2025 Housing Construction: Promising Outlook for Manufactured Housing
The 2025 housing market is expected to experience a blend of challenges and opportunities. Sustained elevated mortgage rates and persistent affordability issues have tempered new home demand overall but encouraged more buyers to closely examine manufactured homes. 2024 will record increases around 15% over 2023, to a total of nearly 110,000 homes. Continued strong economic fundamentals and pent-up buyer interest are driving the optimism in construction sectors, according to industry forecasts from Builder Magazine, the National Association of Realtors (NAR), and the National Association of Home Builders (NAHB).
Both NAR and NAHB point to supply-demand mismatches and affordability as critical issues, underscoring the need for innovative housing solutions. These challenges offer a significant growth opportunity for manufactured housing, which provides high-quality homes at lower costs, built to the HUD Code.
The Manufactured Housing Institute (MHI) highlights the sector’s adaptability, with factory-built homes increasingly recognized for quality, affordability, energy efficiency, and shorter construction times. This positioning aligns with 2025’s trends, where affordability and rapid deployment of new units are paramount. As policymakers explore zoning reforms and financing improvements, manufactured housing is set to play a central role in addressing housing shortages. In 2024, manufactured will represent approximately 13% of all new housing starts, exceeding prior years share, with the promise for continued growth in its share of new residential construction. The potential will present itself for HUD code homes to exceed the 2024 share.
By tapping into emerging technologies, sustainable designs, and favorable regulatory shifts, the manufactured housing industry stands poised to meet 2025’s demands while reshaping housing perceptions nationwide. For more insights on the general outlook for housing, check out the Builder Magazine article here, and begin preparation to sell more homes in 2025.
