Modular Homes vs. Mobile Homes: Unveiling the Truth About Depreciation

When it comes to choosing a home, many people are considering alternatives to traditional stick-built houses. Two popular options are modular homes and mobile homes. However, a common concern among potential buyers is the issue of depreciation. Do modular homes depreciate like mobile homes? This article aims to unveil the truth about depreciation in these types of homes.

What is Depreciation?

Depreciation refers to the decrease in value of an asset over time. In real estate, this is often due to factors such as wear and tear, age, or changes in market conditions. However, not all homes depreciate at the same rate or in the same way.

Depreciation in Mobile Homes

Mobile homes, also known as manufactured homes, are built in a factory and then transported to their intended location. They are typically placed on a rented lot and are not permanently affixed to the land. This is one of the main reasons why mobile homes tend to depreciate over time. Since they are not considered real property, they are treated more like vehicles in terms of depreciation. The moment a new mobile home leaves the factory, it begins to lose value. Over time, this depreciation can be significant.

Depreciation in Modular Homes

Modular homes, on the other hand, are also built in a factory but are then transported to their location in sections and assembled on a permanent foundation. This makes them more similar to traditional stick-built homes. In fact, once a modular home is installed on its foundation, it is virtually indistinguishable from a stick-built home in terms of appearance and quality.

Because modular homes are considered real property, they do not depreciate in the same way as mobile homes. Instead, they can actually appreciate in value over time, just like a traditional home. Factors such as the quality of construction, the condition of the home, and the location can all influence the rate of appreciation.


In conclusion, while both mobile homes and modular homes offer affordable and flexible housing options, they differ significantly in terms of depreciation. Mobile homes tend to depreciate over time, while modular homes can appreciate in value. Therefore, if you’re considering these types of homes and are concerned about depreciation, a modular home may be a better investment in the long run.

However, it’s important to remember that many factors can influence the value of a home, including market conditions, the condition of the home, and the location. Therefore, it’s always a good idea to do your research and consult with a real estate professional before making a decision.