Cheaper And Trendier Alternatives To Buying A Single-Family Home In 2022

The news of rising home prices is everywhere. With asking prices and mortgage rates at an all-time high, many people are wondering if purchasing a home is within reach. Single-family homes have been an aspiration for generations, but that demand has risen in recent years. High demand and low inventory have led to bidding wars and high prices that have left those searching for a home feeling disillusioned.

While the demand for single-family homes isn't going to go away completely any time soon (they make up about 77% of properties for sale on the market), those searching to purchase property are looking into cheaper alternatives. Realtor reports that condos, townhouses, and mobile homes are great opportunities for home ownership that won't drain your bank accounts and still build equity. Condos, townhouses, and mobile homes can be forever homes or be the first step in building the wealth and equity to own a single-family or larger home in the future.

Condos and townhouses

Condos and townhouses have always been an alternative to single-family homes. They're often smaller, with one to three bedrooms, which makes them ideal for first-time homebuyers to step into owning property. Condos and townhouses aren't always cheaper than single-family homes, but that's often due to their location. These homes are typically located in city centers or resort communities, and that prime locale will always raise the price.

But that's not to say you can't find affordable condos and townhouses. Young couples and first-time homebuyers may not need that much room, so purchasing a two-bedroom condo or a small townhouse might be the ideal solution to homeownership at the time. Condos also come with many perks that homeowners love, like less maintenance, security, and amenities like a pool and fitness center, says Money Crashers. Townhouses are more similar to single-family homes in that you're in charge of the maintenance. But you can also find townhouse communities that offer similar perks as condos.

Mobile homes

Mobile homes may be the butt of many jokes, but they're an incredible option for people looking for an affordable option for property ownership. Mobile homes and manufactured homes are assembled in factories before being transported to the living site. And while they might not be the homeowner's top choice of home, they're ideal for many people's finances. Mobile and manufactured homes are affordable housing options, but they also have the highest appreciation of any type of housing, according to Realtor. The value of the homes increased 30.4% in a single year.

Homeowners have two options for where they can place their mobile or manufactured home. The first is buying your own land to place the home, and the other is to rent land in a mobile home park, according to Homes Direct. Owning the land the home sits on gives you some security. These can often be purchased outright, but you'll also need permits and documentation to ensure that the land can legally have a mobile home on it. Renting the land in a mobile home park might be a more affordable option, but you're still subject to the owner's discretion; if they decide to raise prices, you either have to pay it or move your mobile home. But they're still one of the most affordable home options.