2025 Outlook for Manufactured Housing Indicates Growth Opportunities
The manufactured housing industry is poised to be a prominent commercial real estate sector moving forward. Manufactured housing has become one of the most innovative sectors and could be a viable solution to the significant ongoing lack of affordable housing, according to the Berkadia Manufactured Housing Annual Report.
The U.S. The Department of Housing and Urban Development unveiled the largest update to the Manufactured Home Construction and Safety Standards. In September 2024, HUD implemented the minimization of regulatory burdens, the allowance of multi-unit homes, and the improvement of materials and appliances during construction.
The 2025 housing market is expected to face challenges following a slow year for activity in 2024. Sustained high mortgage rates and issues will present the most significant challenges and should present growth opportunities for manufactured housing. With the significant increase in manufactured home production in 2024, the sector is gaining traction due to its affordability, energy efficiency, and faster construction times. Representing 13% of new housing starts in 2024, manufactured housing is set up for further growth, supported by zoning reforms, financing improvements, and sustainable innovations.
Beyond the regulatory changes, a positive sign of 2024 was the significant increase in total shipments of new manufactured homes from a year ago. The nearly 16% annual increase in shipments signifies the popularity and demand rising within the sector as more people become more educated about the affordable and modern products offered today.
