Manufactured Housing’s Notable Growth to Continue into the New Year
The manufactured housing market represents a vital segment of the housing industry, offering affordable and versatile housing solutions for thousands of homebuyers nationwide.
Despite a sluggish growth in the site-built housing market, manufactured homes have experienced continuing growth heading into the new year with manufactured home shipments. Consider the following:
Manufactured home shipments through November 2024 totaled 96.2 thousand homes.
Estimated shipments through 2024 were 103.2 thousand total placements in 2024, up 16% from 89.2 thousand in 2023.
Note: In February, the Census Bureau will release the shipments for December and all of 2024.
Defining Manufactured Housing: Manufactured housing refers to homes built in a factory setting and then transported to their final location for installations. Unlike traditional site-built homes, these structures are constructed under controlled conditions, adhering to specific standards and regulations. In the United States, for example, manufactured homes must comply with the HUD (Department of Housing and Urban Development Code, ensuring quality, safety, and energy efficiency.
Manufactured housing is distinct from modular housing, which is also factory built but follows local building codes rather than a federal standard. Manufactured homes often serve as an affordable alternative for low-to-moderate income families, retirees, and individuals seeking cost-effective housing solutions.
Note: Modular homes are most often constructed by the builders of manufactured homes.
Affordability: Manufactured homes cost significantly less than site-built homes. Making them an attractive option for buyers with limited budgets. According to recent estimates, the average price per square foot for manufactured housing is about half that of traditional homes.
Technological Advancements: Improvements in construction techniques and materials have advanced the durability, energy efficiency, and aesthetic appeal of manufactured homes. Modern designs often include features such as solar panels, smart home technology, and customizable floor plans.
Urbanization and Housing Shortages: Rapid urbanization has led to housing shortages in many regions, prompting governments and developers to consider manufactured housing as a viable solution to meet growing demand.
Shift in Consumer Preferences: Younger generations and retirees alike are embracing manufactured housing for its affordability, flexibility, and ability to provide a sustainable living environment.
(Sources): U.,S. Census Bureau/ WISEGUY RESEARCH CONSULTANTS
