As a real estate agent, you know that your clients have varying budgets and preferences when searching for a home. One of the ways to help them achieve their housing goals is to educate them about the different types of housing available in the market. In this blog post, we’ll review a study conducted by the Joint Center for Housing Studies of Harvard University that compared the costs of manufactured and site-built housing. This review will provide you with valuable insights that you can use to guide your clients as they search for their dream home.
The study by the Joint Center for Housing Studies of Harvard University revealed that manufactured homes cost less per square foot than site-built homes. According to the study, the average sale price for a new manufactured home in 2020 was $91,400*, while the average sale price for a new site-built home was $408,800. The study also showed that the average price per square foot for a new manufactured home was $51, compared to $154 for a new site-built home.
The lower cost of manufactured homes can be attributed to the efficient production process used to manufacture them. In a factory setting, manufacturers can save time and money on labor, materials, and transportation costs. Also, manufactured homes are built to comply with federal regulations, which reduce the need for on-site inspections and oversight. This streamlined process also results in faster construction times, making manufactured homes ideal for those who need to move in quickly.
It’s worth noting, however, that the lower cost of manufactured homes is not necessarily correlated with lower quality. In fact, manufactured homes are built to the same standards as site-built homes and are subject to strict codes and regulations. The study also found that the energy efficiency of manufactured homes has improved significantly in recent years, making them as efficient as site-built homes.
Manufactured homes also offer other advantages over site-built homes. For instance, they are often placed in communities that offer amenities such as swimming pools, clubhouses, and playgrounds. These communities may also provide services such as lawn care, maintenance, and security. This provides a sense of community and can be attractive to those looking for a “neighborhood” experience.
As a real estate agent, you play a vital role in helping your clients make informed decisions when it comes to purchasing a home. The study by the Joint Center for Housing Studies of Harvard University provides valuable information about the cost and quality of manufactured homes compared to site-built homes. By understanding this information, you can guide your clients towards a housing option that fits their budget and lifestyle. Remember, manufactured homes are not only a cost-effective option, but they also offer many valuable amenities and community experiences. With the right guidance, your client can find their perfect home.
*Important to remember that you need a lot to build the manufactured home on. A building lot (if available) can easily cost $100K after the cost of approvals, development, and developers carrying costs. That said, developing a community of building lots that would allow for stick-built and pre-manufactured homes could help solve Onondaga Counties’ housing crisis… particularly for first-time homebuyers.
