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The Changing Mobilehome Park and Mobilehomes

On Behalf of | Aug 11, 2014 | Mobile Home Parks/Manufactured Homes |

The changing landscape of mobilehome parks and mobilehomes was clearly discussed in The Wall Street Journal article entitled “Million Dollar Homes – Mobile-home communities are attracting a new, wealthier buyer as prices sour in prime locations”.

Location seems to be the key element as exemplified in the Article by referencing Paradise Cove Mobilehome Park located in Malibu, California. Examples of  2014 sales for a mobilehome/trailer only were provided in the article: 1800 square-foot trailer sold for $1.25 million, trailer (square feet not provided) sold for $2.25 million; and a 2,200 square-foot trailer sold for $3.75 million. These prices are for the right to the rent a space on which the trailer/mobilehome is located.

The changing landscape of mobilehome parks and mobilehomes is attributed to high-end buyers. The focus points for these buyers are locations such as (1) beach front for recreation, beauty, and close to services; (2) crowded areas with high home/rent prices such as San Jose and Silicon Valley which are attracting the high-end worker and (3) down sizing by retirees and workers who want the amenities to which they were accustomed.

While the sale prices (compared to other housing in the area) for mobilehomes is lower, the interest rate is higher for mortgages. The total monthly housing costs includes both the cost of the mobilehome with the monthly mortgage payment, and the rent and incidental charges for the space upon which the mobilehome is located.

To review the Wall Street Journal Article: http://online.wsj.com/news/ (August 8, 2014).

The Loftin Firm, P.C. offers a full range of services for the mobilehome industry.