According to a Census Bureau report, millennials outnumbered baby boomers in 2015. Over the past few years, this generation has become a driving force in different markets, including the real estate market.
As rental rates continue to rise across the country, the number of millennials who want to move from renting to owning has increased exponentially, comprising 80% of potential home buyers.
However, the millennial home buyers often struggle to find a real possibility in today’s site-built market. Fortunately, the manufactured housing industry offers a viable solution to that problem. In this post, we’re going to analyze the top five reasons why a millennial home buyer should consider buying a manufactured home.
Reason #1: Manufactured Homes Are More Affordable Than Conventional Housing
On average, new manufactured homes sell for $73,000 (without land), while site-built houses sell for $372,000. The huge difference in price clearly indicates that buying a manufactured home, even with land, is significantly less expensive than purchasing a comparable site-built home. That is because manufactured homes cost significantly less to build compared to conventional houses.
To begin with, manufactured homes are built in factory environments where manufacturers can strictly control all the parts of the construction process, use standardized end-to-end manufacturing operations, prevent costly mistakes and damages, and avoid weather delays. Furthermore, most manufacturers purchase materials in bulk. All these factors lead to economies of scale, which contribute to lower sales prices.
Reason #2: Manufactured Homes Are High-Quality
Manufactured homes are built with high quality materials and installed according to strict standards, just as site-built construction. Designed with the millennial customer in mind, today’s manufactured homes are also aesthetically pleasing and look similar to their traditionally constructed counterparts.
When buying a manufactured home, buyers can choose among different floor plans, ranging from basic, minimalist spaces to luxurious interiors. And even though most manufactured homes are built based on existing floor plans, manufacturers provide various customization options that can better fit the personal style and needs of every millennial home buyer.
Inviting porches, brick or stone masonry, beautiful windows, and high-end details accompanied by gorgeous landscaping are just some of the features that can add curb appeal and give manufactured homes the same look and feel as site-built construction. The inside of a manufactured home can also be customized with many different amenities, including vaulted ceilings, fireplaces, granite countertops, elegant bathrooms and stylish floors.
Reason #3: Manufactured Homes Are Durable
Manufactured homes are just as durable as traditional site-built homes. Besides being built with HUD-approved materials and according to state, local and regional codes, these homes are attached to permanent foundations that must also comply with strict installation standards.
During the installation process, home sections (roof, walls and floors) are properly aligned, joined together, supported and sealed along the marriage line to provide a solid structure that can withstand any environmental stressors. Built for a lifetime of safe and comfortable living, modern manufactured homes can last as long as conventional site-built construction, if they are properly maintained.
Reason #4: Manufactured Homes Appreciate in Value Just Like Traditional Homes
Manufactured homes appreciate in value the same way conventional homes do. Because modern manufactured homes are sturdily built and have great curb appeal, their market value increases when home values increase in a specific area.
That is good news for millennial home buyers. Since building equity is one of the most important parts of home ownership, opting for an affordable manufactured home that appreciates in value over time is a great way to build wealth. If a millennial home buyer rolls the cost of both the home and land into the same manufactured home loan with land, he or she may be able to tap into equity sooner than expected, especially if that land remains an appreciating asset.
Reason #5: Manufactured Homes Are Energy Efficient and Environmentally Friendly
Millennials are more environmentally and socially conscious than previous generations. What’s more, they’re constantly looking for ways to save some money. Manufactured homes offer a housing option that doesn’t only involve less construction waste and better use of resources compared to conventional homes; they can also be equipped with intelligent, eco-friendly features like low-E windows, programmable thermostats, cool roofs, upgraded insulation and many more. In fact, many manufactured homes are Energy Star rated, which proves their energy efficiency.
If you’re considering buying a manufactured home, you don’t have to wait to get a jump start on the process. With endless floor plans and design options, a wide range of prices to fit many budgets, and different manufactured home loans from reliable lenders, manufactured homes provide a smart investment alternative to today's millennial home buyer.