Economics of Single Family Alternatives
“If single-family homes are feeling out of reach, there are alternatives,” says Hannah Jones, an economic data analyst at realtor.com. “Other home types, such as condos and mobile homes, could offer another good opportunity for homeownership that’s more within budget.”
“When you own a home, no matter what type that is, you’re able to build up equity, which increases your wealth,” says realtor.com Chief Economist Danielle Hale. “If these other types of homes—which are generally more affordable than single-family homes—can help you get your foot in the door and start the process of building wealth for yourself, then they’re worth considering.”
Here’s one surprise: While single-family homes might be on the top of many buyers’ wish lists, they don’t appreciate as much as mobile homes. The average house was worth 13.3% more in April than just a year ago. Meanwhile, the value of mobile homes shot up 30.4% over the same period. Condos and townhomes saw 20.8% appreciation.
And single-family homes don’t have nearly the same level of income-generating potential as multi-family homes, where owners can live in one unit and rent out the other ones. (Multifamily homes are buildings or complexes with two or more units.)
Source: Clare Trapasso, www.realtor.com
Are you considering selling and/or purchasing a home in Bucks, Montgomery, Delaware, Mercer, Burlington or Philadelphia? More than ever, you need expert, professional representation. Before you consider making a move, call The John McClintock Team at 267‑759‑9518 for no obligation recommendations on dealing with bids, realistic prices and precise timing to suit your needs.