The Rise in Rent Prices
In a recent article published by the Wall Street Journal, it was reported that rent prices are decreasing for the wealthy while rising for the rest of the population. To understand this trend, we turn to real estate expert Mitch Roschelle for insights.
Supply and Demand Factors
Roschelle explains that the surge in high-end homes in major cities has caused land and construction costs to skyrocket. Consequently, asking prices for condominiums or rental units have become exorbitantly high, reaching a ceiling that tenants are willing to pay. However, for the rest of America, the situation is quite different. Rent prices continue to increase steadily.
The Appeal of Mobile Homes
Amidst rising rent prices, Mitch Roschelle suggests that younger families may find a solution in mobile homes. He dispels the stigma associated with manufactured housing and highlights its affordability. For a fraction of the cost of a new home, young families can purchase a brand new, 2,000 square foot double wide mobile home. These homes are situated in modern communities with excellent amenities. Roschelle argues that the country is facing a housing crisis, particularly in the workforce housing segment, and mobile homes offer a viable solution.
Overcoming the Stigma
Roschelle acknowledges the existing stigma surrounding trailer parks and emphasizes that manufactured homes can be placed anywhere, not just in designated parks. For example, if you have a farm, you can easily position a mobile home in the woods. The affordability of these homes makes them an attractive option for those seeking to build a home on a budget. While hooking up utilities may present a challenge when placing a mobile home on private property, it is not impossible and can be achieved with proper planning.
The Rising Popularity of Manufactured Homes
Roschelle states that the sale of manufactured homes is increasing primarily due to the expansion of communities offering these housing options. However, he also acknowledges that individuals are purchasing entirely manufactured homes and placing them on their own lots as an alternative to traditional home building. By doing so, they can save a significant amount of money compared to the cost of constructing a new home.
The Future of Housing
The current trends in rent prices and the growing interest in mobile homes indicate a shift in the housing market. While high-end properties may see a decline in demand, the demand for affordable housing solutions, such as manufactured homes, is on the rise. As the housing crisis continues to unfold, it is crucial to explore all available options to ensure that everyone has access to safe and affordable housing.