Gene Davis from Reliable Home Solutions stands behind the kitchen counter of one of his manufactured homes on display in West Sacramento.

SACRAMENTO REGION, CA (MPG) - More than 120,000 apartment units fill the Sacramento region, with a vacancy rate of about 4.2%, compared to just 0.6% for conventional homes and 1% or less for manufactured home parks, according to data from Apartments.com, the U.S. Census Bureau, and state housing reports. 

This contrast raises a pressing question: Why have apartment developments surged while single-family and manufactured homes, which have far tighter occupancy and potentially greater long-term value, remain underbuilt?

For many younger residents, renting an apartment at $2,000 or more per month is the only option, even though a manufactured home could cost about the same monthly while building equity. Developers continue to favor apartments due to zoning rules, faster build timelines and high investor returns, according to data, but this dynamic contributes to a housing market that leaves many aspiring homeowners out of the conversation.

A manufactured home with an upstairs loft is on display at Reliable Home Solutions in West Sacramento.

Gene Davis, a local contractor for 33 years and the Reliable Home Solutions owner in West Sacramento, has been in the manufactured home business for decades. He said the dream to own a home in Sacramento is less attainable for young adults with the high cost of conventional homes. Davis said he wonders when younger prospective buyers will reach their breaking point with the market.

“At $750,000, $500,000, the payment on (conventional homes) for a young couple with a baby and a student loan, not only are they going to have a house payment but they’re going to be paying about $8,000 to $10,000 a year in taxes,” Davis said.  

According to Apartment List, rent in the Sacramento area can generally range from under $2,000 to more than $3,500 for luxury style apartments, which is anywhere from $24,000 to more than $40,000 annually. Because apartments are rentals, tens of thousands of dollars are paid to property managers with no equity retained for the residents. Paying a mortgage on a manufactured home results in equity for the homeowner. 

Home equity is the difference of a home’s market value and the amount owed on the loan, determining how much of the home is actually owned, according to Wells Fargo’s website.

Mobile and manufactured homes can typically have a mortgage range from under $1,000 to more than $2,000 for double- and triple-wide models, according to online The Mortgage Report, which are well under the median mortgage payment of about $3,500 for a conventional home.

A bedroom in a manufactured home by Reliable Home Solutions features a built-in closet with lower storage to maximize space, Gene Davis, the owner of Reliable Home Solutions said.

 

The correlation between median conventional mortgages and median salaries in the Sacramento area supported Davis’ claim, as the median listing price for a house in the area ranged anywhere from $500,000 to more than $800,000. The median income for Sacramento-area residents ranged roughly between $60,000 and $92,000. The median cost of a home is six times that of the median salary. 

If nearly all conventional and manufactured homes are occupied while thousands of apartment units sit empty, why has the Sacramento region prioritized building more apartments instead of affordable ownership options?

Grayson Anderson, a realtor with Dwell Real Estate, sells conventional homes in older Sacramento neighborhoods, such as the Land Park and East Sacramento areas. Anderson said the clients he regularly deals with typically receive a hefty amount of funds from outside sources to help with down payments and closing costs but other clients have found temporary rental deals to save money or stayed with family to cut their monthly expenses. 

Anderson said that houses in older neighborhoods tend to hold their value or increase over the course of a few years. This means it’s not getting any easier for younger first-time homebuyers if the median salary doesn’t reflect the rising cost of homes. 

Grayson Anderson of Dwell Real Estate stands in the kitchen area of his listing in East Sacramento.

The appeal for most apartments are the amenities and promotions, giving residents their first month free, gym memberships or deals on long-term agreements, Anderson said. Costly repairs, permits and unforeseen circumstances are also some factors that can drive potential buyers away from conventional homes. 

Anderson said that prospective buyers often compromise their wish list for their potential dream home if it means making the house their own over time. A buyer looking for a three-bedroom home could settle for a two-bedroom if the price and neighborhood are right for them. Manufactured homes might not be an option for some buyers, Anderson said, because established neighborhoods with older homes that have character are more desirable. 

“I think the location matters for a lot of people and some of those areas are still being developed and there’s not much around,” Anderson said. 

Michelle Nosal, a real estate agent with Windermere Signature Properties, regularly sells manufactured homes and said they can be a more cost-effective option for individuals looking to get out of renting or living with family. 

Manufactured home parks can blend some of the amenities from apartments with the desirability of homeownership but it also blends some of the complications of both processes.

Dwell Real Estate signs promote an open house for an East Sacramento residential home listed for sale.

Nosal said loan rates for mortgages can sometimes be more than a conventional home but usually they are still competitive. 

“If buyers can live in the payment, I say, ‘don’t worry about the price point,’ but if the payment works for you, jump on it now,” Nosal said. 

To “live in the payment” means to achieve comparable monthly payments, regardless of what the purchase price is. For example, if an apartment’s $1,600 rent is paid comfortably every month, then a mortgage payment of around $1,600 will result in a comparable living situation, financially. 

A conventional mortgage is more expensive than both manufactured home ownership and renting by roughly 60%, so where do residents who dream of owning a home turn to?

The Sacramento area is at a turning point, where visible challenges such as stalled infrastructure, inadequate income and rapid development converge, according to the realtors and Davis. The contrast between homeowners and new apartment construction highlights a city grappling with how to balance progress with accountability.