We’ve all seen the Trailer Park Boys. Or at least seen the posters. We all know there’s a bit of a stigma to living in a trailer park – or the more professionally-termed ‘manufactured home park’. But when you’re in the middle of a housing crisis, where the cost of a new home is out of reach for the vast majority of mid-to-low income families, these parks are taking on a new kind of shine.
Right now it’s possible to buy a two
bedroom detached home for less than $100,000, even as low as $50,000, in
certain parks in the Lower Mainland. Well, certain parks in Surrey. The numbers
are dwindling, as these parks and the land they sit on are prime candidates for
redevelopment. But most young families won’t even consider them, while still
thinking long and hard about committing to a million dollar mortgage for a 600
square foot condo.
While there are certain pros and cons to
the manufactured home market, there’s no denying that they’re one of the last
affordable options for families. However, even these homes took a hit to their
affordability with new legislation passed last year by the NDP government.
The new rules outlaw refinancing for homeowners with an insured mortgage. This applies to virtually all manufactured homes. It’s intended as a rent-control measure, but ENM’s Daniel Greenhalgh says this law will hurt some of the most vulnerable people in B.C.
“If you own 50% of a manufactured home, you
now can’t go to a bank or credit union for a responsible refinancing of your
mortgage. You’re forced to go to non-traditional financiers, and your interest
rate could go as high as 8% as opposed to
4%. This is a difference of hundreds of dollars in interest for people
that are already living on razor thin margins.”
Greenhalgh says this law is part of a wave
of market manipulations that are intended to create more affordable housing,
but may wind up having the opposite effect.
“It’s just a death by a thousand cuts. In this one or two year window, there have been so many new market shifts. It’s a new challenge everyday. The whole market is getting squeezed, and I think it will result in less and less people being able to afford their own homes.”
With development
fees and rising land costs, it’s very unlikely that new manufactured home
parks will be built in the Lower Mainland. Still, province-wide, they remain by
far the least expensive housing option. We only hope that measures intended to
reign in greedy homeowners don’t inadvertently drag manufactured home owners in
their wake.
