New Report: Manufactured Home Ownership Is A Strong Investment | White Knight

New Report: Manufactured Home Ownership Is A Strong Investment

By Wil Ferguson Posted In Community News

A manufactured home is a poor investment because they depreciate. Right? — Wrong!   That lingering myth and the lack of quality affordable site-built housing across the country has prevented many from realizing the American dream of quality homeownership. Many potential home buyers never consider manufactured homes for purchase because of the preconceived notion that these homes are like automobiles: “They depreciate.” That characterization has not been accurate since the inception of manufactured homes as they’re known today, yet the myth is still prevalent with those that have not explored the realities of manufactured home ownership.

The view that manufactured homes do not appreciate as much as site-built homes has been debunked by new evidence confirming that today’s modern manufactured homes do indeed appreciate almost as quickly as site-built homes.  A new report from the Urban Institutea Washington, DC.- based think tank, examined data released in August by the Federal Housing Agency. The home price index for manufactured homes featured an average appreciation growth rate of 3.4%, versus 3.8% for traditional, site-built homes.

In recent years, home prices have actually risen at a faster clip for manufactured homes than they have for site-built homes!

The statistical study included only homes placed upon and attached to real property with loans guaranteed by Fannie Mae and Freddie Mac, but still revealing. It is not clear if the report’s findings apply also to homes purchased with chattel (home only) loans as well. Nevertheless, it’s a strong indication that manufactured homes may be a worthwhile investment.

“Although there are limits to what the data can tell us, the index suggests a need to reevaluate the presumption that manufactured homes do not appreciate at the same rate as site-built homes,” the Urban Institute researchers wrote.


The return on your manufactured home investment is determined by the same factors as a traditional site-built home, however, location is probably the most influencing consideration in determining the amount of return on that investment. The manufactured home appreciation trend is not always easy to see, because manufactured housing is more popular in parts of the country where the overall recovery from the housing crisis has been less robust. For instance, appreciation in California has been 9.43 percent compared with a national average 0f 5.87 percent.

In comparison, the top five manufactured home states –Alabama, Florida, Louisiana, North Carolina, and Texas–which have accounted for 41 percent of the manufactured home manufactured housing market since 2011, have average price appreciation below the national level, according to the FHFA indexes.

The recent data suggests that long-held beliefs that manufactured homes don’t increase in value is a falsehood –and that could have major implications in the push for increased affordable housing nationwide. With this in mind, shopping for a new manufactured home proves to be a great option for housing that will last a lifetime. Talking with manufactured home retailers, working with manufactured home builders, and taking in the manufactured home news of the day will ensure that you get the most out of manufactured home ownership!