Manufactured Housing Industry is Positioned to Address the Nation’s Affordable Housing Needs
Head winds in the site-built industry are potential tailwinds for manufactured housing, as the competitive pricing and speed at which manufactured homes can be built. The average cost of a Hud Code manufactured home is well below the pricing of a traditional site-built home. Furthermore the manufactured housing industry will likely benefit from government initiatives to improve the growing housing shortage issues.
Recently, numerous state and local governments have instituted changes to local zoning and placement restrictions that allows manufactured homes to be located in heretofore “home only” neighborhoods. In addition, the federal government has relaxed several restrictions on the financing of manufactured homes to align with site-built housing, including VA, FHA and USDA manufactured home loans/mortgages.*** (See reference bottom of post)
According to U.S. Department of Housing and Urban Development (HUD) and U.S. Census Bureau data finds that the average sales price of a new manufactured home sold in the U.S cost $127,300 on average. The average cost of a single-section was $85,800,and a double-section manufactured home had a cost averaging $159,200.
As of 2022, the average sales price of a new single- family site-built home (excluding land) was $430,908 – $303,408 – more than that of a new manufactured home.
The following is a review of the average costs of manufactured homes by states. These prices fluctuate depending on the number of single-section homes sold compared with the more expensive double section homes.
New manufactured homes sell for the most money, on average, in Idaho, Montana and Arizona. The average sales price of a new manufactured home in these states is $168,500, $160,600 and $160,500, respectively.
New Manufactured homes sell for the least in Kansas, Ohio and Nebraska. In these states, new manufactured homes sell for an average of $100,800, $101,200 and $101.900.
New manufactured home prices between 2017 and 2002 have increased the most in Wyoming, Illinois, Kentucky and Mississippi. Though manufactured homes aren’t as expensive as in other states, prices have grown dramatically in recent years. As previously noted, these state prices for manufactured homes are a result of the sales growth of more expensive double section homes, as opposed to the less expensive single section homes.
*** For more information regarding Federal financing programs for manufactured homes, click the following previous post:
“MH Financing: How VA Loans May Be Used When Purchasing a Manufactured Home”
