Are manufactured homes or mobile homes worth the investment? There is a lot of debate about what is better, buying a home on your own property or buying a manufactured home or mobile home in a park. Of course, being that Lakeshore Estates in a mobile home park in Lakeport, we will be a bit biased, but it is worth exploring our side of what we see as a good investment for the right buyer.
Some real estate experts suggest that manufactured homes are a great solution for many owners of homes and that mobile home communities are more friendly than those of brick, block, and frame. Many families actually prefer a mobile home park because they are around other families and develop a deeper sense of community. Buying a home can be an emotional decision, so there are many considerations when living in a mobile home park–some that only those that have lived in a mobile home park can understand.
If you have never lived in a mobile home park but considering it, you may find the article below interesting where we discuss some of the common myths about mobile homes. Let’s look at each one of these and see what the research shows.
Myth #1: Mobile homes do not appreciate.
Datacomp Appraisal Systems recently completed a study that looked at 185 manufactured homes in Michigan and compared the manufactured home sale prices of new and used homes. The study found the average value of the home had increased by $190, from $26,422 new to $26,612 used. In summary, 97 of the new manufactured homes increased in value by an average of $2,985. They also found that some did decrease too, but they concluded that there are typically specific reasons for why some manufactured homes depreciate–which is actually the same reason a new stick-built home can depreciate. These reasons include such factors as the overall housing market of the area the mobile home is located, the community or neighborhood, the original price of the home, the age, inflation rates, housing demand, etc. They concluded that the appreciation in value of a manufactured home comes back to the old real estate axiom — location, site maintained, house repairs, etc. The bottom line is that manufactured homes can and will appreciate or depreciate at the same rate as any other home (mobile home or stick built) in the surrounding neighborhood.
Myth #2: Mobile homes are not made as well as stick built homes.
Studies have been done comparing the construction of a modern manufactured home against a site built home. The manufactured home had less issues! Let’s look at why. In 1976, the HUD code was created which heavily regulates how homes are built and inspected. Those regulations are continually updated and improved to protect the customer. Many companies go above and beyond the minimum requirements of the HUD code. In fact, the HUD code is so thorough, they are now being looked at from stick-built construction companies for ideas on construction! Today, manufactured homes have also made huge strides in construction quality, technological advances, and styles. Technological advances are allowing manufactured home builders to offer a much wider variety of architectural and exterior finishes that will suit most any buyer’s dreams, all the while allowing the home to blend in seamlessly into almost any neighborhood. At the same time, greater flexibility in the construction process allows for each home to be customized to meet a buyer’s lifestyle and needs. Interior features now include such features as 8-10 foot flat ceilings to state-of-the-art kitchens and baths, giving the home buyer all the features found in traditional, site-built homes. Enhanced energy efficiency in manufactured homes, achieved with upgraded levels of insulation and more efficient heating and cooling systems, provide another source of savings for homeowners, especially in this era of rising energy costs.
The problem with stick built today is that the industry is changing so dramatically, that more and more consumers are looking to manufactured homes. For example, there is a decline in the number of skilled tradespeople, difficulties with maintaining construction quality, more complex regulations that control on-site construction, and the need to construct homes at a competitive price. This is particularly the case with affordable housing, where small changes in price have a huge impact on the financial viability of a project. It is increasingly difficult for the affordable home builder to deliver a quality product with these mounting issues!
While construction companies battle these challenges, the manufactured housing industry can reap the benefits of its hard work that started back in 1976. Manufactured Homes tend to have a more stringent INSPECTION and ENFORCEMENT process than stick built homes do. The manufactured home enforcement program required by the HUD is a thorough and efficient system designed specifically for the factory production environment. Uniformity and consistency can be maintained better in the HUD enforcement system because of two key factors. First, the inspections take place in the factory, during each phase of construction, and follow the manufacturer’s own in-plant inspection and quality assurance teams. This allows for more thoroughness since time is spent inspecting homes rather than traveling to inspection sites. Efficiency is increased because travel time is limited and necessary paperwork is minimized. Second, consistency is maintained because fewer people inspect more homes. The enforcement procedure is much less susceptible to individual interpretations, as would be the case with on-site inspections in every jurisdiction across the country. Because of these reasons, the quality of construction on manufactured homes has significantly improved. In fact, obtaining permits from your local building department becomes a breeze. As a HUD approved home, the entire plan approval process is bypassed because a manufactured home has already been approved by a Federal Agency which supersedes any local jurisdiction.
