If you’re looking for a new construction home, you could save up to 47% just by using this one simple tip. Don’t be scared of manufactured homes. A recent study by the Urban Institute’s manufactured housing sector, compared the costs between manufactured homes, new site-built homes and existing site-built homes. The study found that manufactured housing is 35 to 47 percent cheaper per square foot than new or existing site-built homes.
Despite this, the number of manufactured homes shipped each year has gone from averaging 242,000 per year between 1977 and 1993, to just 92,500 units in 2017, even though homes today are much higher quality. This phenomenon is thought to occur for a number of reasons, including restrictive zoning, unavailable finance, and lower appreciation.
The stigma on manufactured homes prevents many Americans from attaining affordable housing. We are going to debunk some of the stigmas above, including financing, zoning and appreciation.
More and more financing is becoming available through programs like Fannie Mae and banks like Wells Fargo. Fannie Mae is launching a 30-year financing program in New Hampshire that could be a starting point for government-sponsored enterprises (GSE) to offer similar loan terms nationwide.
In 2017, Wells Fargo hired two experienced manufactured housing executives to help expand into the industry, Matt Krasinski and Lew Grace of GE Capiutal Real Estate. Changes like these are coming to the industry all the time, offering more ways for people to finance and purchase manufactured homes.
Furthermore, HUD is exploring the possibility of deregulating manufactured housing. HUD announced that manufactured housing plays a vital role in meeting that nation’s affordable housing needs, providing nearly 10 percent of the total single-family housing stock.
Manufactured homes, which are built on a permanent chassis in a manufacturing plant and then transported, are constructed according to a code administered by HUD instead of according to state, local, or regional codes, like other types of housing.
This gives HUD wide authority to regulate or deregulate them. HUD’s review of manufactured housing regulation is part of a broader effort by the Trump administration to do away with regulations it deems “overly burdensome.”
In addition, today’s manufactured homes are built to much higher standards than before, which means their appreciation happens much more slowly. New construction manufactured homes meet rigorous building, environmental and safety standards. Many come with everything from granite counters and tray ceilings to stainless steel appliances and beautiful raised porches. You can choose from flawless vinyl wood flooring, large bathtubs, exquisite kitchen islands, open floor plans and a variety of modern upgrades. Plus, most new homes are energy efficient and come with a full warranty.
We hope this has opened your eyes to the exciting opportunity available with new construction manufactured homes!