In the early 2000s, Americans lost interest in the compact form of housing like mobile homes. From 2010, sales of mobile homes remained low, however, in 2018, Bloomberg reported that mobile homes were making noise.
In just 4 years since the Bloomberg report, sales of mobile homes have skyrocketed faster than single-family regular homes, as more and more Americans seek affordable dwellings.
Mobile homes are America’s biggest source of affordable housing, however, the rising prices due to increasing demands and investors’ activity are turning buyers away.
Although mobile home sales slowed in 2020, likely due to the Coronavirus pandemic, shipments of manufactured homes bounced back in 2021 and 2022. In fact, the year 2022 sold the most mobile homes since 2006 according to the data provided by Stacker.
The prices of new mobile homes are outpacing the prices of new single-family conventional homes. Mobile homes are becoming more expensive than traditional single-family homes, especially between 2020 and 2021. Although much of this can be attributed to the pandemic, the increasing cost of construction materials for conventional homes played a big role in the mobile home’s high demand eventually pushing the price up.
Lot rent prices are following suit. It’s not just mobile home prices that are going up. The cost of renting a lot where the mobile home sits are also increasing not only in Florida but in the whole country. The Midwest has recorded the highest lot rent increase according to the data while the average nationwide lot increase was 4.4%. This trend is likely to continue together with the increasing price of mobile homes.
It is no surprise, we are currently in the middle of a real estate boom!
Everywhere you look the cost of single-family homes, condos, and townhomes are rising to record highs at previously unthinkable speeds!
This dramatic rise in prices has led most single-family home sellers who are looking to sell their homes to wait until they see a slowdown in prices as each and every month their homes continue to skyrocket in value.
One may speculate and say that the rise in home prices will continue so long as interest rates remain low, others will say that the rise in prices will stay the same until the inventory of homes that are on the market catches up on the demand. Yet, still, others have stated that the rise in home prices is the new normal, meaning, that home prices will continue to go higher and higher as time goes on and the cost of a particular home today will be far less than what it will be down the road regardless of interest rates.
While no one has a clear crystal ball, one thing is for sure; real estate prices will continue to stay high for the foreseeable future.
With that basic fact stated, does that mean that mobile homes on leased land throughout the Sarasota area will increase at the same rate or will they continue to stay at the same price?
Mobile homes on leased land are viewed as and taxed as motor vehicles in the state of Florida. The reason for this is that when there is no land attached to the purchase of the mobile home the home is then viewed as a personal property sale. Once the home and the land that it is attached to is included in the sale then this means the home is now viewed as real estate and no longer personal property. The real estate carries with it a deed on the purchase whereas a piece of personal property carries with it a title.
What we here at The Mobile Home Dealer have seen right now is that mobile homes on leased land are staying at around the same prices as they were this time last year. We have seen some Sellers attempt to up the asking price of their homes to reflect the lack of inventory that is available in the single-family market. This attempt at raising their mobile home price has led to their homes sitting on the market for an extended period of time, many of which, have had to drop their prices in order to get the home sold.
The difference that we have seen in the mobile home space right now is that homes under the $30,000 price point that are in good condition are selling faster than ever. We are not able to put a finger on exactly why this is but we continue to see homes at this price point that are two-bedroom and two-bathroom to sell faster than we can keep up with. Many of our listings that meet this criteria never go on the market in a traditional sense as they are usually sold to one of our Buyers on our Buyers List.
While single-family homes continue to rise to record highs mobile homes on leased land continue to stay about the same price. This is yet another reason why buying a mobile home on leased land is such a good idea as it continues to be one of the last affordable options for housing in and around the Sarasota Florida area.
The Mobile Home Dealer is a licensed mobile home dealer and broker in Sarasota Florida and neighboring areas. We provide professional buy and/or sell assistance to our clients. If you have any questions, please get in touch with us by clicking this link. You may also visit our Facebook Page and send us a message
This is Mark Kaiser with The Mobile Home Dealer and we help mobile home Buyers and Sellers get to a better place in life.
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