Are Mobile Homes a Good Investment in 2021?

Are Mobile Homes a Good Investment in 2021?

Built in a factory and transported in pieces to the final site, prefabricated manufactured homes are among the most popular affordable housing options for new homebuyers in central Alabama and the surrounding area—and for good reasons. They are affordable. They are versatile. They can be constructed and wheeled up to the site pretty fast. They are energy-efficient and eco-friendly. There are probably 100 more reasons why manufactured homes have been a hot trend in the Alabama real estate market. 

That said, is their popularity intact in 2021? Are they still a safe investment? Let’s find out!   

Will manufactured homes thrive in 2021?  

In 2020, manufactured homes received significant demand and media attention. The trend seems to continue in 2021 as well. Here are a few reasons why manufactured homes will still be a popular housing option in Central Alabama and the surrounding area this year:

1. They are popular amongst workers with an average wage  

House ownership has been only an illusion for workers whose minimum wages constrain them. Considering the $809 per month rent for a one-bedroom apartment in Montgomery, AL, families with lower incomes have limited housing choices. On the other hand, the average monthly rent for manufactured homes in the US is about $550, making them a cheaper and attractive option for such families. 

2. Many retirees transition from traditional to manufactured homes   

There has been a surge in the population that is aging into retirement. In 2020, the 55-plus cohort grew by nearly 1.7 million people and, by 2025, as many as 7.6 million individuals will hit this milestone. Once retired, affordable manufactured homes remain a saving grace for most of them—they prefer purchasing manufactured homes in age-restricted communities. This rapidly increasing demand makes manufactured homes an even better investment. 

3. The demand for affordable housing is growing amongst lower-class families 

Lower-class families have continued to be under pressure financially. Sadly, this trend continues. Of course, these people cannot afford the high rents of conventional homes and apartments in Central Alabama and the surrounding area. As manufactured homes typically cost ⅓ of a single-family home, their demand amongst these people is skyrocketing. 

4. Rise in demands due to the global pandemic

Interestingly, manufactured homes are a better investment even during economic downturns. Since the COVID-19 came with a potential dollar collapse and the economy is still looking unstable, manufactured homes remain the only non-subsidized low-income housing option.  

The verdict

Manufactured homes have been and continue to be the best and the most affordable housing option in Alabama and around the US. Since their demand is ever-increasing, you can be confident that it will provide you with a higher return on investment. But before investing, be sure to do the math to ensure that it remains a cash flow rental property. 

Take help from Jaco Sales, LLC.

If you want to buy a manufactured home in Montgomery, AL, Jaco Sales, LLC. has got your back. Serving the people of central Alabama and the surrounding area for more than 15 years, we pride ourselves on offering the most affordable and high-quality manufactured homes. 

Want some assistance in purchasing a new manufactured home? Call us at (334) 283-1017 to learn more about our services.