Is buying a brand-new manufactured home really the best option for finding affordable housing or an investment in Palm Springs?

Most people who know me know I have a strange passion for homes on wheels and have earned the reputation, jokingly, as "The Mobile Home Queen of Palm Springs." I am uncertain as to why I developed this peculiar enthusiasm, but I have a strong affection for mobile homes and mobile home communities, and affordable housing.

I’ve been in this world for a long time. I’ve renovated a few older homes over the years, I've developed a mobile home park with 100 new homes, and I continue to be fascinated with the promise of prefab living.

So, after my latest project—a full gut-job on a 1960s mobile home—I was ready for a new challenge.

But instead of buying another older home to rehab, I wanted to compare: what would it really take to buy a brand new 2025 manufactured home and place it on a vacant lot in one of my favorite parks. How would that cost and effort compare to just renovating an older one?

Here’s what I discovered in the process.

First, Good Luck Just Getting a Call Back

As an enthusiast, the "shopping" part is supposed to be fun. I went online and had a blast browsing the gorgeous photos of new homes and creative floor plans.  (Seriously, manufacture home design has come a LONG way compared to your grandma's mobile home from the 1970s!)

But then I actually tried to buy one.

The first problem is that the online listings are basically clickbait. You find a model you love, click "Inquire," and send your info off into the void. More often than not, you find out that model was discontinued two years ago.

On my recent search, I sent out seven different online inquiries to various builders and dealers. Guess how many bothered to call me back? Two.

It didn't appear better in person. I went to a local dealer and sat down with a sales manager who proudly told me how she "works seven days a week!" Great, I thought, a real hustler. But after our meeting, I called and emailed on a Saturday with some follow-up questions.

Crickets.

Two days later, she emailed, "I'll get back to you shortly."

 More crickets.

 Five days after my initial request, I finally emailed again asking if perhaps I should talk to someone else. Her reply? "Oh, I’m just working on your response now!"

Another builder rep took a ton of my info and promised a local dealer would call me "soon." That was ten days ago. I'm still waiting. I’m learning that the manufactured home industry is like the car-buying industry. It’s a battle just to get basic information.

That "$159,000 List Price" Is a Fantasy

Sounds good right? A new home for so cheap??  Ok. So let's say you finally get a dealer to talk to you. Now comes the real sticker shock.

That "great buy" for $159,000? That is a starting line, not a finish line. That price is for the bare-bones "base model," and it doesn't include what most of us would consider standard.

Want to add these "upgrades"? Get your checkbook out.

• Air Conditioning: Often not included in the base price.

• 9-Foot Ceilings: The standard is usually 8 feet. That airy, open feel costs extra.

• 2x6 Walls: The standard is often 2x4. As a renovator, I know 2x6 walls are essential for adding better insulation, which saves you money long-term.

• Better Insulation: You'll want to beef up the R-value in the walls, floor, and ceiling.

• A Dishwasher? Not always standard.

• A Garbage Disposal? Add that to the list, too.

• Standard grade laminate counter tops not your thing?  Ok, let's add quartz counters too

These aren't "luxury" upgrades; they're about making the home efficient and livable.  Oh and they advertise that you can make custom design changes too which sounds great right??  But don't kid yourself-  theres a price for that.  The salesperson will need to contact the factory to get a quote if say you want to change a wall location, or add a sliding glass door.  Despite the fact it could take a week or so to get that quote back, expect there to be engineering fees that you'll need to add to that cost.  In my case, I wanted to move a wall one foot to make one bedroom bigger than another-  the engineering fee alone was $3,500!

The Real Cost: Meet the $100,000+ "Set-Up" Fee

This is the part that truly shocked me, even with my background in development. The price of the home is just one-half of the equation. The other half is getting it delivered and put together.

From my own experience and the quotes I'm getting, you are looking at around $100,000 at least just for the site work and set-up to place the home in a park. (This cost can be even higher if you're placing it on private land, which involves more utility work and permiting costs).

