Buying a home is definitely not as easy as it once was. Bidding wars. Skyrocketing prices. Historically low inventory. In fact, many homebuyers are contending with houses being sold before they ever are listed publicly as for sale. Combine all these challenges, and it’s clear why many Millennial first-time homebuyers are considering something they may not have before: buying a mobile home.
Mobile homes have often gotten a bad rap, but now they are getting a new look as a much more affordable option during a red hot real estate market. Beyond affordability, mobile homes can offer appeal due to potentially more green space around them—as well as the ability to move the home if desired. In fact, in some cases, mobile home values are rising faster than single-family homes, according to a recent report from Lending Tree. It is important to note that the reason for this headline-grabbing statement is because mobile homes have a dramatically lower starting price point, which makes a percentage-driven increase look very high when compared to traditional housing, which has a significantly more expensive starting price point.
“Millennials are definitely getting priced out of the current real estate market.” –Jason Dorsey
With mobile home prices coming in at about $190,000 less than single-family homes—and the current bidding wars and seller scarcity in today’s market—they are starting to make a lot of sense for many Millennials who are eager to get into a home and move out of the cycle of renting.
“We’re seeing a lot of pressure on Millennials to come up with even larger down payments as well as the higher monthly mortgage and holding costs.” –Jason Dorsey
Because price points on mobile homes are significantly lower, Millennials are better able to make a downpayment that will create a manageable mortgage payment where they can still put money away for the future—as opposed to becoming homeowners but also “house poor.” The mortgage payment on a mobile home can even be less than renting a nice apartment or single-family home!
“Millennials are taking a new interest in mobile homes because it fits their remote or hybrid work lifestyle as well as potentially giving them more options for green space and flexibility of geography.” –Jason Dorsey
At the same time that mobile homes are more appealing financially, mobile home parks are often becoming more amenity-driven. Add to this the growth of remote work, and there is a clear overlap between being able to have a lifestyle they enjoy and a price point that also is extremely attractive. At The Center for Generational Kinetics, we expect Millennial interest in mobile homes to continue as long as traditional single-family home prices stay elevated and hybrid or remote work continues to be an option—and we will be watching.
Thank you for being on this journey of discovery with us. Stay tuned as we continue to uncover more of the latest Millennial trends!
