The popularity of manufactured homes has surged in recent years due to the ultra-competitive, low-inventory housing markets, and the fact that they are affordable and comparable in quality to single-family homes. However, rising prices and increasing investor activity are making it difficult for many buyers to afford them. Despite being the largest source of affordable, unsubsidized housing in the country, getting a mortgage for a manufactured home is more difficult and costly than for a single-family home. The industry of manufactured housing was born in the 1960s and 1970s, and today's standards for building a manufactured home are comparable to those for building single-family homes.
The rising popularity of manufactured homes in recent years is largely due to their affordability and comparable quality to single-family homes. However, the increasing investor activity in the industry has led to rising prices that are making it difficult for many buyers to afford them. This is a concerning trend given that manufactured homes are the country's largest source of affordable, unsubsidized housing. Additionally, the Consumer Financial Protection Bureau has found that getting a mortgage for a manufactured home is more difficult and costly than for a single-family home. This poses a challenge for many potential buyers who may not have the financial means to purchase a home outright and need to rely on financing. As the demand for these affordable housing options continues to grow, it is important for policymakers and industry leaders to address these issues and find ways to make manufactured homes more accessible and affordable for all Americans.
The popularity of manufactured homes declined in the early 2000s due to the subprime mortgage crisis, but has since made a comeback as an affordable housing option. This type of housing was previously referred to as mobile homes, but was given a new name after regulations were put in place in the 1960s and 1970s to ensure their quality and safety. Today, the standards for building a manufactured home are similar to those for single-family homes, with some even arguing that they are built to withstand more wear and tear due to the transportation process. Manufactured homes are typically 8 feet or more in width and 40 feet or more in length while in transit.
Despite a decline in popularity in the early 2000s, the demand for manufactured homes has been on the rise again in recent years. According to the U.S. Census Bureau, annual shipments of manufactured homes began to increase again in 2013 after a period of decline. While there was a decrease in shipments in 2020 due to the pandemic, there has been a significant rebound in 2021 and 2022. In fact, 2022 saw the highest number of shipments of manufactured homes since around 2006. This surge in demand can be attributed to the affordability and quality of these homes, as well as their versatility and flexibility in terms of design and customization options. Manufacturers have also been improving their offerings in terms of energy efficiency and sustainability, making these homes an increasingly popular choice for those seeking affordable, environmentally conscious housing.
While demand for manufactured homes has risen in recent years, so have the prices of new homes. Despite this increase, however, the average cost of a new manufactured home is still significantly lower than that of a traditional single-family home. According to U.S. Census data from 2021, the average price of a new manufactured home was $108,100, which represents a 19.5% increase from the previous year. By comparison, the average price of a single-family home in 2021 was nearly $454,000.
Despite the rise in prices, manufactured homes remain an affordable option for those looking for a new home, especially for those on a tighter budget.
If you're interested in learning more about investing in the manufactured home industry, don't hesitate to reach out to us at Keyhole Connect. Our team of experts can provide you with valuable insights and guidance on how to take advantage of this booming market. You can reach us by phone at 516-750-0392 or by email at firstname.lastname@example.org. We look forward to hearing from you and helping you make the most of this exciting opportunity.