Why are Builder/Developers Using Manufactured Homes?

Successful builders of site built homes are beginning to realize the many advantages of manufactured housing by integrating manufactured homes into their plans. They have discovered that manufactured homes can help them:

Effectively expand their current market.

With a minimum of time, labor and cost, builders can add substantially to their annual production by using manufactured homes.

Provide a high-quality home at a lower cost than site-built housing.

Factory building maximizes efficiencies and takes advantage of economies of scale to produce a comparable home at significantly less cost.

Meet pent-up consumer demand for affordable entry-level, single family detached housing.

Rising costs have made it difficult to build for the entry-level home buyer. Manufactured homes makes it possible for the builder-developer to meet the needs of this growing market.

Produce housing using significantly less on-site labor.

The manufactured home factory essentially functions as one huge subcontractor on the structure of the home itself. This makes the builder-developer less vulnerable to the problems of a shrinking construction labor pool.

Secure long term income.

Land-lease communities in particular offer an attractive long stream of income that the community developer can depend on__something almost unheard of in a single-family residential development.

Utilize property that might otherwise be financially or technically difficult to develop.

Manufactured homes can help builder-developers build new homes developments in cost sensitive markets, take advantage of difficult or environmentally sensitive home sites, and make the most of lots in areas where security is a concern. Many builders also like the ability to additionally customize the home on site by adding such features as garages, porches and decks.

All of the advantages for builders utilizing manufactured homes in housing developments is a concession that manufactured homes are more affordable, equal or superior in quality, and offer the home purchaser more value than stick-built housing. Those assets are not only important to the subdivision developer, but also to the individual purchaser for placement on individual private property lots or locating the manufactured home into a land-lease community.