New Home Builders Shift Focus To Smaller Homes For More Affordable Options – A Space Already Occupied By Manufactured Housing

Rising interest rates and construction costs, along with demand for more affordable options, pushed new home builders to shift focus, according to recent analysis by The Center Square, reported by  Zillow real estate base.

They’re responding to the higher interest rate environment…by basically building smaller, less expensive taller units and they are leaning into higher density.

Builders also focused on homes with less than three bedrooms, with new construction up 9.3% from 2021 to to 2022. New starts for those with three bedrooms or more dropped 13.1% according to analysis.

Meanwhile, manufactured homes already occupy that space, with quality constructed homes with all the features and amenities of a comparably sized site-built home (excluding land cost) and will have a price up to 50% less. In fact, manufactured housing is a significant source of unsubsidized quality affordable homes in the United States.

The following manufactured home benefits versus site-built housing may be surprising to shoppers seeking quality affordable homeownership.

• Manufactured homes are the only form of housing regulated by a federal building code, which includes health, safety, energy efficiency and durability.
• A manufactured home is a sound investment, with a cost up to 50% less per square foot than a comparable traditional site-built home, equal and often superior in quality of construction, appearance, and amenities.
• Manufactured homes/modular homes can open the door to quality homeownership for millions; long-term affordable solution for families; they can appreciate in value and be an effective long affordable solution for families and communities across the country.
• Multiple manufactured home financing choices are available. A manufactured home affixed to real estate will qualify for mortgage financing similar to a traditional site-built home, including FHA and V.A. Because the total consideration is lower, the required down payment requirement will be proportionately less.
• Greater flexibility in the construction process allows for customization to meet homebuyer lifestyle and needs, including enhanced energy efficiency such as Energy Star-labeled manufactured/modular homes for substantial savings in many aspects of owning and operating a home, and an array of amenities, decor, fixtures and appliances.
• The affordability of manufactured homes is due to the efficiency of the factory building process, utilizing the same building materials as site-built homes.The controlled environment and assembly line techniques remove many of the problems encountered during traditional on-site home construction, such as weather, theft, vandalism, etc.
• As a result of upgraded HUD standards, manufactured homes produced since 1994, have been proven to be equal and in many respects safer than site-built homes during tornadoes and hurricanes. To access studies confirming manufactured home wind safety, click,  “Manufactured Home Wind And Storm Safety: An Honest Discussion.” 
• As a result of the 1976 HUD Code, manufactured homes may be “less susceptible to the occasion of fire” than any other type of available dwelling, according to a study by the National Fire Protection Associations. To view the study, click Manufactured Homes Fire Safety: An Honest Discussion.”