In recent years, many Americans have sought alternative methods to accomplish one of their biggest dreams — homeownership. Julie Johnson, a 24-year-old woman from central North Carolina, exemplifies this trend with her unique house-hunting journey. Instead of the traditional avenues typically pursued, such as real estate agents or conventional listings, Julie and her husband decided to scour Facebook Marketplace for their ideal home. This unconventional choice led them to purchase a second-hand manufactured home, a decision that has become increasingly popular in the context of the ongoing housing crisis across the United States.
Their search culminated in a rather remarkable experience: within a short period of one month and with an investment of $52,000, their pre-owned 2,200 square-foot home with four bedrooms and two bathrooms was delivered in two separate pieces on a truck. Manufactured homes, often referred to as mobile homes, are prefabricated structures that are crafted in factories before being transported to their locations. This trend has seen a notable surge in interest due to the mounting challenges in the United States housing market, which is causing home ownership to slip out of reach for many individuals.
The driving forces behind this movement include escalated mortgage rates, a persistent shortage of available homes, and rising property prices. As reported by a recent CNN poll conducted in September, about a quarter of likely voters renting their homes indicated that housing costs are their foremost economic concern. The median price for existing homes hit a staggering $404,500, marking a continuous 15-month streak of year-over-year price increases, showcasing the tight grip of the housing market crisis.
Many Americans are refusing to wait for government interventions, such as the economic strategies proposed by then-President-elect Donald Trump, aimed at making housing more affordable. Instead, they are seeking solutions online, exploring lower-cost alternatives including pop-up foldable houses, tiny homes, and traditional mobile homes. Currently, approximately 6% of the housing stock in the U.S. consists of manufactured homes, predominantly residing in rural areas. Reports indicate that by September 2024, over 77,000 new manufactured homes had been shipped, indicating a significant 16% increase compared to the previous year.
The trend extends to various online platforms as young people search for affordable housing alternatives. On social media sites like TikTok and YouTube, manufactured homes have gained viral attention. Notably, Amazon has emerged as a supplier, offering various options such as a foldable home priced under $25,000 and multistorey homes constructed from recycled shipping containers available for $29,000. Unfortunately, Amazon has yet to respond to inquiries regarding their manufactured home inventory.
The concept of retail selling of manufactured homes is not entirely novel; over a century ago, the Sears, Roebuck and Company pioneered this approach by offering kit homes through their catalog, some priced below $1,000. These homes were sold as pre-cut lumber and packaged materials, creating DIY construction opportunities for buyers. Over a span of 32 years, Sears successfully sold approximately 75,000 homes before the advent of modern regulatory frameworks.
However, the road to acquiring a manufactured home isn’t as straightforward as it might seem. Marc Norman, an associate dean at NYU’s Schack Institute of Real Estate, highlights the importance of zoning laws, which have evolved significantly since the days of Sears. Nowadays, prospective homeowners must ensure their manufactured homes align with local zoning regulations, which can vary widely even within different sections of the same town. Many jurisdictions have strict rules governing the types of homes permissible for construction, with some areas outright banning them.
Julie and her husband faced challenges beyond the purchase itself. Costly expenses such as $10,000 to build a brick foundation, as mandated in their locality, alongside installation of a septic tank and water well, consumed their finances. They struggled to meet local codes and requirements, facing setbacks along the way, such as a failed inspection that necessitated hiring a structural engineer.
Despite these hurdles, they found success in their unique path to homeownership, culminating in Johnson sharing her journey on TikTok. Her videos have resonated with millions and provide an intimate look into owning a pre-owned manufactured home, effectively inspiring others to explore similar avenues. The need for affordable housing remains a pressing issue, and while manufactured homes may offer some relief, the surrounding regulatory environment and rising land costs necessitate broader discussions about the future of affordable housing in America. Johnson’s experiences serve as a reminder that innovative solutions can emerge, even in challenging economic climates, as the pursuit of homeownership remains a central aspiration for many.
