MANUFACTURED HOMES • April 28, 2016

Affordable Starter Homes Become Scarce

Affordable Starter Homes Become Scarce Image
Buying a starter home is a longstanding tradition for young people and their families. In the past 15 years, however, the prices of starter homes—and we’re talking about starter homes in mid-population cities—have soared to more than $150,000. In California, it’s even higher, with several cities in that state topping $350,000 or more for starter homes. After the housing crisis, investors snapped up foreclosed homes around the country and turned them into pricey rentals. Stricter financing rules meant that homeowners who wanted to buy larger homes couldn’t move out of their starter homes, and in turn, fewer inexpensive homes went on the market.
 
We’ve found that since first-time homebuyers are often younger, they may not be able to afford the kind of home they’d like to live in. So, they’re getting squeezed out of the housing market before they can even enter it. Some are having to put off their dream of home ownership for several more years, buy a smaller home, move to a more affordable home in a less desirable location, or continue to pay rent for an apartment.
 
Manufactured Homes Serve as a Perfect Starter Home
As gloomy as the housing market is right now, there are inexpensive, three-bedroom, two-bathroom homes available that are spacious and located in sought-after areas around the country. These manufactured home communities have amenities that you can’t get in many higher-priced, site-built starter homes:
  • Spacious Floor Plans. Homes have modern features, including kitchens with ample cabinet and countertop space, islands, and breakfast nooks. Master bedrooms, master bathrooms, and porches create bonus living space.
  • Community Amenities. These communities may have recreational amenities like outdoor pools, playgrounds, basketball courts, exercise rooms, and clubhouses that can be used by all residents of the community.
  • Desirable Locations. Manufactured home communities are often close to urban areas, making work commutes easy and ensuring that residents are near entertainment, dining, and shopping options. Some are in beautiful suburban areas near parks and recreational areas.  
Additionally, many manufactured home communities operate using the land-lease system, which means that residents buy their home but lease the land it’s sitting on. You’ll spend even less money on housing, and you can do what you’d like with your money since it isn’t tied up in your housing costs.
 
Many people prefer private, single-family homes to attached housing like apartments or condos. People who are looking for an affordable, spacious starter home in a great location have the option of living in a manufactured home community.
UMH Properties owns 98 manufactured home communities throughout seven states in the United States. These spacious, affordable homes include amenities that our residents love. Call or contact us to learn more.