I am a sucker for a brand-new manufactured home- the cool, crisp lines of vinyl along with all the new design features- we really have come a long way as an industry. I have been in the business for 17 years and do, however have a sweet nostalgia about a well-kept metal on metal home. Often, I think we focus too much on the new and forget that older homes play an imperative role in our communities and to combat our affordable housing crisis.
Recently, I put in an order for 88 single-wide homes that are going to a group of communities we operate just outside of Columbus, Ohio. On average, these homes cost $55,000, with lot modification and home installation, we are at about $65,000. The average single-family home value in this market is north of $150,000, so we are less than half of stick-built homes- that’s a pretty good value proposition. We will rent these homes for over $800/month and for a resident to buy one of these homes will cost them a little under that per month.
There is a large population of people that will love to jump on buying or renting one of these 88 new homes and consider the price point affordable and of value; a win for both parties. But there also is a population of people where $800 is out of their price range or they do not want to pay that much for housing, if there is a cheaper option available. This is where used homes become important.
“But used homes do not look as good as new homes!”
In most cases, you’re probably right. But if an older home is maintained properly, it can be a positive attribute for a community, both from a value proposition and from an aesthetic perspective. We spend a lot of time both renovating/selling used inventory homes and ensuring the proper maintenance of our existing tenant owned homes because we know the least expensive form of housing available in our communities are existing manufactured homes. In certain situations, we go as far as paying for some resident home improvements (even if it is technically their financial responsibility) because we believe that increasing the longevity of their home will be of value to us as a community. This is also a great way to increase resident relations, curb appeal and increases the condition when a resident moves out.
The Manufactured Housing Institute (MHI) hired Trifecta Research in 2018, to do a profile on manufactured home residents. Some of their key findings were that:
- 71% of residents cite affordability as a key driver behind their choice of housing,
- 51% of manufactured homeowners live in a home manufactured before 1996 and
- 64% of MH households made under $40,000 annually.
Bottom line- there is a need to maintain and revitalize older Manufactured Homes
