A new report from LendingTree indicates that the pricing of mobile homes is jumping faster than pricing of single-family homes.
Mobile Homes – The Hottest Price Accelerator
Prices for mobile homes have seen more rapid growth in recent years than prices for single-family homes, according to a recent report from LendingTree.
Between the years of 2014 to 2019, the median mobile home value increased +39% while the median value of a single-family home increased +33%. Though the median value of a mobile home in the US is approximately $53,300 compared to the median value of a single-family home at approximately $270,000, a mobile home may be a good option for cost-conscious buyers.
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Jacob Channel, LendingTree’s Senior Economist, said “Though there may be a stigma associated with them, mobile homes can be a beneficial housing alternative…especially to lower income borrowers in today’s hot housing market.”
(The US Census Bureau defines a mobile home as “a movable dwelling, 8 feet or more side and 40 feet or more long, designed to be towed on its own chassis, with transportation gear integral to the unit when it leaves the factory, and without need of a permanent foundation.”)
Priciest Mobile Home Markets
According to LendingTree, Washington state is the most expensive mobile home location in the country. The median mobile home now stands at $125,400 value. For comparison, the median value of a single-family home in the state of Washington currently stands at $387,600. (Incidentally, Washington is the only state in the US where the median mobile home value tops $100,000.)
Oregon and California are the second and third priciest markets for mobile homes. The median mobile home value in Oregon stands at $93,500 and in California, the median mobile home value stands at $91,400.
Top 10 States Where Mobile Homes Priciest:
- New Mexico
- New Hampshire
- Rhode Island
- North Carolina
Median 5-Year Mobile Home Value Appreciation Increases & Decreases from 2014-2019
LendingTree indicated that across the five years analyzed for mobile home valuations, the median value of mobile homes increased the most in Nevada, Oregon and California by an average of +96% across the three states. The average appreciation of median values of single-family homes across 2014-2019 in these same three states was +50%.
Delaware and Kansas, outliers to the national trend, saw mobile home values drop between 2014 and 2019. In Delaware, the median mobile home value fell -11% while the median single-family home value increased +14%. In Kansas, the median mobile home value dropped -7% while the median single-family home value jumped +24%.
Mobile Homes Considered to Be “Tricky” Investments
LendingTree’s Chief Economist Channel said, “Securing a loan for a mobile home can be challenging, as many lenders view them as riskier investments than a loan for another type of house. It can be especially tricky and costly for borrowers with poor credit scores or those trying to buy a mobile home on land they don’t own.”
Also, there may be additional expenses such as trailer park or land access fees associated with mobile homes. Another consideration with mobile homes is that some owners may find them difficult to resell. All that said, however, buying a mobile home may be a great alternative for buyers who have been priced out of the highly competitive single-family home market.
Thanks to LendingTree and Inman.