Do Manufactured Homes Appreciate or Depreciate in Value?
Yes, manufactured homes appreciate in value.
It’s been a long-time misconception that manufactured homes depreciated after the initial sale, as the way cars do. However, recent studies including a pilot report put out by the Federal Housing Finance Agency show manufactured homes do retain value in a very similar fashion to site-built homes.
The tide of public opinion is shifting in regards to how manufactured homes hold value and appreciate over time, thanks largely to the strides the industry has made in recent years. But, for those who own a manufactured home, the FHFA report merely goes toward verifying what has been known for years – that mobile homes can and do increase in value.
The Report was Part of the FHFA Quarterly Price Index Report on Home Values
“With this HPI report, FHFA is making information about these indexes available for the first time,” the report states. “The indexes are largely experimental at this stage. The manufactured home data used in forming these series include information for homes titled as real estate and not chattel.”
What Information Was Used to Derive Manufactured Housing Tendency to Increase in Value?
Manufactured home loan data from Freddie Mac and Fannie Mae produced a pair of new indices that lead to the conclusion that manufactured homes increase in value. The first is a purchase-only index, which accounts for initial purchase values. The second set of data was an all-transactions index that takes into account manufactured home appraisal values.
Purchase-Only Index for Manufactured Home Value
Home Values Trend in a Very Similar Fashion
Notice how the nearly identical peaks in the third quarter of ’07 result in similar volatility in the site-built data? Clearly, the first quarter of 2012 shows a deeper trough for the manufactured home data. But that represents a slight difference in the face of what for years has been considered a widespread on home values and value retention between the two home types.
The report also clears up the debate over how long mobile homes last. Like any other home, a manufactured or mobile home will retain and gain value with proper maintenance and upkeep. That same maintenance and upkeep will ensure you get the most out of your manufactured home.
All-Transactions Look at Manufactured Home Rate of Appreciation
The approach for the new manufactured home value indices uses the same methodology employed by FHFA in creating its long-running quarterly house price index. However, the new indices to shed light on how manufactured homes retain value pools national data on the homes. The 40-year HPI uses state-by-state data.