Manufactured Homes are Becoming More Popular. Here’s Why.
Based on the latest statistics derived by the U.S. Department of Housing and Urban Development (HUD) from reports compiled by the MHARR (Manufactured Housing Association for Regulatory Reform), production of manufactured homes continues to show accelerated growth going into the second half of the year.
In March 2015, a total of 5,602 manufactured homes were produced. This year, 7,110 manufactured homes were produced in the same month, a figure that’s higher by 26.9%. For the entire first quarter of 2016, a total of 19,101 homes were produced vs. 15,374 homes produced in the first quarter of 2015, a 24.2% difference. The top 5 states with the highest shipment of manufactured homes for the first quarter of 2016 are Texas (3,451 homes), Florida (1,365 homes), Louisiana (1,070 homes), North Carolina (903 homes), and Alabama (878 homes).
From this data, it would seem there’s no more denying the fact that owning a manufactured home is becoming more desirable as more Americans are realizing its benefits.
Why Opt for a Manufactured Home
Manufactured homes have long been stigmatized as an unpopular housing option because of the outdated stereotypes associated with it. Fortunately, many people now know better and have come to recognize the many benefits of a well-built and properly maintained manufactured home. Affordability, quick construction time, energy-efficiency, flexibility, and durability are just a few of its perks. If a buyer owns the land where his/her manufactured home is to be placed, the home will generally appreciate rather than depreciate in value. Of course, there’s also that advantage of having the option to transfer to a new location in case one wants to or needs to.
The Biggest Hurdle
Traditional homes are considered as real property. In contrast, some manufactured homes are categorized as personal property (similar with a car or a boat). Because of this designation, buyers of manufactured homes are unable to enjoy the privilege of being granted mortgage loans. Instead, they have to turn to personal “chattel” loans to finance their housing. It’s not an easy decision to make since a chattel loan has a higher interest rate than mortgage loan, and fewer provisions for consumer protection.
In spite of how attractive a manufactured home is, the fact that financing the purchase might turn out to be more expensive than it should be can become a turn-off for potential buyers and remains a challenge that might only be fixed by altering the current federal titling laws. While there have been attempts to address this discrimination and provide better support for deserving manufactured home buyers, there does not seem to be any clear resolution at this time. Without any forthcoming changes in existing laws, continued production growth of manufactured homes might be up to the manufacturers themselves. By partnering with lenders who offer reasonably-priced loans, they can attempt to help more interested buyers achieve their dream of having their own home.
Current information is proving that a manufactured home is steadily becoming a popular choice for an increasing number of homeowners. Needless to say, we will probably have to wait for some drastic amendments to relevant federal laws before we can see the maximum growth potential of manufactured homes.
Affordable Housing from Big Sky Homes
Here at Big Sky Homes we have one goal: to get you into a great house that won’t break the bank! We strive to provide the highest quality homes, at affordable prices, so that every person in Billings can be a homeowner.
Come to our lot and see what we have available, and keep in mind that all our homes are fully customizable. This is your home, you get to pick what goes into it!