Why are manufactured homes increasing in value?
Manufactured home values have increased 60% since 2018
Once considered a depreciating asset, manufactured home values are increasing much faster than stick-built homes. Since traditional, old school financial advise considered a "mobile home" to be a depreciating asset like a car, this comes as a big surprise to many!
Data from the U.S. Department of Housing and Urban Development (HUD) and U.S. Census Bureau shows that prices for manufactured homes have risen by nearly 60% over the past 5 years as the nation continues to contend with a housing affordability crisis that stems in part from a shortage of sufficient housing inventory.
- Prices for mobile homes have surged 60% since 2018 - NY Post
- Even Mobile Home Prices Keep Rising - NY Times
- Mobile home prices rising more than single-family homes - LendingTree Study
- PA ranked #16 with a 65% increase in value from 2018-2024 (from $72K to $127K) - Manufactured homes are appreciating faster than site-built homes - HousingWire.com
New Manufactured Home Shipments vs Stick-Built New Homes in Pennsylvania
A recent article tracked the rate of new manufactured home shipments vs. site-built new construction permits throughout the USA.
- US States Investing Most in Manufactured Housing - Dec. 4, 2024
Pennsylvania manufactured home shipments in 2024 were 9.6% of all new construction homes in the state with an average sales price of $127,500 vs $270,780 median sales price for all stick-built homes in PA.
What about older manufactured homes?
When markets shift, often long-time home owners are at risk for predatory practices as they don't really know the current value of their homes. I've seen this in many market shifts throughout my 20+ years as a realtor. In Philly about 10 years ago, during a surge in values combined with gentrification of older neighborhoods, I met many elderly home owners who were aggressively approached by wholesalers and shady investors - some who literally 'stole' the home from the owners.
One lady I met told me the wholesaler literally forced his way into her home. When I looked at the contract he left her, it was not a valid contract at all. And I heard horror stories of elderly widows being defrauded from their home - ending up with no home, and no money.
What is a wholesaler?
Did you ever see those late-night tv ads promoting how to make a profit in real estate without using any of your own money? In essence, a wholesaler is a 'middle man' who purchases the right to sell your home and then sells that opportunity to another buyer without ever taking ownership. Sometimes it's called an A-B-C contract. You're the seller (A), the middleman is (B) and the buyer is (C).
I'm not a fan of wholesaling as I strongly feel if there's profit to be made - it should go to the owner directly.
I was first approached for these types of transactions when I specialized in short sales during the mortgage crisis. Many of those investors later faced federal charges for mortgage fraud, as they 'defrauded' the mortgage company from full value of the distressed home.
PA Act 52 - Wholesalers Must Have Real Estate License
In 2024, Pennsylvania enacted Act 52 which requires wholesalers to register with the state, obtain licensing, and follow disclosure policies. This new law took effect January 9, 2025 and is aimed at increasing transparency and regulation in the wholesaling market.
Since manufactured homes have a title not a deed, they fall into a different segment of real estate which may or may not be covered by this law as you can sell manufactured homes with a sales license, not as a realtor.
Just since the start of 2025, I've seen more mobile home owners approached by these types of investors. It appears wholesalers who aren't licensed realtors are now focusing on manufactured homes, especially with the recent increase in values.
Owners of older mobile homes are vulnerable to misleading estimates of their home values, and unscrupulous sales practices from predatory investors in today's market dynamics.
How to protect your mobile home's value
Its wise to interview 2-3 realtors active in your area to get a documented market value estimate, even if you plan to sell privately.
As with any home sale, you should receive detailed market analysis showing you current listings, those under contract and recent sales (past 6 months) of homes of a similar type and age in your area
When I meet a potential seller, we go through the macro-market conditions as well as local micro-market sales results specific to the home. Additionally, we discuss strategies to net the highest in todays market.
For more information and a confidential appointment about your home's value - contact me. Let's talk!
