Mobile homes, or manufactured housing, have long provided shelter to low-income families in the U.S. The quality of these housing units has substantially improved since 1976 when HUD implemented industry manufacturing standards. In the midst of a rental housing crisis, mobile homes may look like a good alternative for low-income renters. But mobile homes can come with substantial hidden costs, depending on who owns the land where they are placed and how their purchase is financed.
Mobile homes are a type of manufactured housing, which means they are built in a factory and transported to a site, rather than being "stick-built" on the site itself. What makes a unit a mobile home is that it is built on a chassis. However, once installed at a site, most of these units are not really mobile. It can cost thousands of dollars to move them, and the owner risks damage to the unit during the move.
Is living in a mobile home, less expensive than conventional rentals or homeownership?
At first glance, the answer is yes. A recent study by Durst & Sullivan looked at mobile home affordability, where these units are located, and what kinds of households live in them.
The study notes, there are approximately 7 million occupied mobile homes in the United States, about 6% of the occupied housing stock. Mobile homes can be found throughout urban and rural America, but they still remain more common in rural areas. More than half of all manufactured housing (54%) is found in non-metropolitan areas. Half of all manufactured housing is located in the southeastern states.The study divides mobile home occupants into those who rent the unit and the land on which it is sited, those who own the unit but rent the land, and those who own both the unit and the land. In all cases, households living in mobile homes on average had lower monthly housing costs than those living in apartments or owning their homes. However, how much households saved on housing depended on what type of arrangement they were living in.
Using the American Housing Survey data, the study found that conventional homeowners had average monthly housing costs of $1,300 and conventional renters had average monthly costs of $1,000. In contrast, mobile home renters had average monthly costs of $700, mobile homeowners who rent their site paid $670 and households that owned their mobile home and the land paid $530.
We can also look at the housing cost burden to see if mobile homes are a more affordable option for low-income households. The federal government defines cost burden as paying more than 30% of monthly income for rent (or mortgage) and utilities. Families that pay more than 30% of their income for housing have little left over for other necessities like food, clothes or medical care.