MW I'm 35 and the only house I can afford is a mobile home. Is it a bad idea to buy one?

By Aditi Shrikant

'I know there is a stigma of living in a trailer park'

"Both rent and home ownership have reached crushing prices in my state." (Photo subject is a model.)

Dear Dollar Signs,

When browsing Zillow (Z) in my area (Southern California), I have noticed a plethora of seemingly affordable, relatively spacious mobile homes all over the region.

I know there is a stigma of living in a trailer park, but with ample square footage and low list prices, I'm highly considering this lifestyle, as both rent and home ownership have reached crushing prices in my state.

What is there to know about "manufactured homes"? For example, I found a three-bedroom, two-bathroom mobile home near the beach listed at only $260,000. The nearest similarly spaced home to that one is listed at $1.85 million.

There has to be a catch. What do I need to watch out for in evaluating the pros/cons of mobile-home ownership? At age 35, I don't know that much about buying a place to live.

Homeowner Hopeful

If you're just starting out on your money or career journey and have questions about how to navigate your finances, we want to hear from you. Write to Dollar Signs, MarketWatch's new advice column, at dollarsigns@marketwatch.com.

Dear Homeowner,

I so want there to be no catch but, unfortunately, there are many.

One of the most appealing benefits of homeownership is that your property goes up in value. With mobile or manufactured homes, this isn't always the case. Mainly because if you buy a typical home, also called a site-built home, you own the land along with the structure. With a mobile home, you own the structure itself, but still have to pay rent on the land. As you probably know, real estate is all about location, which means it's usually the land, not the home, that goes up in value.

I want to clarify that the difference between a mobile and manufactured home is that the latter was built after 1976 and had to adhere to U.S. Department of Housing and Urban Development standards, meaning manufactured homes are likely more structurally sound.

The pros of owning a mobile home are pretty much what you listed: They are affordable during a time of increasing unaffordability. But the cons may outweigh the short-term satisfaction of owning a home.

"Buyers [of mobile homes] should be aware that financing options can be more limited, resale values may be weaker and ongoing land or lot rent costs can add up, making it important to carefully weigh the long-term trade-offs," says Hannah Jones, a senior economist at Realtor.com.

What you'll get

Your struggle is increasingly common as home prices continue to soar. In California, home prices increased 62% during the last 20 years, according to data from the U.S. Federal Housing Finance Agency. In November 2015, the median home price in Los Angeles was $457,870, according to the California Association of Realtors. This November, though, the median home price was $942,610.

While manufactured homes have drawbacks, buying one will technically fulfill your desire to be a homeowner, which isn't nothing.

Margaret Garemore, a real-estate agent in Southern California - who, therefore, obviously has a vested interest in this issue - says that sometimes these homes can be a "hidden gem" for potential buyers. The bottom line is "you're still getting a home for under $300,000," she says.

Her clients who have opted for a mobile or manufactured home have seen great returns, she adds: "All of the mobile homes I've sold in the last 20 years, I've had people get 100% appreciation."

I would take this with a grain of salt; your mobile home may or may not increase in value by 100% over the next two decades. Other experts say that mobile and manufactured homes depreciate over time, especially if they are located on rented land.

However, some data show that mobile homes and site-built homes are appreciating at the same rate. Over the last 24 years, site-built home prices have appreciated by almost 213% while manufactured-home prices have appreciated by nearly 212%, according to data from the Federal Housing Finance Agency.

The obstacles

To buy a mobile home in the price range of the one you're referencing, you'll need enough money for the down payment, closing costs and land rent.

"If you don't have $25,000, it's going to be really hard to [purchase this home]," Garemore says.

Lenders don't offer conventional loans for manufactured homes because structures that aren't affixed to land are considered personal property, not real estate. That means getting a traditional mortgage is not an option if your home is on wheels and you don't own the land beneath it.

Another consideration is the type of community you'd be entering. Almost 65% of mobile-home owners are 40 years or older, according to data from the Consumer Financial Protection Bureau. It's likely that many of your neighbors will not be in your age cohort.

"Go to the park and walk it," Garemore says. "Look at the people, look at the cars, go into the clubhouse, talk to people." This can give you a window into the lifestyle you'd be adopting.

Like I said, I understand that homeownership is expensive and, in the short term, owning a mobile home can be quite appealing. When I first read your question I thought, "Oh, this could be a kind of whimsical loophole."

In the long term, though, you may end up regretting the purchase.

Write to Dollar Signs at dollarsigns@marketwatch.com.

-Aditi Shrikant

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December 31, 2025 07:38 ET (12:38 GMT)

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