Why may manufactured homes depreciate faster than traditional homes?

Manufactured homes may depreciate faster than traditional homes primarily because they are mobile and classified as personal property rather than real estate. This classification affects how they are valued in the market. Traditional homes, which are typically fixed to a permanent foundation and classified as real property, tend to appreciate over time as the land and improvements generally increase in value.

In contrast, manufactured homes can be moved, and their classification as personal property often leads to a lower value. Additionally, because they can be relocated, they may not benefit from the same property appreciation trends seen in traditional homes. The perception of manufactured homes as less desirable can also contribute to their faster depreciation rate, as consumers often prefer the stability and permanence associated with traditional homes.