energy efficiency such as Energy Star-labeled manufactured/modular homes for substantial savings in many aspects of owning and operating a home, and choices of amenities, decor, fixtures, and appliances.

Technology advances, evolutionary designs, and a focus on delivering quality homes that families can afford are the driving forces within the manufactured housing industry. That’s why more people are turning to manufactured housing to deliver homes that homebuyers want and need, at prices they can afford.