Clayton® & Next Step® Highlight Evidence That Off-Site Built Homes Appreciate As Well As Site-Built Homes
Clayton, a national builder of attainable housing, and Next Step, a national nonprofit housing organization, have again combined efforts to release an educational white paper, this one highlighting the wealth-building benefits of off-site built housing.
“Off-Site Built Homes Proven To Appreciate In Value — Providing Equity Building Opportunities & Reshaping Today’s Housing Market” makes an appeal to policymakers and potential homebuyers alike that homes constructed in a production facility continue to be the best option for those navigating the market for an attainable homeownership solution.
Manufactured homes, including CrossMod® homes, and modular homes are constructed inside a climate-controlled facility and finished on-site, allowing for a quicker, more efficient building process. CrossMod 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, off-site built homes have the ability to build wealth over time like site-built homes.
“Homeownership 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 Next Step President and CEO Stacey Epperson said. “If we want to address the homeownership gap for individuals and families, particularly for those living in historically underserved communities, we need to embrace the efficiency, quality, and affordability offered by off-site built homes.”
The white paper incorporates statistics from a growing body of research showing off-site built 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 percent from 2016 to 2021 — nearly the same as the average increase of 35.44 percent 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 showed median manufactured home values more than doubled, increasing value by an average of 110.82 percent. In those same states, site-built home values appreciated 57.95 percent in the same period.
- An analysis of the Federal Housing Finance Agency’s MH index by a nonprofit research organization indicates the prices of manufactured homes perform similarly to those of site-built properties.
CrossMod homes, the newest category of off-site built housing, present a new evolution for the off-site built home industry. These homes blend off-site construction and on-site features such as drywall interiors, porches and garages to produce an affordable home that can be financed and appraised alongside site-built homes.
“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 homeownership within reach,” Kevin Clayton, CEO of Clayton, said. “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.”
Go to the Clayton website to read the full white paper on “Off-Site Built Homes Proven To Appreciate In Value – Providing Equity Building Opportunities & Reshaping Today’s Housing Market”.
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