Manufactured homes make up an important piece of the U.S. housing market, especially for rural and low-income households seeking a more affordable alternative to traditional homes. According to the National Association of Home Builders’ Eye On Housing blog, there are currently 7.2 million occupied manufactured homes in the U.S., accounting for 5.4% of all housing.
Unlike mobile homes or trailers, manufactured homes are factory-built to meet the United States Department of Housing and Urban Deevelopment's (HUD) standards and must meet specific size and construction criteria. One of the main benefits of manufactured homes, however, is their cost. As of most recent data in 2023, manufactured homes cost about $86.62 per square foot, compared with $165.94 for site-built homes—saving homeowners nearly $119,000 for a typical 1,500-square-foot home. Despite rising costs, manufactured homes have remained the more affordable choice in both their purchase price and monthly expenses. However, many owners of manufactured homes still struggle financially. Over one-third of manufactured home owners are cost-burdened, spending at least 30% of their income on housing, a higher rate than those in other housing types.
Manufactured homes provide a cost-effective housing solution, particularly in rural areas where the transportation and material costs for site-built homes can be significantly higher. However, restrictive zoning laws often limit their placement in urban areas. Regulations such as bans on manufactured home communities and large lot size requirements can substantially increase costs, making it difficult to establish manufactured housing in cities. Reducing these zoning barriers could not only expand affordable housing options in high-cost urban areas but also improve access to essential services such as healthcare and economic opportunities for lower-income communities. Read more