First-time home buyers struggling to navigate record high prices and low inventory are turning to mobile homes as affordable housing alternatives, Realtor.com reports. Though mobile homes are significantly less expensive than single-family homes, their median values are on the rise thanks to a larger share of Millennial buyers in the current market.
Mobile homes have appreciated 39% from 2014 to 2019, roughly 6 percentage points higher than median appreciation of single-family homes. As more buyers look for options that can accommodate flexible, work-from-home lifestyles during the COVID-19 pandemic, mobile homes are more popular than ever.
Yes, mobile homes often get a bad rap. But their values have been rising faster than single-family homes, according to a recent report from online financial services marketplace LendingTree. These homes have become even more appealing recently as they support the on-the-go, work-from-home lifestyle during the COVID-19 pandemic.
“Because single-family home prices are so high, some middle-class buyers—especially younger ones—could increasingly turn to mobile homes,” says LendingTree senior economic analyst Jacob Channel. “Even though the value of single-family homes is rising very quickly, the lower price point of mobile homes allows for an even faster ascent.”