Pros And Cons Of Manufactured Homes: A Guide

Home is more than just a place to park your car or sleep at night – it’s the place where you can make memories and feel at ease in your own space. If you’re searching for a new home to make your own, it’s important to factor in your financial situation to set realistic goals.

For many, manufactured homes are a great option when affordability is a priority. Below, we provide a comprehensive guide on manufactured homes so you can determine if they meet your homeownership goals.

What Is A Manufactured Home?

Manufactured homes are homes put together in pieces in factories based on building codes put in place by the U.S. Department of Housing and Urban Development (HUD). The homes are built in a factory, starting with a steel frame. The factory will then add layers of insulation, the flooring system, plumbing and the wooden floor frame. 

Once assembled in this controlled environment, the home is then transported to the home site and installed on a temporary or permanent foundation. Because it’s already been assembled, a manufactured home isn’t exposed to the elements like stick-built homes.

While manufactured homes used to be called “mobile homes,” the term shifted to “manufactured” in 1976 with the passing of the National Mobile Home Construction and Safety Act, also called the Manufactured Home Construction and Safety Standards or the HUD code. The act was passed to ensure the safety and quality of manufactured homes.

HUD’s manufacturing and safety standards require that manufactured homes contain a certification label or HUD Tag, which ensures that it meets body and frame requirements, thermal protection, plumbing, electrical, fire safety and other HUD code standards. It will usually fit three general floor plans: single-wide, double-wide or triple-wide.

What Is The Difference Between Modular And Manufactured Homes?

Modular homes and manufactured housing are prefabricated structures, meaning both types of homes are factory-made. However, a modular home is partially constructed in a factory, not fully built in a controlled setting. Modular homes must meet local building codes and standards (as opposed to HUD standards) and may look just like traditional stick-built homes. You can also choose from a wider variety of floor plans than manufactured homes.

Pros And Cons Of Manufactured Homes

It’s a good idea to weigh manufactured homes’ pros and cons before you decide whether they will make sense for your situation.

Pros Of Manufactured Homes

Manufactured homes might be a good idea for some home buyers based on these benefits:

• Affordability: Manufactured homes may be more affordable than stick-built homes because of the standardization of creating the homes in a factory and cutting down on assembly costs.
• Customization: You can customize the floor plan, kitchen, living room and exterior of a manufactured home, such as choosing kitchen islands, backsplashes, porches, roof and siding preferences.
• Fast construction: It may take less time to build a manufactured home compared to a stick-built home. The construction time may be shorter because the factory process is streamlined and less likely to encounter delays.
• Standards: Manufactured homes have high safety standards, including HUD’s environmental impact standards. In short, HUD standards ensure that you’ll live in a quality home.

Cons Of Manufactured Homes

Manufactured homes might not be a good idea for some home buyers for the following reasons:

• Must have a foundation: Unlike a camper or RV, you can’t move your home around. Manufactured homes require finding undeveloped land or space in a manufactured home community.
• Community fees: Depending on your location, you may need to pay applicable community fees, typically between as little as $100 per month to $800 per month. Not only that, but like rent for an apartment, these fees can increase costs upon renewal.
• Little appreciation: Long-term value might not appreciate as much as it would for a traditional home due to the manufactured home categorization of “personal” property versus “real” property.
• Reputation: Manufactured homes may have a negative connotation, and many homeowners in certain markets veer away from investing in manufactured homes.
• Financing challenges: You may find financing a manufactured home more challenging than a traditional home, as outlined above.

How Much Do Manufactured Homes Cost?

According to the latest available data from the U.S. Census Bureau, the average cost of manufactured homes was $120,000 as of October 2023 across all available widths. The average price boils down to about $85 per square foot.

Buying land can cost more upfront than living in a manufactured home community but also requires knowledge of zoning laws and other local requirements. It may add to your costs if you need to incorporate a foundation:

• Pier and beam foundation: A pier and beam foundation typically costs $8,200 – $22,000. Anchors hold your home down with steel straps to the frame.
• Slab foundation: A slab foundation usually costs $5,000 – $40,000 and forms a slab of poured concrete with anchors.
• Basement foundation: Basement foundations cost about $13,000 – $30,000 and offer larger living spaces for occupants.
• Pit/crawl space foundation: Pit foundations typically cost $13,000 for a home that is 1,000 square feet on the ground level, and refer to digging a pit out of the ground underneath your mobile home to make a crawl space. 

You may also pay delivery costs, applicable taxes (including property taxes) and for specific features that may differ compared to “traditional homes.” Costs will likely vary depending on the area where you live.