Manufactured Homes Appreciating at Rates Equal to Site-Built Homes
For many years there has been a common belief that one of the downsides to manufactured home ownership is that these factory- built homes do not appreciate in value.
A recent analysis of Federal Housing Financing Agency (FHFA) data by the Urban Institute dispels the myth that manufactured homes do not appreciate in value as much as site-built homes. In fact, since 2,000, manufactured housing prices have appreciated similarly to traditional housing prices.
The report, which includes government-sponsored enterprise (GSE) mortgage data for manufactured homes reveals that between 2000 and 2024, manufactured homes appreciated at nearly identical rates to site-built homes, growing approximately 5% annually. Over this period, site-built homes appreciated 212.6%, while manufactured homes followed closely at 211.8%. This data underscores the financial viability of manufactured housing, which has historically faced negative perceptions and restrictive zoning laws.
The FHA’s methodology focuses on the repeat sale approach, analyzing price changes across multiple transactions. While the study excluded refinancing data due to lower refinancing activity in manufactured housing, it relied on purchasing indexes to provide a market-reflective valuation. Year-over-year price index data further highlighted that since 2014, manufactured homes have consistently appreciated at higher rates than site-built homes in all but two quarters. Since 2000, manufactured housing prices have appreciated similarly to traditional housing prices,
Manufactured housing presents a viable solution to the nation’s affordable housing crisis. The analysis highlights how outdated zoning laws and negative stereotypes continue to hinder the potential of manufactured homes as an affordable option. Legislative changes in states like California, Maine, and Maryland, which now permit manufactured housing in single-family zones, offers a blueprint for expanding affordable housing options. Similarly, increased federal participation in the manufactured housing market could unlock new opportunities for affordable, sustainable housing nationwide.
Note: A little known fact is that since 2012 manufactured homes have appreciated faster than site-built homes!
