‘Mobile Home Values Rising Faster Than Single-Family’ House-Wow Fact$

Millions believe mobile and manufactured homes ‘depreciate’ – is that true or untrue? New and previous research reveals a surprising answer. It’s both. Factory-built or manufactured housing can and does increase in value. But there are situations that a manufactured home, as well as conventional housing, can decrease in value and those causes are similar. What follows is thus useful to all housing owners and those who desire to become a homeowner.

LendingTree research by senior economic analysist Jacob Channel indicates throughout much of the U.S., mobile and manufactured housing appreciation has been at a greater pace than conventional housing. Channel should have used the more precise terminology, but his points are still relevant. During a widely proclaimed affordable housing crisis, the findings are compelling because a new manufactured home may be roughly half the construction cost of single-family housing. Because of the federal construction and consumer safeguards built into the Manufactured Housing Improvement Act of 2000 (MHIA), those buying a HUD-regulated manufactured home enjoy similar or greater protection than the purchasers of more costly conventional housing.

It is not a given that a mobile or manufactured home will go up in value. For those who recall the housing and financial crisis of 2008, they know it isn't a given that conventional single-family housing, condos, or townhouses appreciate. There are economic, financial, maintenance, supply-demand, or other conditions that can cause any form of housing to either go up or down in value.

The good news is that experience and research from multiple sources reveal the causes of appreciation or depreciation. Several factors can be influenced by homeowners.

A report on Manufactured Home Living News (MHLivingNews.com) provides the facts and evidence for affordable housing consumers, media, public officials, and researchers should consider.

Channel’s LendingTree research included the following quoted toplines, which as noted are part of the broader report linked here. Additional study information on a state-by-state basis is also provided on MHLivingNews.

Key findings Per LendingTree (his terminology is errant, but this is what Channel said).

• Nationally, the median value of a mobile home is $53,300, nearly $190,000 less than the median value of a single-family home. Although they’re worth considerably less, the median value of mobile homes increased by 39% from 2014 to 2019, 6 percentage points more than the 33% increase in the median value of single-family homes in the same period.

• Mobile homes cost the least in Nebraska, Iowa and Ohio. Across these states, the median value of a mobile home is less than $25,000. To put that into perspective, the median value of a single-family home in these states is more than $150,000.

• Mobile homes cost the most in Washington, Oregon and California. Washington is the only state where the median value of a mobile home is higher than $100,000 ($125,400), though Oregon and California are also relatively pricey with median values of $93,500 and $91,400, respectively. Regardless, mobile homes in these states are still considerably less expensive than single-family homes.

• The difference in price between a mobile and single-family home is the largest in California, Massachusetts and Colorado. In these three states, median-priced mobile homes cost $477,100, $343,300 and $337,800 less than median-priced single-family homes. On the other end of the spectrum, the differences in median prices in Mississippi, Arkansas, West Virginia and Oklahoma are less than $90,000.

• The median value of mobile homes rose most significantly over the five years in Nevada, Oregon and California. In these states, median mobile home values increased by an average of 96% from 2014 to 2019. This increase is almost twice as much as the average appreciation of 50% seen in the median value of single-family homes in the same three states.

• Though the median value of mobile homes increased from 2014 to 2019 in nearly every state, it fell in Delaware and Kansas. Respectively, median mobile home values fell by 11% and 7% in each state, while single-family home values increased by 14% and 24%.

One of several eye-opening revelations could stun millions. Channel’s research, while the most up-to-date, isn’t ‘new.’ Several 21st century studies documented manufactured housing appreciation. That includes research cited by HUD, FHFA, the Urban Institute, other nonprofits, and universities. Several are cited and linked from the MHLivingNews article.

That begs questions.

Why did it take the Manufactured Housing Institute (MHI) about 2 years before they did a post on their own website featuring LendingTree’s favorable research? During an affordable housing crisis, isn’t it commonsense for MHI to make such facts widely known?

A controversial member of MHI – one accused by his residents of “predatory” behavior, Frank Rolfe – has previously ripped the trade group for failing to tell good news as well as missing the opportunities to properly address problematic reporting.

“Negative articles on the industry are met with “no comment” [by MHI],” said Rolfe. Positive news opportunities are met with “no comment.” I’ve never seen anything like it.”

More recently, Rolfe said that he blames MHI for the relatively low sales levels for manufactured housing. That said, in my professional view, MHI is only part of the problem, because public officials at the U.S. Department of Housing and Urban Development (HUD), and other state, local, and federal agencies should be enforcing existing laws that make manufactured homes more accessable.

Tim Williams, former MHI Chairman and the current president and CEO of Berkshire Hathaway owned 21st Mortgage Corporation said: “there are good arguments that we [MHI] should respond to every story, refute every [problematic] statistic, and make our case to the public.” That reasonable statement was made by Williams to MHProNews.

That same message from Williams announced MHI would hire a public relations professional. But years later, Rolfe’s comments appear to be as valid now as they were previously.

The Manufactured Housing Association for Regulatory Reform (MHARR) and two former MHI affiliates called for a new post-production trade group because of what Neal Haney called “a lack of effective representation at the national level [i.e: the Manufactured Housing Institute].”

MHARR and MHI have both said that the MHIA provides “enhanced preemption" for manufactured housing over local zoning. More insights on related controversies are explored and linked.

> Realtor-What Is a Manufactured Home? The Next Step Beyond Mobile Homes

> Realtor? Journalist? Affordable Manufactured Home Production Jumps

> Orlando RE Agent Smith-Younger Adults Will Need $8500 Monthly for Rent

> Blankley-Goodbye American Dream? Only 10% Polled Can Buy a House; But

> Waiting for Fed Rate Cut Before Buying a Home? Experts Say Think Twice

> Frank Rolfe-Special Interests ‘Don’t Want to Solve Affordable Housing'

> TARK-‘I’m a Teen and Know the Solution to Affordable Housing Crisis’

> Renting? Rent too High? Odds Are DOJ Suit vs RealPage Matters to You

> New-Certified “Half Price Homes” - Affordable Housing Solution Redux

> Solution: “Would-Be Homebuyers Need 80% More Income Than 4 Years Ago”

Prices have risen since the video posted below was produced, but the facts and insights are broadly as relevant today as they were then. Modern manufactured homes have been routinely been appreciating for years. They can be a good investment for first time homebuyers, for downsizers, for upsizers and others too. ##

L. A. “Tony” Kovach and his family live in a manufactured home on private property in Winter Haven, FL. He is the co-founder of ManufacturedHomeLivingNews.com and ManufacturedHomeProNews.com, trade publications serving segments of the manufactured home industry. Having worked in several segments of the manufactured home industry for over 3 decades, Kovach is a widely acknowledged and often praised expert on manufactured housing. ###