I have had many opportunities to work with listing/purchase of manufactured homes in various community parks (in the DFW area) and find that there are many false/bias perceptions about this type housing. It’s important to understand the differences between the terms “mobile home”, “manufactured home”, and “modular home”. Often these homes are called ‘trailers’. [Likely due to the connotation of homes that can be moved via trailer or as a trailer.]
A “mobile” home is a factory-built home prior to 1976 (there were no standardized construction standards);
A “manufactured” home is a factory-built home constructed after 1976 (to highly regulated standards set by HUD (department of housing & urban development);
A “modular” home is a factory-built home constructed after 1976 (to highly regulated standards often higher quality than stick-built homes) and usually with permanent foundation (constructed in sections and assembled on-site).
For a fuller explanation of these differences see: https://www.claytonhomes.com/learn/home-buying/mobile-manufactured-and-modular-homes-defined
When I talk to folks about these homes some of the key objections (and negative perceptions) that I hear:
- They are poorly constructed – since 1976 (as mentioned above) manufactured homes have been built to high standards set by HUD which control:
- Design & construction
- Body and frame requirements
- Thermal protection
- Plumbing and electrical
- Fire safety
- Energy efficiency
- They depreciate in value – this is highly related to the community in-which they are located. The old term concerning purchase of homes – ‘location, location, location’ still applies for manufactured home communities. For a top-notch community, such as Harston Woods in Euless, TX, homes generally appreciate. Like all homes – which are a significant investment – the homeowner needs to maintain (and update) the home (over time). For homes that are well-maintained – generally their value goes up in-step with the economic factors that affect the area in general.
- The cost of the land lease makes me uncomfortable –
- The land lease covers amenities in the community – typically the land lease costs do include amenities in the subdivision such as:
- Community Pool(s)
- Community fitness center
- Park(s) & playground(s)
- Walking trails and dog/pet areas
- The land lease – makes possible for the homeowner to move the home to another location (such as land that they purchase) if they so desire. They can take their investment with them.
- The land lease – allows control over the subdivision; whereas in most traditional subdivisions (even those with HOA’s) it is not possible to restrict – in these subdivisions the following is possible:
- Can restrict home ownership from those with criminal background or offenses
- Can restrict homes from being leased or rented (implying the subdivision is comprised of homeowners only)
- Can restrict home ownership from those not financially able
- Can enforce community guidelines (folks not adhering to community guidelines (such as maintenance of their homes) can be ejected – they must move their homes out of the subdivision)
- The land lease covers amenities in the community – typically the land lease costs do include amenities in the subdivision such as:
- The type of community is less desirable (crime, schools, etc.) – this aspect certainly does exist in some manufactured home communities (as well as many stick-built subdivisions) but when we consider top-notch communities (such as Harston Woods/Euless) we find excellent communities with low crime rates, excellent schools, and zero criminal offenders. Compare to other communities and you’ll find that Harston Woods is an excellent, family-oriented, community:
*note this registered offender does not reside in Harston Woods
How affordable are these homes?
Typically, manufactured homes in the DFW area are going to be priced lower than $150K (for the house itself). [Manufactured homes range in price as low as ~$40K for older homes up to ~$150K for new homes.] Land lease prices are typically in the ~$500/month range. Some key considerations:
- Property tax – typically property taxes for manufactured homes are significantly less than stick-built homes; as little as 1/3rd the cost of a stick-built home. For instance, a $150K stick-built home in the DFW area will have property taxes of 2.5%-3.0% ($3,750-$4,500 or $312-$375/month) depending upon location. Versus a similar priced manufactured home at less than $1500/yr (or $125/month).
- Note – manufactured homeowners (on leased land) in Texas can claim their home as a ‘homestead’.
- Price-per-square-foot is significantly less for a manufactured home – one gets more ‘bang for their buck’.
- The Living experience – In comparison to townhome/condo or apartment living – the manufactured home sits on its own independent lot – not stuck directly besides, below, or above another residence.
A comparison of condo/townhomes & apartments versus manufactured homes (in Harston Woods) based on size, age, and price-point investigating different types of homes that cost less than ~$1700/mo:
Manufactured homes are a viable solution for many homeowners and considered a huge solution to the ‘affordable housing crisis’ that exists in communities today :
Purchasing new construction manufactured homes – when one investigates new manufactured homes they will find homes with many of the typical features that we find in new construction of stick-built homes:
- Open floorplans
utilizing sheetrock walls, crown molding, quality flooring and materials:
- Granite and/or formica counters
- Stone/tile – flooring, shower surrounds (with accents), fireplace (with ornate mantels)
- 9-ft ceilings; vaulted ceilings; trey ceilings
- Kitchens with
amenities like:
- Stainless Steel appliances
- Large Islands & pantries
- Farm sink & modern fixtures
- Quality cabinets; stone/tile backsplash
- Pendent & can lighting
- Energy efficient low-e
windows, doors, insulation, and HVAC systems
- Airtight construction
- R11-R33 insulation
- Energy efficient water heater & (SEER 14/15) HVAC systems
- MBaths with amenities
like:
- Dual vanities & hard/formica or granite counters
- Large jet or soaking tubs & separate showers
- Low-flow toilets
- Large walking closets
- Home warranties which includes structural and mechanical aspects
- Pier & beam foundations secured using the Oliver Technologies design method
See this great article about how manufactured homes are constructed: https://www.mhvillage.com/blog/how-are-mobile-homes-built
Here’s a couple of videos showing the construction process:
- Want to see how a manufactured house is made? Redman Homes in Pa MyHomeInEdison.com – YouTube
- Cavco Homes – Building to Make a Difference! – YouTube
- How Manufactured Homes are Built l Clayton Studio (claytonhomes.com)
Additional info: https://www.claytonhomes.com/our-building-process
Tax writeoffs – some may believe that there are no tax benefits when owning this type home – not so (I always recommend that folks rely on advice from their CPA/Accountant/Attorney first) – see this great article about tax writeoffs for these homes: : https://www.triadfs.com/news/do-home-ownership-tax-breaks-still-apply-to-manufactured-homes]
Some pictures of new modern manufactured homes:
Conclusion – the general observation is that one can purchase a much newer, larger, manufactured home for less cost/month and ultimately still can gain value appreciation and autonomy. An apartment has zero value appreciation and townhome/condos, for the same price, are generally going to be older and smaller, and is experienced more like apartment living.
Note also MH Industry Trends & Statistics – we find that 90% of manufactured homeowners are satisfied with their homes and 38% of those anticipate never selling their homes (while 62% plan to stay for at least 10 or more years). Check out other interesting survey results from manufactured homeowners – https://www.mhvillage.com/pro/data-infographic-manufactured-housing-industry-statistics/