Where does that $100,000 go?

• Delivery & Permit Fees: Getting the home from the factory to your lot.

• Setting the Home: It arrives in two (or more) pieces. They have to be "stitched" together, with interior and exterior work

• Prepping Utilities: Hooking up water, sewer, electrical, and gas.

• Concrete Work: You'll need a driveway, walkways, and pads for things like your A/C unit.

• Decks & Steps: The home sits high off the ground. You need steps to get to your doors. Want a porch or deck? That's extra.

• Carport and Overhang awning: A necessity in our desert climate.

• Hooking up the A/C: The unit has to be purchased and installed on-site.

My Final Analysis: The $300,000 "Affordable" Home

So, what's the real all-in price for my new project?

When I add it all up, that $159,000 "deal" is a fantasy. By the time I add modest upgrades (like, you know, a dishwasher and 2x6 walls) and the non-negotiable $100,000+ in set-up costs, the real price is vastly different.

In short: for a decently updated 1,400 sq. ft. home, I'm looking at $300,000 at least. And that’s not including a single shrub or sprinklers for landscaping.  So $300,000 for a new home in Palm Springs is still a bargain!!!  But is it really?

Keep in mind: most parks where you place your home will have space rent to deal with.  The average space rent for a decent park runs approximately $1000/month.  Even in parks with rent control, the space rent will continue to increase.  Additionally, if you're financing a manufactured home, the interest rate will be about 10% on average, with a term of 20-25 years, compared to conventional financing for a stick-built home of 6.25% for 30 years.  So the long and short of it, for what the payments would be for a $300,000 new mobile home, you could probably buy a condo or house for approximately $500,000!  Although in my own experience, it is a myth that manufactured homes decrease in value in the Palm Springs area, rather than increase over time; purchasing a traditional home likely offers more security in terms of appreciation. (Another consideration that may be appealing, there are a few parks in the Palm Springs area where you actually OWN the land, as opposed to leasing it-  and that may be an option for you to consider as well.)

This completely changed the math for me.

 It's now worth comparing that $300k+ number to the cost of existing resale manufactured homes in the Palm Springs area.  

Here's the big lesson I learned: It may be significantly less expensive to buy a used manufactured home and pay to upgrade it.

Why? This is due to the fact that the home is already set up on the site, and you'll most likely need minimal site prep. The driveway is poured, the utilities are hooked up, and the decks are built. You will save that entire $100,000+ in set-up costs right off the bat, leaving you with a healthy budget for new floors, paint, and countertops. Yes, there are some mobile homes out there priced under $100,000, but they're rarely in a desirable park or location (although it can happen). So any investor knows, you make money on the purchase by buying right! I have seen some fixers for sale in the mid 100s in prime locations.  If you add a generous $100,000 budget renovating that home, your cost then is around, say, $250,000. And chances are, you'll have a beautiful home when you're done to live in or resell—if it's in a good, desirable location?  You might sell it for well over $300,000, making it a good investment!  This is all speculative, of course, and there are so many variables to consider-  please do you homework!  However, based on my own experience, I have made more profit from renovating an older manufactured home than from renovating a traditional home.

My final conclusion

Bottom line, I still think Manufactured homes are a great option for many looking for a home in the Palm Springs area.   I really want to be in this one particular park, for numerous reasons.  It has an active social community, nice amenities and a clubhouse, is well maintained, and is in an ideal location for me.  So although there's no doubt a "new" home sounds appealing, there are a few resales I'm eyeing to see if the prices will come down below $200,000.  And if they do, I'm going to jump on buying one, as opposed to putting in a new home-  it just makes more sense!  So stay tuned to see what happens!

This has definitely been a learning experience. If you're starting this journey, my advice is to go in with your eyes wide open. If renovating a mobile home sounds like a plausible option to you, reach out to me.  I'd love to help you find the perfect home that might make sense as your next project!  I am also available to share my experience with buying new homes as well.  Again, I didn't earn the reputation as the Mobile Home Queen for nothing!

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