[New Tang Dynasty News, Beijing time, October 14, 2024]As housing prices soar in the United States, cheap mobile homes have become the choice of more and more people. On Amazon, the cheapest mobile home costs just $10,000. Even Musk, the world’s richest man, sold his mansion and moved into a mobile home in Texas worth $50,000.
According to the Federal Housing Finance Agency, U.S. home prices rose 5.7% in the second quarter of 2014 compared with the same period last year. According to the home selling website “Zillow”, the average home price in the United States this year is $359,892.
After more than two years of rising real estate prices, mortgage rates, and rents, America’s housing affordability crisis is more apparent than ever. Policymakers, economic experts and ordinary American households have been looking for tools to ease housing cost pressures. Mobile homes are one possible solution.
Mobile homes are cheap
Mobile homes are usually prefabricated in a factory and then shipped to their final destination. Because these homes tend to have simple designs and materials that make them more efficient to produce, they are often much cheaper than site-built homes. A 2023 report from the Manufactured Home Institute found that the average cost per square foot of a manufactured home is $87, about half the $166 per square foot cost of a site-built home.
On Amazon, a mobile home can cost as little as $9,999. The house is single-story and has no bathroom.
Another, more luxurious mobile home costs $44,999. It is a double storey with bathroom, kitchen and balcony, and looks very warm and comfortable.
A mobile home listed on Amazon for $44,999. (Screenshot of Amazon website)
The average sales price of a mobile home in 2023 is $124,300. For low- and moderate-income families, this more affordable option has great appeal. Currently, 21.2 million Americans live in manufactured homes, which account for approximately one in 10 new homes built in the United States each year.
Mobile homes are convenient
The benefits of buying a mobile home are not just the low price, but also the convenience. This makes mobile homes a popular choice for seniors aged 55 and older. Factors such as low maintenance, affordability and community lifestyle make it ideal for empty nesters looking to downsize.
These mobile homes are often clustered in land-rental communities. The buyer owns the home but not the land on which it sits. In addition to their monthly mortgage payments, they also pay monthly lot rent.
Land lease fees typically cover lawn care, water, sewer, and additional costs for use of community amenities such as pools and sports courts. Lot rental amounts vary based on location, community size and cost range. These fees may increase over time. National data show average land rents rose about 7.1% from the same period last year.
Distribution of mobile homes in various states
The popularity of mobile homes varies across the United States, but the South stands out for its love of mobile homes. Fast-growing, populous Southern states such as Texas and Florida top the list for total manufactured home shipments. But the top regions among all new single-family homes include low-income states like Mississippi, Kentucky and Louisiana, where residents may prefer manufactured homes because they are an affordable option. Alabama ranked highly in both categories. It ranks third in total manufactured housing shipments and fourth in manufactured housing’s share of all new single-family homes.
Mobile home shipments rose to an annual average of 123,000 units in March 2022, more than doubling in a decade. Since then, mobile home shipments have declined as mortgage rates have risen and inflation has persisted.
The choice of the world’s richest man
Mobile homes are not just an option for poor people, but even for the richest man in the world.
Musk, the CEO of SpaceX and Tesla, owns a $45,000 mobile home in South Texas. Musk is currently worth $245.8 billion.
Before moving into a tiny house, Musk owned several luxurious mansions. However, in May 2020, he made a drastic shift and sold all his possessions, including his home, to embrace a more minimalist lifestyle. After settling in Texas, he chose a prefabricated tiny house in Boxabl.
Contrary to ordinary people who buy mobile homes out of financial considerations, Musk chooses mobile homes out of higher spiritual pursuits. The tech mogul said this is a conscious effort to reduce his carbon footprint and is in line with his overall goal of advancing human colonization of Mars through SpaceX. While somewhat unconventional for someone with vast wealth, Musk finds this minimalist lifestyle “awesome.”
Thanks to a modular construction method, Elon Musk’s tiny house took just an hour to assemble. Unlike traditional home construction, which can be affected by harsh weather conditions, modular homes are built in a controlled factory environment, ensuring efficiency and quality. The modules are then shipped to designated locations and quickly assembled by certified installers. This streamlined process significantly reduces the time it takes to turn your dreams into reality.
Transitioning from luxury living to mobile home living is a unique experience that brings both benefits and challenges. Since space is limited, you may need to reduce your possessions, just like Musk. It requires you to reduce your material desires and embrace a more simple and earthy lifestyle.
(Reported by reporter Guan Yue/Editor in charge: Lin Qing)
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