U.S. home buyers making the nation’s median income and purchasing the typical U.S. home spend around 15% of their income on their monthly house payment…”
This makes, Fottrell suggests, owning twice as attractive as renting.
While one can split hairs on the ‘twice as affordable’ point, Numbeo says the following are the rental rates in the U.S..
| Rent Per Month |
Avg. |
| Apartment (1 bedroom) in City Centre |
$1,026.10 |
| Apartment (1 bedroom) Outside of Centre |
$774.13 $ |
| Apartment (3 bedrooms) in City Centre |
$1,736.96 |
| Apartment (3 bedrooms) Outside of Centre |
$1,307.89 |
The U.S. Census Bureau reports that in October 2014, the median price of a new house with land stood at Oct $305,000, including land.
By comparison, the Census Bureau reported that in July, 2014 single section manufactured housing sold for an average price of $42,100, multi-sectional for $78,400 for an average MH sales price of $63,700, each of these without land.
If you used the median price Sam Landy, UMH President suggested as the cost for an improved lot at $35,000 – and added $17,500 for a garage and other site improvements – a multi-sectional manufactured home and land could be purchased for a total of $130,900.
At 4.33%, Bankrate says the 30 year payment on a $125,000 loan amount would be $620.79. Of course tax and insurance escrow and other costs would have to be factored in. By contrast, using the same rate and term on a $280,000 loan amount, Bankrate’s mortgage calculator says would be $1390.58. Again, tax, insurance and other costs would have to be added.
The point is that the rental rates, cost of new housing – which currently dwarfs manufactured housing starts – compared to a modern manufactured home reflects strong potential advantages for the industry. ##
Free Related Downloads –
- U.S. Census Bureau conventional housing costs report.
- U.S. Census Bureau manufactured home costs report.
- U.S. Census Bureau manufactured home shipment report.
(Quentin Fottrell photo credit: CBS News/Linkedin)
