Appreciate in Value
Many people believe that manufactured homes will never rise in value. In fact, some people say manufactured homes depreciate over time. A manufactured home is just like any other home. When it's properly built and maintained, manufactured homes appreciate just like site-built homes. But, as with all housing, the value of a manufactured home depends on a variety of market factors such as:
- the local housing market
- the local community
- the initial price of the home
- the age of the home
- the overall condition of the home
- the location of the home [source: ManufacturedHousing.org]
In addition, studies have shown that manufactured housing has little impact on property values. In 1993, researchers at the University of Michigan concluded that manufactured homes did not impact property values of site-built homes in adjacent neighborhoods [source: ManufacturedHousing.org].
Many people, including Warren Buffett, one of the richest men in the world, think manufactured homes are a good investment. In 2003, Buffet and his company, Berkshire Hathaway, plunked down $1.7 billion to buy Clayton Homes Inc., a manufactured-housing company based in Knoxville, Tenn. In his annual letter to investors in 2011, Buffett said his company should serve as a model for those in the government who want to reform the nation's housing system [source: Howley].