Do Modular Homes Depreciate Like Mobile Homes?

Consumers often mistakenly use the terms modular and mobile homes interchangeably.

The element of depreciation is common with mobile homes. But do modular homes depreciate like mobile homes?

Modular homes don’t depreciate as mobile homes do. Instead, their value can hold on or increase with time as long as the home is in perfect shape.

Modular homes, though, are a good investment since they are affordable, energy-efficient, and easy to set up.

Although modular homes are prefabricated, they come with a firm foundation. Hence, they can withstand natural disasters such as windstorms and earthquakes.

In this article, you will learn more about modular homes and whether they depreciate like mobile homes.

Do Modular Homes Depreciate Like Mobile Homes?

How well do modular homes hold their value?

Both modular and mobile homes are prefabricated in a factory setting and transported to the site for installation. Both types of homes are designed to be a cheap way of owning a home.

The value of mobile homes is known to plummet as time goes by. With modular homes, though, the value changes not. However, it may increase just like site-built homes.

One particular element that increases the value of these homes is customization.

The homes are usually assembled at the site and customized according to the homeowner’s taste. This significantly improves a modular home, hence increasing value.

It’s, however, vital to choose a good location for installation and maintain the home well.

Even more, ensure that you stick the house on a solid foundation. All these factors increase the value of a home, and you can sell it at a higher price. If neglected, modular homes lose their value.

By maintaining your modular home regularly, its value improves by 1%. That could be adding a new coat of paint, a bad roof, plumbing, electrical, or heating system maintenance. E

ven minor maintenance to your home adds considerable value.

What are the Advantages of Modular Homes?

Modular homes are a big thing today, much as it was back in the day in the 20th Century. The primary benefits hinge around affordability and economies of scale.

1. Energy-efficient

Generally, one of the biggest challenges with traditional site-built homes is the enormous amounts of energy involved in the construction and use. These homes, however, increase the efficiency of energy.

They are built with an eco-friendly design, incorporating energy-efficient windows, insulation, skylights, water heaters, plumbing fixtures, among others.

Some homes come with customized features like solar panels and geothermal heating systems.

The energy burden is significantly reduced with fewer features and functions. This means that you will save more on energy in a year.

2. Customization

It’s easy to customize modular homes. It’s possible to design this home to your taste. Modular home companies are now incorporating in-house designs that employ Computer-Aided Design technology. 

The customization features give homeowners control over home security, door locks, and lighting, among others.

3. Easy Setup

It may take considerable time to build traditional site-built homes – about seven months or more. Modular homes are designed for effortless and speedy installation.

Once the finished sections or parts of the home are transported to the building site, the only remaining work is to assemble these sections.

It could take only a few weeks to complete the construction process.

4. Affordability

Though modular homes are considerably affordable, their quality isn’t compromised. In fact, they are built the same way as traditional on-site homes.

What’s the difference, therefore? Modular homes are constructed in a warehouse. This takes place prior to transporting the segments to the assembling site.  

5. Modular Homes Can Withstand Extreme Weather Conditions

Modular homes are permanent structures that must meet federal safety standards. The homes must display excellent design and construction.

Also, modular homes should be fire-resistant, durable, and strong to resist natural disasters like windstorms.

They are built from a warehouse, but they are stuck on a firm foundation during assemblage.

What are the Disadvantages of Modular Homes?

Do modular homes lose value over time?
  1. Modular homes may come with suspect quality, which isn’t something you want to experience when buying such a home.
  2. Lenders may not fund modular home projects. Luckily some manufacturers do provide financing and lending programs.
  3. You need a large patch of land, and modular homes are restricted in some areas.
  4. People still have mixed feelings and perceptions over modular homes.


1. Are modular homes worth the investment?

Modular homes are worth the investment as they are cheap and high-quality. They also appreciate value as time passes.

Only ensure that you build them in an excellent location and maintain them in the proper condition. 

2. How long do modular homes last?

Modular homes could last as long as site-built homes do if the setup is correctly done. Regular maintenance also increases the longevity of these homes.

Even so, install them on good land with fewer problems of extreme weather conditions.

3. Are modular homes of poor quality?

Back in the day, there were fears that modular homes were just an improved version of mobile homes. Poor quality features characterized them. Hence, they did not last long.

However, that’s an outdated perception. Modular homes of the present age boast the quality standards of a regular home.

Final Thoughts

Generally, modular homes don’t depreciate like mobile homes. The modern-age modular homes are durable, strong, and of high quality, as they must meet the federal safety standards.

If well installed and maintained, their value can rise significantly with time.

Nonetheless, you must choose a good location for them if you want to scoop good profits from its resale in the future. Make sure to get these aspects right and you will be good to go. 

Don’t forget, though, that modular homes aren’t the same as mobile homes and are the easiest route to owning your first home ever.

Similar Posts