Demand for affordable pre-manufactured housing continues to grow as buyers seek to exit the rental market. Factory-built homes can actually be viable and affordable options for many people, and newer financing options for manufactured homes make the process of purchasing one easier, for manufactured homes reduce mortgage defaults and therefore render loan rates as more affordable. Expect for manufactured housing to produce ongoing demand within the industry.
Thanks to the increased purchases of factory homes, many manufactured home communities are actually at or near capacity. Investors are therefore beginning to see such properties as good investments, especially since the steady cash flow and higher yields of manufactured housing are very attractive attributes. Deliveries of manufactured homes are higher now than they were a year ago, and experts predict the trend will continue as the housing market improves.
The Manufactured Housing Institute reports that factory-built homes cost ten to twenty percent less per square foot than do traditionally-built homes. The average price of a new manufactured home in the United States is just over $60,000, compared to over $270,000 for a new site-built home. The difference is glaring.
The high prices of home-building often deter many moderate-income buyers from the market, unless, that is, they consider the more affordable manufactured market. There are many other demographics, actually, that have already caught on to the trend. For example, many aging Baby Boomers seeking to downsize or to acquire second homes frequently purchase factory-built properties, and metropolitan areas lacking affordable housing or are experiencing job booms may overwhelm local housing supplies and turn instead towards manufactured building options.
The demand for manufactured housing within the real estate industry is growing. Keep these housing properties on your radar because this trend is here to stay for a bit!