Home prices might be coming down, but they’re still pretty steep in many areas. So it would be normal to wonder if other types of housing, such as mobile homes, are more affordable or even cheap. Unfortunately, per a new report by LendingTree, that is not the case. As home prices have dropped, mobile home prices have risen.
LendingTree’s latest analysis of U.S. Department of Housing & Urban Development (HUD) and U.S. Census Bureau data finds that the average sales price of a new mobile home in the U.S. easily tops $100,000. In addition, their analysis found that, between 2018 and 2023, sales prices of new mobile homes actually rose faster than those of new site-built, single-family homes.
The report used the U.S. Census Bureau’s definition of a mobile home (aka manufactured home) as “a movable dwelling, eight-feet or more wide 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. These homes are built in accordance with the HUD building code.”
Key Findings of the Report
- The average sales price of new mobile homes rose by 58.34% between 2018 and 2023 in the U.S, whereas the average sales price of new site-built, single-family homes, excluding land, rose by just 37.66%.
- The average cost of a new mobile home sold in the U.S. was $124,300; that’s $285,572 less than that a new single-family home ($409,872).
- The long-term mobile home price trend in the U.S. is upward, but the average sales price fell slightly (2.36%) from 2022 to 2023.
- The most expensive states in which to buy a new mobile home are Washington, California, and Arizona, at $164,100, $154,500, and $148,800, respectively.
- The states where you get the most bang for your mobile home buck are Indiana, Wyoming, and Ohio, at $103,000, $106,600, and $106,900, respectively.
- The largest percentage growth in mobile home prices has been in Kansas, Connecticut, and Georgia, growing by an astonishing 84.93%, 83.03%, and 79.05%, respectively.
Where Is It Most Expensive to Buy a Mobile Home?
- Washington: The average sales price of new mobile homes jumped 59.94% between 2018 and 2023 (from $102,600 to $164,100), planting the Evergreen State as the most expensive place to buy a manufactured home in the U.S.
- California: Prices increased 37.33% ($112,500 to $154,500).
- Arizona: Prices increased 52.62% (from $97,500 to $148,800).
States Where It Is Least Expensive to Buy a Mobile Home
- Indiana: The average sales price of new mobile homes skyrocketed 62.20% between 2018 and 2023 (from $63,500 to $103,000), but the Hoosier state is still the cheapest place in the nation to buy a home on wheels.
- Wyoming: Prices increased just 8.89% ($97,900 to $106,600).
- Ohio: Prices leapt 60.51% ($66,600 to $106, 900) in just five years.
The Pros and Cons of Buying a Mobile Home
A mobile home can be a sound investment, depending on who’s buying the property and their needs. Also, broader acceptance of mobile homes could help reduce the housing affordability challenges taxing many prospective homebuyers. Mobile homes are a good blend of affordability, convenience, safety, and shelter, but buyers should do their research and understand what they’re getting.
That said, ownership is not without its drawbacks. Reselling a mobile home can be difficult, especially if you don’t own the land on which it sits. And securing a loan to purchase the home can be challenging and costly for borrowers with poor credit scores or those trying to buy one on land they don’t own.
Three Tips for Finding an Affordable Home, Mobile or Not
- Shop for a mortgage lender before determining the kind of home you can afford. Mortgage rates are relatively steep now, but you might be able to get a lower rate by shopping around before buying. Different lenders can offer different rates to the same borrowers, and a lower rate could make a traditional single-family home more affordable than expected.
- How about renting? Renting a site-built home is many times much less expensive than buying one. If you don’t have the cash or finances to get a loan approved, renting can be a great option.
- Separate fact from fiction. There are numerous negative preconceptions about living in a mobile home—e.g., poorly made housing, unsafe trailer parks—that are often untrue. (For the record: mobile home communities are often relatively safe compared to other neighborhoods, and government agencies like HUD enforce strict safety standards for mobile homes.) Learning more about alternative housing options can open up options that are a better fit than other, more expensive types of housing.
Click here to read more on LendingTree’s latest report on that nation’s mobile home market.
