With the Median Price for homes in Santa Cruz County hitting its second highest mark in over 2 years last month and national news citing our local rental market as the most expensive in the country, some people are taking a look at mobile homes as an increasingly viable housing option.
Once referred to just as trailer parks, our local mobile home communities have come a long way from their humble beginnings to present day, where prices in some cases are starting to wander up into the realm of seven digits. January saw the highest selling price ever for a residence at a mobile home park in Santa Cruz County was a sprawling 4 Bedroom, 3 Bath home with an attached 2-car garage at Montevalle in Scotts Valley closed at $1,325,000, which was above our reported Median price that month for Single Family Residences—also likely a first.
To be fair, it was a stick-built home on a concrete perimeter foundation, but it isn’t just stick-builts that are breaking the barrier, and this could become increasingly commonplace. In fact, with multiple modular and mobile homes now selling for over the million-dollar mark at Brookvale Terrace in Capitola, that community has recently gained the distinction of being referred to by some as the new Millionaire’s Row.
There are several variables that come into play when assessing the viability and value of a mobile home, including whether the home is in an all-age park, versus a 55 and older or 65 and older community. Other factors, such as the age of the home and whether it is a mobile or modular home can impact the available financing options which directly affects its value on the market.
The quality of the park and the amount of monthly space rent that is charged can also vary greatly. For instance, at Antonelli’s in Live Oak the space rent is $250 per month which is reflected in homes there commanding upwards of $700,000 making them some of the highest amongst the Tenant-occupied parks in the county. Conversely, at parks like Surf and Sand in Capitola and DeAnza Pines on the Westside, values plummeted when park owners successfully defied rent control and now an incoming resident will pay $2,863 per month on a 470 SF, 1 bedroom singlewide to have a place near the beach in Capitola. Or if you prefer the Westside, you can pay space rents as high as $5,879 per month for a place with front-row ocean views.
Mobile Homes command the highest prices in resident-owned communities, where each home comes attached to the land with a foundation on its own Assessor’s Parcel with property taxes and HOA dues. Here, the stability of a true ownership interest provides a higher level of financial stability. But you get a better value for the money than a townhouse, with prices in the mid-500’s to mid-600’s per square foot. By comparison, townhouses often sell for several hundred dollars per SF higher for a dwelling with common walls and a smaller yard.
These factors make buying a mobile home a worthy alternative to consider for the budget-weary, and I have found that such a commonly overlooked option often exists right in plain view when you finally take a look with an objective eye.
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