Manufactured housing, specifically mobile homes, remains one of the most affordable housing options in the U.S.—at about half the cost of a typical home. In one Arizona city, buyers are snapping these houses up at a rapid rate.
Mesa, AZ, has the highest manufactured housing inventory in the country, totaling approximately 29,300 mobile homes, according to a new study by Storage Cafe. That represents 13.1% of the city’s entire housing stock.
Mesa is the third-largest city in Arizona and frequently ranks as one of the top destinations for retirees.
“Mesa is part of the broader Phoenix metro area, which has experienced rising housing supply and moderating prices following the heightened demand of the [COVID-19] pandemic-era housing boom,” says Hannah Jones, senior economic research analyst at Realtor.com®.
“Manufactured houses are the norm here, and many of them are used as second homes for people who come for the sunny weather during the snowbird season,” Mesa manufactured housing broker Mindy Willert, of Dragonfly Homes by Mindy, tells Realtor.com.
Most of these manufactured houses are in 55-plus communities.
“People like these retirement communities because they are in their golden years,” Mesa real estate agent Tranatta Adeyanju, of The Primrose Team, tells Realtor.com. “They’re wanting to make new friends and to stay active, and they’re often downsizing and want to live on one floor.”
Willert says retirees are especially drawn to manufactured housing because the price is right.
“With housing prices rising, manufactured housing is the quick, attainable, affordable option,” she says.
There are currently about 60,000 mobile and manufactured homes on the market, with a median list price of approximately $150,000.
In contrast, the national median list price for a single-family home reached $415,000—meaning manufactured homes go for $265,000 less on average.
This stark contrast in cost comes as perceptions of manufactured housing are evolving.
“People used to feel like you couldn’t get something stable or safe, or that it was something you consider as a last resort—there was definitely a stigma,” says Adeyanju. “But as the cost of single-family housing has become out of reach for many people, they now see that mobile homes are affordable, good quality, with a lot of modern upgrades.”
Other top cities for manufactured housing
The manufactured housing market is booming across the country.
Rounding out the top five cities with the highest number of mobile homes are Phoenix (20,500); Jacksonville, FL (15,400), Largo, FL (14,100), and Tucson, AZ (14,100).
“The cities with the largest concentrations of manufactured housing tend to be more affordable and are largely located in the Sun Belt, where land costs are generally lower,” says Jones.
Florida real estate broker Jeff Lichtenstein, CEO of Echo Fine Properties, says that in Jacksonville and Largo, affordability is definitely what draws buyers to mobile homes.
“Forget location, location, location—it’s price, price, price,” he quips.
Retirees have traditionally driven mobile home purchases in the Sunshine State, because “they love the low maintenance, the simple lifestyle, and the sense of community,” Ron Myers of Ron Buys Florida Homes tells Realtor.com.
But that demographic is changing, according to Lichtenstein. “For the first time, we’re starting to see younger buyers enter into this space,” he says.
The remaining top 10 cities with the highest number of mobile homes include San Jose, CA (11,700), San Antonio, TX (11,200), Houston (11,000), Los Angeles (10,600), and Sunrise Manor, NV (10,000).
“Rapid population growth in these cities has increased demand for more attainable housing options,” says Jones.
Daniel Cabrera, owner and founder of Sell My House Fast SA, agrees.
“San Antonio has a lot of manufactured housing because they provide speedy and affordable ownership close to where people work,” he says. “Retirees and first-time buyers are the lead demographic here.”
Mobile homes get a makeover
Mobile homes constructed before 1976—before federal oversight existed—are not comparable to today’s manufactured homes, which meet rigorous modern construction, inspection, and financing requirements.
“There are so many more options available for funding now,” Willert says.
Today’s manufactured homes are built on a permanent steel chassis, according to federal HUD standards, and can be classified as real property when permanently attached to land owned by the homeowner.
Manufactured housing industry expert Glenn D. Esterson tells Realtor.com that one of the things that’s most appealing about manufactured housing is its “ability to appreciate in value.”
In fact, manufactured homes have appreciated almost as fast as site-built homes in the past 24 years, according to an Urban Institute analysis of FHFA data.