Photo Credit: Friends Stock / Shutterstock
After over two years of elevated real estate prices, mortgage rates, and rents, the housing affordability crisis in the U.S. is more apparent than ever. Policymakers, economic experts, and regular U.S. households have been searching for tools to alleviate the pressure of housing costs. Expanding manufactured housing is one possible solution.
The category of manufactured housing includes housing units that are prefabricated in a factory and then transported to their ultimate destinations. Because these units tend to have simple designs and materials that make them efficient to produce, they are often significantly less expensive than site-built homes. A 2023 report from the Manufactured Housing Institute found the average cost per square foot of a manufactured home was $87, roughly half of the $166 cost per square foot of a site-built home.
For lower- and middle-income families, this more affordable option has significant appeal. Currently, 21.2 million Americans live in manufactured homes, and manufactured homes represent around one out of every 10 new homes constructed in the U.S. each year. Further, the quality of manufactured homes has increased as well, with better materials, greater energy efficiency, and improved designs.
Manufactured Housing Shipments Over Time
After reaching a new high in 2022, manufactured housing shipments have dropped significantly
Source: Construction Coverage analysis of U.S. Census Bureau data | Image Credit: Construction Coverage
After plummeting during the onset of the pandemic, manufactured home shipments rose to an annual rate of 123,000 in March 2022, more than doubling over the course of a decade. However, the landscape shifted dramatically as elevated mortgage interest rates and persistent inflation took hold, leading to a significant drop in shipments. By March 2023, shipments had fallen by a third compared to the prior year. Although shipments have gradually rebounded as inflation has eased, the annual shipment rate of approximately 104,000 in July 2024 remains approximately 15% below the March 2022 peak.
Manufactured vs. Site-Built Housing Costs
While far less expensive, manufactured homes have experienced similar price increases as site-built homes
Source: Construction Coverage analysis of U.S. Census Bureau and Zillow data | Image Credit: Construction Coverage
The average sale price of manufactured homes in 2023 was $124,300. For context, Zillow pegs the median home value in the United States at slightly over $362,000. While manufactured homes remain relatively low-cost, the growing demand for housing has pushed prices higher in recent years. Since 2014, the average sale price of a manufactured home has grown by 83.0%, while the average price across all homes climbed 94.6%. For both manufactured and site-built homes, most of this growth occurred in 2020 and 2021, before plateauing in 2022 amid rising interest rates.
Manufactured Housing Shipments by State
Manufactured housing is most popular in the South
Source: Construction Coverage analysis of U.S. Census Bureau data | Image Credit: Construction Coverage
Manufactured housing varies in popularity across the U.S., but the South stands out for its affinity for manufactured homes. Fast-growing, high-population southern states like Texas and Florida rank among the top states for total manufactured home shipments. But as a share of all new single-family homes, top locations include lower-income states like Mississippi, Kentucky, and Louisiana, whose residents may be more drawn to manufactured homes as an affordable option. Alabama stands out for its high ranking in both categories. It ranks third for total manufactured housing shipments and fourth for manufactured housing as a share of all new single-family housing.
Below is a breakdown of the U.S. states investing the most in manufactured housing. The analysis was conducted by researchers at Construction Coverage, a website that compares construction software and insurance, using data from the U.S. Census Bureau and Zillow. For more information, refer to the original story U.S. States Investing Most in Manufactured Housing at Construction Coverage.
States With the Most New Manufactured Homes
States With the Highest Percentage of New Manufactured Homes
Methodology
Photo Credit: Friends Stock / Shutterstock
The data used in this analysis is from the U.S. Census Bureau’s Manufactured Housing Survey (MHS), the U.S. Census Bureau’s Building Permits Survey, and Zillow’s Home Value Index. To determine the states investing most in manufactured housing, researchers at Construction Coverage calculated the total manufactured home shipments as a share of all new single-family homes in 2023 (the sum of manufactured home shipments and single-family housing units authorized by building permits). In the event of a tie, the state with the greater total manufactured home shipments was ranked higher.
For complete results, see U.S. States Investing Most in Manufactured Housing on Construction Coverage.
