The rising cost of homes coupled with high interest rates are pushing many homebuyers out of today’s market. At the same time, people are fatigued by rent increases, which often times can be as high as (or higher than) a monthly mortgage. Because of the current conditions, manufactured homes are gaining in popularity as an option for homeownership, especially for first-time buyers. Here’s how manufactured homes compare to other housing!
| Manufactured Home | Condo/Townhome | Single Family House | Rent | |
|---|---|---|---|---|
| Ownership | Yes | Yes | Yes | No |
| Equity | Yes | Yes | Yes | No |
| HOA Fee/Rent | HOA Fee or Land Lease | HOA Fee | Uncommon HOA Fee | Rent |
| Common Walls | No | Sometimes | No | Sometimes |
| Repairs/Maintenance | Fully Responsible | Interior | Fully Responsible | No |
| Laundry In-Unit | Yes | Sometimes | Yes | Sometimes |
| Pets | Yes | Yes | Yes | Not Always |
Let’s break down the nuances.
Ownership: All forms of housing except renting give you ownership of the home. It’s yours to live in, rent out, and pass down to your heirs. Owners of houses and manufactured homes entirely own the exterior and interior of their homes, and are allowed to do what they wish with both spaces. Meanwhile, owners of condos and townhomes entirely own only the interior. The exterior, common walls, and outside amenities are considered shared ownership and changes to these spaces are subject to HOA regulation.
Equity: Your ownership is directly tied to your equity in the property. This is how much you’ve paid down on your mortgage. As you pay off more of your principal balance, you own more equity in your home. Your equity may also be increased by the home’s appreciation value. Since renters do not own any part of their living space, they do not have equity or the chance to build more equity.
Homeowners Association Fee/Rent: Renters will always pay a monthly rent. Most single-family houses do not come with HOA fees; however, if a single-family home resides in a gated community with common spaces, there may be a HOA fee. Manufactured homes, condos, and townhomes are subject to additional monthly fees, in addition to—and after paying off—your mortgage. Condos and townhomes will always have an HOA fee since there are common-owned areas. Some manufactured homes can have HOA fees. Manufactured homes in privately owned communities, or land lease communities, will have a land lease/rent fee for the space the home rests on. There are also very rare instances that a condo or a single – family house will also be on leased land.
Common Walls: The nice thing about manufactured homes and single-family houses is you don’t share any walls with your neighbors. In condos and townhomes they may, and apartments you do. Common walls can leave you too close for comfort to your neighbors, and may create challenges when you need repairs to the home.
Repairs/Maintenance: Common walls or lack thereof plays a role in who’s responsible for repairs and maintenance. Manufactured home and single-family homeowners have full responsibility for the exterior the home, as well as all repairs. Condos have shared ownership of common areas including the exterior of the building and common walls, which limits your ability to perform some repairs or maintenance without the Homeowners Association. On that same note, if you own a condo and something falls within the HOA’s scope of responsibility, such as replacing the roof, it won’t come out of your pocket. Renters do not have power or responsibility to perform repairs or maintenance to the building and its systems.
Laundry In-Unit: Some condos and townhomes don’t have the benefit of in-unit laundry, and may instead have community laundry rooms with specific hours of operation. The same goes for apartments, where in-unit laundry may be even less common than condos. Meanwhile, every manufactured home has hookups for laundry appliances, just like a single-family house, so you can do your chores at your convenience.
Pets: California law states every homeowner has the right to own one pet. When you own a single-family house, there are no restrictions on pets because you don’t answer to an HOA or landlord. However, condos, townhomes, and manufactured homes in communities may have pet policies with restrictions on more than one pet, the size or weight, or by breed. Some rental landlords flat-out do not allow tenants to have pets.