Market Data + Trends

These Are the Most Affordable Alternatives to Single-Family Homes

In a high-cost housing market, manufactured homes and vacant lots offer buyers an affordable alternative to single-family home purchases
May 4, 2023
2 min read

Not only are elevated mortgage rates clashing with historically high home prices in the for-sale market, but today’s buyers are also contending with sluggish income growth, making homeownership an increasingly unaffordable goal. Luckily, a few affordable options are available for buyers willing to look beyond the single-family market, Zillow reports.

Condos were a popular choice during the pandemic thanks to their relatively low prices and high levels of supply, but inventory has since dropped off, and demand is falling. Manufactured homes are another affordable alternative, and vacant lots are not only cost-effective, but also give buyers the opportunity to design their dream homes from scratch.

Finally, vacant lots are a possible alternative to buying an already built home. These offer the option to build something custom that’s exactly to your liking, which may entice more buyers in today’s market given the low flow of new inventory leaving few existing options to pick over. One benefit in shopping for vacant lots is the slower pace at which these listings move. The typical lot listing went pending after more than two months on the market, giving buyers who are pursuing a build-it-from-the-ground-up plenty of time to critically evaluate all of their options.

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