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As traditional home prices remain elevated, many prospective buyers are turning to manufactured or mobile homes as a more affordable option. However, a recent Lending Tree analysis reveals that these alternatives aren’t saving potential homebuyers as much as they used to.
The analysis found that the price of mobile homes has surged by approximately 58 percent between 2018 and 2023, outpacing the 37.66 percent growth in traditional single-family home prices during the same period.
Despite this sharp increase, mobile homes remain significantly cheaper than constructed homes, with an average price of $124,300 compared to $409,872 for traditional homes.
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While the lower price tag is revealing, prospective buyers should consider the potential drawbacks of mobile homeownership.
In its analysis, Lending Tree Senior Economist Jacob Channel points out that “current owners may find that reselling existing units can be difficult, especially if they don’t own the land on which their home is placed.”
Additionally, securing financing for mobile homes can be difficult, particularly for those with poor credit or those purchasing homes on land they don’t own. Additional expenses, including trailer park or land access fees, can also deter potential buyers.
On the other hand, mobile homes still “provide a good blend of affordability, convenience, safety and shelter if buyers understand what they’re getting,” Channel noted.
Before purchasing either a mobile or traditional home, potential buyers should cross several things of their checklists: compare the costs of renting versus buying in their market, shop around for mortgage lenders before creating a budget, and thoroughly research the market to determine the facts about resale and other considerations.
Location is another crucial factor in determining affordability since mobile home prices vary across the country.
In 2023, mobile homes were most expensive in Washington ($164,100), California ($154,500) and Arizona ($148,800). During the same year, they were most affordable in Indiana ($103,000), Wyoming ($106,600) and Ohio ($106,900).
