Manufactured and Modular Housing Appreciate in Value Equal To Site-Built Homes According to a Growing Body of Research

Housing appreciation is a key way for homeowners to build wealth. A growing body of research shows that off-site built housing can appreciate at nearly the same rate as site-built housing, making it a smart investment for an individual’s future.

The following contains excerpts from an educational white paper highlighting the wealth-building benefits of off-site built housing by Clayton, a national builder of attainable housing, and Next Step, a national nonprofit housing organization.

Off-site built homes, also known as manufactured, modular or CrossMod homes, are constructed inside a climate-controlled home building facility and finished on-site, allowing for a quicker, more efficient building process. These homes are uniquely positioned to bridge the affordability gap for entry-level and middle-tier housing and are more affordable for both developers and buyers. When placed on a property with a permanent foundation, these homes have the ability to build wealth over time like site-built homes.

The white paper incorporates statistics from a growing body of research showing off-site homes regularly appreciate similar to site-built homes, including:

  • A North Carolina family’s Clayton off-site built modular home, increased more than $135,000 in value over seven years (179,500 to $315,000)
  • Median manufactured home values across the nation increased by an average of 34.58% from 2016 t0 2021 – nearly the same as the average increase of 35.44% for single family homes, according to a 2022 study.
  • Off-site built housing is generally less expensive than traditional home construction methods because of economies of scale and building efficiencies.
  • A 2022 study shows the median value of off-site built homes increased more quickly in over a dozen states than that of traditional site built homes over the same five-year period. For example, Rhode Island, Nebraska and Idaho, the median manufactured home values more than doubled – increasing by an average of 110.82%. In those same states, site-built homes’ values appreciated just 57.95% over the same period.
  • A new study from Lending Tree shows off-site built homes are generally more affordable than site-built homes, and they have appreciated in value at the same rate as site-built homes from 2016 to 2021. Furthermore, an analysis of the Federal Housing Agency MH index by the Urban Institute shows the same appreciation pattern.

“We know many people are getting priced out of today;s housing market. At Clayton, we strive to open doors for more people by bringing home ownership within reach,” said Kevin Clayton, CEO of Clayton. “Owning a home provides individuals and families with more than a place to live – it’s an opportunity to build wealth over the years while earning more value for money spent.”

“Home ownership has been an essential part of the blueprint for wealth building in this country for decades, but current home prices aren’t reflective of what most people can afford,” said Stacey Epperson, President and CEO of Next Step. “If we want to address the home ownership gap for individuals and families, particularly for those living in historically under-served communities, we need to embrace the efficiency, quality, and affordability offered by off-site built homes.”


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