I was at a celebration in a successful park last week. There was a tent that covered the audience, who sat in folding metal chairs. It was hot, but not too hot. We had sheet cake. Grown men held up a small marble trophy and spoke about meaning and purpose. It was a good day.
Afterwards, I spoke with a legislator who was attending the event. She was new to manufactured housing. Roughly paraphrasing her words, she said “I always think of manufactured housing as something to be avoided, people losing their equity and not having good quality homes. This is not like that.”
On this day, she saw Parrish Manor. She saw mobile homes that were outfitted with heat pumps, on manicured lots with sidewalks, street lamps, paved asphalt streetscapes with valley curbs and signage designed for safety. It changed her mind.
But not everyone gets out to visit a good park. Without exposure to these kinds of examples, what is left? Well, a lot of voices will say some of the same comments that this representative was making prior to her epiphany.
I hear people saying that “mobile homes don’t appreciate.” Well, perhaps they do not, but perhaps they do. I would argue that they can. Certainly, those mobile home owners who received $1 million for each of their lots in Florida last year managed to get some equity. For many, it is just the opposite — they are under water. There are all kinds of experiences for residents of mobile homes. The point is, the financial outcomes are hardly homogenous and for the most part are tied up in a number of dependent factors, such as neighborhood quality, location, proximity to jobs or schools, and infrastructure.
It is just as relevant, though, to gauge the suitability of manufactured housing by comparing how they would be if, alternatively, they were renting a home. Of course, there would be no appreciation at all in a rental unit.
It is a favorable comparison. Any equity that a resident of manufactured housing retains is icing on the cake, by comparison.
It is also relevant. The residents at Homestead Village, which this column has featured in recent weeks, would most likely find their next home in an apartment if they had been forced out. If they had to go rent, a 2 bedroom apartment in Raleigh begins at $500. A lot of people in singlewides, if they had to choose a different mode of home residence, would go into an apartment.
In the Triangle, mobile homes are either cheaper or comparable in price to apartments. The difference is slight, but nonetheless it is apparent. More than half (51.3 percent) of mobile home renters pay below 30 percent of their income on rent. By contrast, only 48 percent of renters in large (more than 20 units) multifamily buildings pay below 30 percent of income. (American Community Survey, 2006, table C25073). When you look at people paying an especially high burden, people in large multifamily apartment buildings are even more likely to be struggling. About 45 percent of those renters in Wake County pay more than 35 percent of their income on rent, compared to just 36.8 percent of mobile home residents.