The dream of owning a single-family home has been pushed out of reach for many prospective buyers burdened by rising mortgage rates or fierce bidding wars throughout the COVID housing boom, but other housing alternatives offer the same benefits of homeownership at a more affordable price. Surprisingly, single-family homes don’t appreciate as much as mobile homes, condos, or townhomes, which saw double-digit growth reaching 30.4% in April 2021 compared to an average 13.3% growth for single-family houses, Realtor.com reports.
Not only can single-family substitutes help homeowners build equity, but they also see less competition from buyers and spend more time on the market, meaning an easier purchasing route for buyers otherwise priced out in the single-family market.
“If single-family homes are feeling out of reach, there are alternatives,” says Hannah Jones, an economic data analyst at Realtor.com. “Other home types, such as condos and mobile homes, could offer another good opportunity for homeownership that’s more within budget.”
“When you own a home, no matter what type that is, you’re able to build up equity, which increases your wealth,” says Realtor.com Chief Economist Danielle Hale. “If these other types of homes—which are generally more affordable than single-family homes—can help you get your foot in the door and start the process of building wealth for yourself, then they’re worth considering.”