Over the course of the last year, the manufactured
housing industry has made immense leaps and bounds in comparison to the last
decade. The rising prices of homes and falling prices of mobile homes combined
with retiring rates, unemployment rates and the minimum wage continue to spell
out the positives of affordable housing, especially in these times.
Last July, Congress passed the Housing Opportunity
Through Modernization Act (HOTMA), which allowed Section 8 vouchers to be used
for the purchase of a manufactured home (as opposed to only being able to pay
rent with the vouchers, tenants may purchase a mobile home through a lease with
section 8 vouchers). This, although one of the biggest, is only one notion to
why one would choose a manufactured home as the way to go.
1. Manufactured
Homes are Sold at a Great Value in Proportion to the Average House
The average cost of a new home sold in the U.S. is ~$325,000
today. Compared to the average cost of a new
mobile home – $64,000 – that’s approximately 508% the cost! Now, more
mobile homes are bought used than new (same with standard homes). Taking that
into account, the median cost of a mobile home is $10,000 while the median
sales price for homes in the U.S. is $200,000 – exactly 20 times the cost of a used mobile home.
Since 2007, more than 50%
of jobs are minimum wage jobs. Because of this, and the fact that ~10,000 Baby
Boomers are retiring each day into an average social security income of $14,400
per year, it could be predicted the manufactured housing industry could see a
huge spike in the coming months/years.
A note to make: both new
& used mobile homes are cheaper than an American automobile.
2. Mobile
Home Parks are Comparable to Gated Communities and are Much Cheaper
Time magazine wrote an
article last month titled The Home of the
Future outlining some benefits to manufactured homes. One of the observations
the writer made was the similarities between mobile home parks and expensive
gated communities; generally, the quality of life is the same, but rent is immensely
cheaper in a park than a complex. And although it’s not necessarily common to
have actual gates out front, most do share some unique features. For instance, communities
(both parks and complexes) can be thought of as a small city inside another
city. There are typically a few rules that help raise standards for the
community that the residents must live by. This delivers a high-quality life to
the inhabitants that they cannot find anywhere else.
3. Mobile
Homes are Geared Towards the Elderly
With approximately 10,000
people retiring every day, it’s starting to become a trend for Baby Boomers to
sell their expensive home, buy and move-in to a mobile home and live off the
difference as a retirement fund. Being only one-story, it’s very convenient for
those aging who find difficulty with negotiating room with stairs.
Additionally, the smaller size of the trailer results to lower utility costs,
which can’t hurt when there is only $14,400 coming in every year. One last huge
positive of manufactured housing communities is the tight-knit closeness of the
residents; it feels and acts as a giant support network!
It’s no secret: affordable housing is a rising problem
in America and mobile homes seem to offer a solution.
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