The federal standards regulate manufactured housing design and construction, strength and durability, transportability, fire resistance, energy efficiency, and quality. The HUD Code also sets performance standards for the heating, plumbing, air conditioning, thermal and electrical systems. It is the only federally-regulated national building code.
When anyone looks at all these details, they can easily see why it is impossible to compete with the quality of today’s manufactured home compared to a stick built home. That being said, just be careful of what type of mobile home you buy. There is low-end, affordable housing that even the manufactures would tell you they are not made the best, but they are made to put a roof over a head at a much lower cost for a family. And then there are high-end homes that are the same floor sizes made with higher quality materials. So there are Dodge Neons and there are Lexus and Cadillacs and everything in between. There are many dealers and manufacturers out there, so make sure that you are well informed and trust who you are buying from.
At Lakeshore Estates Mobilehome park, we have open lots available for your dream home. Just send us an email in our contact form and let us know what you are interested in. We can also help you work with local dealers to get your ideal floor plan, style, and features. Lakeport is a growing area and a perfect place for your dream home, so let us know how we can help you move into our park.
Myth #3: Manufactured homes are less energy efficient than site-built homes.
Energy efficiency of mobile homes built 30 years was not very good. However, today the energy efficiency in site-built homes versus that of a manufactured or mobile home has drastically changed. When HUD was created, the efficiency of the homes were controlled in every aspect. There are barely any controls over a site built home. Following is from The Manufactured Housing Association of Oklahoma:
On October 24, 1994 a new minimum energy conversation standard became effective. The new energy standards are resulting in lower monthly energy bills, a factor industry officials say will enhance the affordability of manufactured housing and, perhaps, improve mortgage underwriting terms. Improved home ventilation standards have also been adopted in conjunction with the energy standards, a step that will improve indoor air quality and condensation control in manufactured homes. The new standards rely on computer modeling to identify the optimum cost-effective conservation level for a home located in any one of three regions in the nation. In developing the standards, the U.S. Department of Housing and Urban Development followed Congress mandate to establish standards that “minimize the sum of construction and operating costs” over the life of the home. This emphasis on “life cycle” energy costs is unique among national energy standards.
HUD’s new standards require that manufactured homes comply with one of three alternative options: design the home’s overall thermal efficiency to account for heat loss through the insulated surfaces of the thermal envelope (better known as Uo-values); adjust Uo values with credits for high efficiency heating and cooling equipment; or by totally redesigning the home with new innovative technologies that use no more energy than published Uo values. These efforts are ensuring that manufactured homes remain affordable, not only in start-up costs, but for the life of the home.
There are many differences between manufactured (mobile) homes built before the HUD Code took effect in 1976 and those built afterward. Many manufactured homes made before 1976 are likely to have air leakage through walls, no insulation, no vapor retarder in the roof cavity, uninsulated heating system ducts, and uninsulated doors. If you have a home with any of these issues,
we recommend to make the following energy efficiency improvements to reduce heat loss:
- Install energy-efficient windows and doors
- Add insulation on the bottom
- Make general repairs (caulking, ducts, etc.)
- Add insulation to your walls
- Install insulated skirting
- Install a belly wrap
- Add insulation to your roof or install a roof cap
We hope these myths helped you better understand the manufactured home industry and why you may consider a mobile home over a traditional stick built, especially if you are interested in investing in a new mobile home at Lakeshore Estates Park.
