When the housing bubble recently burst, many people were forced out of their homes due to foreclosure. Many turned to manufactured homes to buy or rent and investors soon realized that using manufactured homes as real estate investments was a good idea.

While in the past traditional homes saw their values increase, and manufactured homes decreased, the housing crisis has changed that. Many houses lost value while many manufactured homes retained their value.

Since 1976 when construction and safety standards were implemented by the federal government a well maintained manufactured home’s life was extended to meet the maximum loan life of 25 years.

Requiring less land, manufactured homes as real estate investments became a more attractive alternative. Additionally, manufactured homes became more accepted than in the past with vast improvements in quality and design.

The stigma of manufactured homes was relieved by the removal of wheels from what are commonly called mobile homes and the education of the public about manufactured homes and pre-fabricated or modular homes. As public perception changed, the use of manufactured homes as real estate investments increased.

Most modular homes are fabricated in a controlled environment and must meet stringent inspections before they can be transferred in modular form to the building site. Typically, they are built much stronger so they can withstand the transport.

For example, most homes built on-site are constructed of 2” by 4” lumber for wall studs. In a modular home, 2” by 6” wall studs are used for added strength making the home stronger.

Additionally, materials for on-site construction remain outside exposed to the elements during construction while materials for a manufactured home are inside during the construction phase.

Persons who own manufactured homes as real estate investments are more likely to address any maintenance issues as soon as they are made known in order to protect their investment. Initial investments are also lower for manufactured homes than that required for traditional homes.