The median listing price for a mobile home during February was $141,450, a 5.7% year-over-year decrease, according to a report from Realtor.com. In comparison, the median single-family home last month was $410,000.
Realtor.com noted that under current market conditions – a 6% interest rate on a 30-year mortgage with a 20% down payment – the monthly principal and interest for a median mobile home is $678. In comparison, the median rent across the top 50 metros is $1,667.
The report also found that values increased on mobile homes with land by 70.1% over the last seven years, outpacing the 58.6% appreciation of traditional single-family homes. For mobile homes without land, appreciation was 51.6%.
Admittedly, mobile home inventory is not evenly spread across the country. This housing sector is heavily concentrated in the Sun Belt, while roughly 10% of all mobile home listings are located outside of metropolitan areas.
“While the broader market remains a challenge for many, the mobile home sector is currently offering one of the most efficient entry-points into the market,” said Joel Berner, senior economist at Realtor.com. “Mobile homes offer a unique opportunity to build equity with a significantly lower monthly housing payment. For those who prioritize flexibility and lower cost burdens, the current price dip in the mobile home sector provides a compelling window to move from renting to owning.”
Berner added the pending Housing for the 21st Century Act would modernize standards by removing the permanent steel chassis requirement for manufactured homes, thus enabling more multi-story designs for these properties.
“We are seeing a shift in how manufactured housing is perceived and regulated,” said Berner. “With legislative reform on the horizon and expanded zoning in several states, these homes are being recognized for what they are: a great housing alternative that provides an efficient path to financial stability for millions of American households.”
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