Are you looking for a real estate investment with minimal upfront costs? Mobile home investing may be the right real estate strategy for you. Recent news shows that mobile home values are rising almost as fast as single-family homes. Learn why the value of mobile homes is increasing so quickly and what you can do with this information.
- Mobile home values have increased by 34.6% from 2016-2021, compared to 35.4% for single-family homes.
- In some markets, the value of mobile homes has exceeded the value of single-family homes.
- The competitive real estate market for single-family homes has encouraged buyers to consider housing alternatives, like mobile homes.
- Some mobile home markets, like Nebraska and Iowa, have increased faster than others.
- Mobile homes tend to have fewer rules and requirements, making them a housing option that’s more spacious and private.
- Mobile home investments are still one of the best-kept secrets in real estate investing, making it a good time to add it to your real estate portfolio.
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How Much Have Mobile Home Values Increased?
The last few years in the real estate market have been highly competitive. Real estate of all types has significantly increased in value, and mobile homes are no exception. Data from the U.S. Census shows that the median value of mobile homes increased by 34.6% from 2016 to 2021. The median value of single-family homes increased by 35.4% between the same years.
In some markets, the increase in the value of mobile homes has surpassed that of single-family homes. The National Association of Realtors (NAR) says that the median value of mobile homes increased more than the median value of single-family homes in 27 states. Some of these states include Nebraska, Iowa, Ohio, and Kansas.
Why Are Mobile Home Values Rising?
While the value of single-family homes continues to hold steady despite a recent slowdown in the real estate market, manufactured homes are still catching up. There are a few reasons why the value of mobile homes is increasing so quickly.
Low Single-Family Home Inventory
The single-family home inventory has been low for the last few years. This has led to home buyers considering housing alternatives, like mobile homes. As the demand for mobile homes increases, so does the value. Even as single-family home prices are leveling out, higher interest rates are preventing buyers from entering the market.
The housing market has been extremely competitive for buyers in all price ranges. Even buyers who are willing to offer full price may lose out on a property. This competitive market has led to buyers considering other less-competitive housing options, like mobile homes.
The highly competitive real estate market is also encouraging buyers to purchase properties without inspection. Buying lower-cost residences, like mobile homes, is usually less risky, as the repair and maintenance costs are more affordable.
Alternative to Apartment Living
Mobile homes offer a nice balance between affordability and privacy. Families and renters ready to move out of an apartment may find the housing market too competitive or expensive, making mobile homes a nice alternative. Mobile homes often come with flexible pricing and minimal requirements yet offer renters more space and privacy than an apartment does.
Lower Maintenance Costs
The lower maintenance costs of mobile homes have also made them a more appealing option for some homeowners or renters. When comparing a mobile home vs. a single-family home, mobile homes are typically smaller, bringing down the cost of upkeep. A mobile home is also built in a factory and then transported to the lot, meaning there are fewer separate parts to repair, also bringing down the cost.
Fewer Mobile Home Sales
Another factor driving up the value of mobile homes is the limited inventory. Existing owners aren’t able to sell, despite an increase in their value. Selling their mobile homes would mean they’d have to enter the competitive and expensive real estate market. Whereas many tenants may use the affordability of mobile homes as a stepping stone to purchasing a home, they’re not yet able to make that step.
Fewer Rules and Regulations
Some renters may also choose to live in a mobile home park to avoid rules and regulations that may be a part of apartment living. Apartments often have strict rules on things like the number of pets residents may own. Apartment living also doesn’t allow renters to paint or make cosmetic changes to the rental unit. Depending on the mobile home agreement, renters may have more flexibility in these areas.
Mobile Home Locations With the Highest Increase in Value
Some states noticed an even higher increase in mobile home values, including:
These are also places in the country where the value of single-family homes has increased significantly. California has one of the most expensive real estate markets in the United States, making mobile homes a more affordable option. It’s also important to note that as the cost of single-family homes increases, so do rental prices. This means investing in real estate can earn you more in monthly income.
What Can You Do With This Information?
Mobile home values are rapidly increasing, but why is this information important to you? Mobile home investing is still one of the best-kept secrets of real estate investing. The value of mobile homes is continuing to increase, showing that there’s just as much demand for them as for single-family homes.
Investing in mobile homes offers many benefits, including minimal upfront costs, low maintenance costs, and high demand. The goal of real estate investing is to earn revenue, and as the demand for mobile home living continues to increase, you’re likely to notice even more success. Taking a step toward investing in mobile homes now can also help you enter the market before other investors realize how lucrative it is.
Traditionally, mobile homes have been an affordable alternative to regular housing. In the last few years, the value of mobile homes has increased almost as quickly as single-family homes. This makes it a great real estate investment type to consider. Be sure to sign up for a free or paid membership with Infinity Investing to access resources and tips for creating wealth.