Existing Site-Built Home Sales Continue to Fall as Manufactured Home Sales Surge
Beginning in 2013, the annual shipments (sales) of manufactured homes began ticking upward, according to the U.S. Census Bureau. Although they decreased in 2020, likely due to the pandemic, shipments of manufactured homes bounced back with gusto in 2021 and 2022. In fact, 2021 has seen the most monthly shipments of manufactured homes since 2006.
Meanwhile, the sales of existing pre-owned site-built homes have fallen significantly as prices have eliminated many low-to-medium-income American home buyers. Those homebuyers are discovering manufactured housing to be at least equal, and often superior, in every respect, to site-built existing and newly constructed traditional homes, and will have a cost of up to 50% less. The following reflects the continuing growth and affordability of manufactured homes versus site-built homes.
MANUFACTURED HOMES: Shipments (sales) of manufactured homes have continued to increase, month over month, for each of the first 6 months of 2022, up 20.5% compared to June 2021. Remarkable, considering last year’s (2021) shipments reached the highest totals in over 15 years.
SITE-BUILT HOMES: Existing site-built home sales fell 5.9% from June, the sixth-straight monthly decline, and 20.2% from one year ago, with all four U.S. regions recording fewer sales, the National Association of Realtors said.
MANUFACTURED HOMES: The average factory-built home costs $106,590* to build at $72.46 per square foot. (Single section $71,610 – multi-section $129,840).
SITE-BUILT HOMES: The median existing-home sales price climbed to 10.8% from one year ago to $403,800, up 10.8% from July 2021 ($364,600), as prices increased in all regions. It was the 125th consecutive month of year-over-year price increases, the longest on record.
Northeast region sales of existing homes fell 7.5% from June and 16.2% down from July 2021. The median price in the Northeast was $444,000, up 8.1% from last year.
Midwest region sales of existing homes declined 14.4% from July 2021. The median price in the Midwest was $293,300, up 7% from the previous year.
South region sales of existing homes declined 5.3% in July, down 19.6% from the previous year. The median price in the South was $365,200, up 14.7% from July 2021
West region sales of existing homes declined 9,4% compared to June and down 30.4% from this time last year. The median price in the west was $614,900!, an 8.1% jump from July 2021.
Realtor.com’s Market Trends Report in July shows that the largest year-over-year median list price growth occurred in Miami (+36.2%), Memphis, Tenn. (+32.7%), and Orlando (+28.4%).
“We are witnessing a housing recession in terms of declining home sales and home building,” said NAR Chief Economist Lawrence Yun. “However, it’s not a recession in home prices. Inventory remains tight and prices continue to rise nationally, with nearly 40% of homes still commanding the full list price.”
*Average as of October 2021