Why Are Modular Homes Crucial to the US Real Estate Market?
Why Are Modular Homes Crucial to the US Real Estate Market?

Why Are Modular Homes Crucial to the US Real Estate Market?

If you asked the average joe what kind of things are made in factories, chances are they’ll mention products like canned food or cars. But did you know some homes are made in factories as well? These are called manufactured homes because they’re created inside a factory before being transported to a location and assembled into a house!

The popularity of modular homes continues to skyrocket in the US in the wake of an overheating property market. But why are modular homes important to the country’s real estate market?

Let’s take a look at three of the biggest reasons why so many prospective buyers are opting for modular homes.

They Prevent First-time Buyers from Drowning in Debt

Imagine for a second that you’re a first-time homebuyer and you’re asked to pick between two houses. Both houses have the same number of bedrooms, bathrooms, and square footage. However, one’s old and expensive while the other one’s brand new. We’re willing to bet you’d pick option two in a heartbeat!

Unfortunately, countless first-time homebuyers sink their savings into cheap fixer-uppers every year because they can’t afford new homes. Many of these buyers take out mortgage loans to buy these homes—meaning they’re already saddled with debt before having to [JL1] spend even more on home maintenance.

Modular homes are the ideal solution to this problem. While regular homes are built by construction workers, modular homes are built inside factories using industrial machines. This means builders can save thousands of dollars a year in construction worker wages by opting to build modular homes. It’s no wonder modular homes are only half the price of regular homes!

They’re Raising the Standard of Living for People

Did you know over 37 million people in the country live below the poverty line? In other words, over a tenth of the population doesn’t earn enough to buy a home. It’s no wonder the United States is ranked a lowly 20th in the world for overall quality of life!

Fortunately, modular homes are helping an increasing number of Americans put a roof over their heads each year. In addition to being cheap, they’re built from scratch in factories using brand-new materials—which means every modular home is brand new. This makes them a far better housing option for low-income earners compared to alternatives like trailers that provide a lower standard of living.

It’s also becoming increasingly common for developers to import modular units from overseas before assembling them within the United States. In many cases, these imported units are cheaper and of higher quality than their local counterparts. While this doesn’t bode well for local modular home builders, it’s helping to raise the standard of living for low-income earners rapidly.

They Keep Up with the Pace at Which Demand for Housing is Growing

One of the biggest reasons why modular homes are crucial to the US real estate market is the immense demand for housing. Research shows that 84% of Americans prioritize buying their own homes—yet the supply of regular homes isn’t enough to match this demand. The solution? Modular homes.

Modular homes can be built anywhere in the country if they’re installed as per the US Department of Housing and Urban Development’s Manufactured Home Installation Program. While it takes longer to obtain approval for a modular home compared to a regular home, modular homes can be created, assembled, and installed within three months. In comparison, it takes up to seven months to build a regular home according to data from the US Census Bureau.

It also takes far less time to plan, build and assemble several modular homes into a neighborhood compared to regular homes. Unless you’re building homes inside a gated community with bi-laws on home designs, regular homes are almost always different from one another in a neighborhood. In comparison, most people who buy modular homes prioritize convenience and cost over design—which means they’re less likely to mind living in identical-looking homes that are built quickly!

Are you ready to join the modular home revolution gripping the nation? If so, reach out to Atlantic Home Capital for financial assistance!

They’re a licensed mortgage lender that specializes in providing modular mortgage loans in New York. Their team has earned countless positive testimonials for their services and will help you land mortgage loans at the most affordable rates on the market. Whether you’re looking to build your asset portfolio through investment property loans or you’re looking to refinance your old mortgage toward a new one, Atlantic Home Capital can help.

Message them today to find out what makes them a top New York home mortgage lender!

About The Author

Sally A. oversees modular home projects at the National Association of Home Builders. She has researched modular home designs for 7 years and advises the US Department of Housing and Urban Development on manufactured home installations. In her spare time, Sally offers advice on how to build long-term wealth through modular home investments.

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