Are you in the market for a budget-friendly new home? When shopping for a new home, weighing the options between a manufactured home vs traditional home is a big decision. Both options have pros and cons, and exploring all factors is critical before making an offer or down payment. From cost and customization to construction and location, prospective homebuyers have much research to do to make an educated decision.
Let's examine the distinctions between a factory-built manufactured home and a site-built home more closely to help you determine which option best suits your needs and lifestyle.
Key Factors to Consider
Cost
When shopping for a new place to live, the first question that comes to mind is, "How much?" Finances are a major factor when choosing between a manufactured and a traditional home. According to the Manufactured Housing Institute, the average sales price of a prefabricated dwelling is $108,100 without land, while a site-built home is $365,904. Factory-built homes are more affordable than conventional homes, making them an attractive option for those looking to own a home without breaking the bank. On the other hand, traditional houses typically come with a higher price tag since buyers also pay the land value, construction materials, and labor costs.
The lower the purchase price of a home, the lower the mortgage loan the homebuyer will have to pay. With a 20% down payment at a 7% interest rate, a 15-year mortgage for a $350,000 home would cost approximately $2,800 monthly. Comparatively, when one chooses a $200,000 manufactured home and land, the monthly mortgage amount would be around $1,700.
NOTE: While manufactured homes may have a lower initial cost, factors such as land lease fees and maintenance should be considered when estimating overall affordability.
Customization
The ability to customize a home to suit one's needs and lifestyle also distinguishes manufactured homes from traditionally built homes. The level of customization available between the two opposing options is significant. Standard homes offer a high degree of customization, allowing homeowners to design and build their dream homes from the ground up. In contrast, manufactured homes are factory-built but provide customization options in floor plans, finishes, and other features.
Construction
A big difference exists between constructing a prefabricated home and a site-built one. While both are constructed using the same materials, manufactured homes are built in a controlled environment, resulting in more efficient construction and reduced exposure to weather-related delays. The best part is that prices are up to 50% less per square foot than newly constructed conventional site-built homes. The construction process is subject to strict federal building codes set by the Department of Housing and Urban Development (HUD), ensuring quality and safety standards are met.
On the other hand, traditional builds are typically built on-site, which may result in longer construction timelines and potential weather-related setbacks. However, they offer the flexibility of using a wider range of construction materials and methods, allowing for greater customization and architectural diversity.
Location
Location is another factor to consider when weighing the differences between a manufactured home vs traditional home builds. Manufactured homes are often situated within manufactured housing communities or on private land, offering a more suburban or rural living environment. Planned communities surround local neighborhoods with shops, libraries, and other fun activities. They also offer exciting amenities like outdoor heated pools, billiards rooms, banquets, golf courses, and marinas.
On the other hand, traditional homes are found in various locations, including urban, suburban, and rural areas, providing greater flexibility in terms of proximity to amenities, employment centers, and community services.
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Resale Value
When purchasing a home, buyers should also think about potential resale value. Traditional site-built homes typically have a higher resale value than manufactured homes, mainly because of land appreciation and the perceived long-term durability of conventional home construction. However, manufactured homes hold value over time, primarily when well-maintained and located in desirable communities. The same report by the Manufactured Housing Institute stated that prefabricated homes increased by 39% compared to conventional homes at 33%.
The decision between a manufactured and a site-built home is always challenging. It's a choice that carries a lot of weight since one will be investing in and living in the home for a long period. While manufactured homes may offer affordability and efficient construction, traditional homes provide a slight edge on customization and the potential for higher resale value. By assessing the distinctions outlined, prospective homeowners can make an informed decision that aligns with their needs and long-term goals.
Deciding Between a Manufactured Home vs Traditional Home? Sun Communities is Here for You
When you're ready to join the 22 million Americans living in a manufactured home community, we can help build by finding prospective homeowners a residence in one of our many communities nationwide. Begin your search here by selecting which state you want to live in.
We are continuing to grow and expand our portfolio to serve homeowners better. Check out our ground-up developments in Texas and Colorado here.