Mobile homes have become unexpected hot commodities in U.S. real estate market, particularly in Wyoming, Illinois, Kentucky and Mississippi, where values have more than doubled since 2017.
Amid an ongoing housing affordability crisis, mobile homes are becoming a rapidly appreciating asset, even outpacing the value increase of traditional homes. A LendingTree report spotlighted a 77.1 percent average increase in mobile home values nationwide from 2017 to 2022, while single-family home values increased 46.7 percent, excluding land, over the same period.
Wyoming led the pack at a 127.6 percent increase in mobile home value since 2017. Illinois follows closely with a 110.1 percent jump, and Kentucky and Mississippi had surges of 107.3 percent and 103.7 percent, respectively.
While the report found that Massachusetts saw a slight decline in mobile home values, the national average sales price for new mobile homes stands at $127,300, compared to the average $409,300 for new single-family homes.
saintho/Getty Images
These newer mobile homes, also known as manufactured homes, are permanent residential structures that are pre-assembled in a factory setting and then positioned on a designated lot. Typically linked with the classic trailer home lifestyle, modern mobile homes now offer a level of permanence and stability comparable to houses constructed on-site with foundations.
The increase in mobile home values comes at a time when the typical American household needs an annual income of around $115,000 to afford a median-priced home, which, according to Wisevoter, is roughly $47,000 more than the typical household earns. The figure is much higher in urban centers, with cities like San Francisco requiring incomes upwards of $400,000 to afford a home.
Are Americans Buying Mobile Homes?
While largely outnumbered by the nearly 85 million single-family homes in the U.S., mobile homes represent nearly 4.3 million homesites in more than 43,000 communities according to a Manufactured Housing Institute (MHI) report.
Newsweek has reached out to MHI for comment via email.
According to a separate report issued by the Census Bureau, which only asked manufacturers to report units sold or units intended to be sold for residential use, there has been an increase in mobile home sales since 2018.
The annual rate of shipments for new manufactured homes peaked in 2022 with 112,900 units shipped, which correlates with the period when the Federal Reserve initiated interest rate hikes, subsequently influencing mortgage rates to surge.
Mobile Homes More Popular in the South
Mobile home ownership stands out most in Southern states, the MHI report found, with Texas and Florida leading in total manufactured home shipments.
Notably, mobile homes are increasingly representing a larger fraction of southern housing markets, particularly in Mississippi, Alabama and Kentucky, where they comprise 33.5 percent, 31.4 percent, and 29.3 percent of all new single-family homes, respectively, according to a report.
Investors seem to like the prospect of mobile homes as well. Skyline Champion Corp., one of the largest manufactured and modular homebuilders in the country, has seen its stock rise more than 200 percent since 2018.
As affordability remains a central issue, the increase in mobile home values and sales reflects a component of the housing market, with states like Mississippi, Alabama and Kentucky seeing a significant portion of their new single-family homes being manufactured ones.
Do you have a money-related story to share? Newsweek wants to hear from you. Contact us at [email protected].
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.