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Manufactured Modular Homes

Market studies have shown that manufactured modular homes are generally priced 35 to 50 percent under the price of a comparable traditional stick built home.  Because of this price difference, and because of past perceptions of a tin box on wheels, modular homes are typically viewed as an inferior housing option.  However, upon closer examination, it is easy to see that modular homes actually seem to be a superior product.

The first concern that consumers have about manufactured modular homes is that they are not built to the same standards as a traditional stick built home is.  To be truthful this assumption is correct.  However, this does not mean that manufactured homes are built to inferior building standards.  In fact, manufactured homes are built to much higher building standards then site built homes are.  This is because the manufactured home has to be built as both a vehicle and as a home.  To make sure that it is sturdy enough to withstand the challenges of both of these functions manufactured homes need to be fitted with a steel chassis under their wooden floor planks.  This provides a much sturdier foundation for the home and improves its ability to withstand normal wear and tear once it is set up.  In order to ensure the safety of the manufactured home while it is mobile and when it is set up, the United States Department of Housing and Urban Development developed and implemented as set of building standards for manufactured homes back in 1975.  This code was further enhanced and updated in 2000, making manufactured homes much safer and sturdier then most other housing options.

The second concern that consumers have about manufactured modular homes is that they depreciate in value instead of appreciate in value.  In the past this assumption was true, especially for pre-1975 mobile homes.  The cause of the depreciation was usually attributed to the poor quality of the mobile home’s construction, as well as to the fact that the home was not attached to a piece of real property.  Contemporary manufactured homes have been able to overcome these valuation problems by offering a higher quality home that is intended to be set up on a permanent foundation.  Studies have shown that if you select a manufactured home that is a high end product, and you secure it to a permanent foundation then your manufactured home and property will appreciate in value just like any other type of real estate.

Investing in any piece of real estate has some risk associated with it.  The real estate market could bottom out in your area, a natural disaster might devastate the area, or the economy may deflate.  However, while there are some risks involved, real estate is generally a safe investment to make.  If you want to maximize the amount of home that you get for your investment budget you may want to consider purchasing a manufactured home.  If you do select to buy a manufactured home make sure that you select a quality model and that you set it up on a permanent foundation. These two things will help protect your investment, and it will allow your investment to appreciate in value.

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