Manufactured homes, also referred to as “mobile homes”, are built in a controlled environment of a factory and then transported to a piece of property where it is set. The construction cost of these structures per square foot is considerably less than traditional homes constructed on-site. Over the years, the manufacturing of these homes has undergone a huge transformation in terms of style, construction quality, amenities, and public perception.
This concept of housing is mainly beneficial for individuals with a lower income base, especially in rural areas of the nation. The Federal Housing Administration and Department of Veterans Affairs have initiated manufactured housing loan programs to boost housing affordability among the targeted demographic.
How is manufactured housing made?
According to Cavco Industries, Inc., a renowned maker of these units, manufactured housing is constructed on an assembly line, where each section is framed and put together in stages. The completion of the entire project can take several days and weeks, depending on the size of the unit and the extent of customization that a customer requests. Construction materials such as steel, aluminum, wood, granite, plastic, glass, copper, and more, are available in the manufacturing housing unit as similar to on-site home construction. After the completion of the whole unit, the house is loaded onto a flatbed truck and transported to the customer’s property.
During a conference held at the Manufactured Housing Institute (MHI) 2024 Congress & Expo, industry leaders discussed the latest trends that have the potential to bring wide opportunities across the landscape. Recently, new manufactured housing developments have emerged across the United States, and communities are rapidly expanding in the region. In 2023, almost 93,000 manufactured homes were produced within various states including Texas, Florida, Utah, Montana, and Colorado.
Moreover, the sales of these homes have increased on the coastal level due to the greater frequency of natural calamities in these areas. Since 2014, the prices of manufactured homes have risen by about 80%, compared to on-site building construction. This significant rise in demand for these homes is anticipated of the manufactured housing market in the forthcoming years. According to Allied Market Research, the industry is projected to rise at a CAGR of 6.5% by 2027.
On the other hand, the development of more lenient appraisal standards, the spread of more flexible mortgage products such as FHA loans, and the use of streamlined financing have increased the demand for manufactured housing despite the higher interest rates. In addition, the industry is making greater use of tools and strategies such as online mortgage processing, digital marketing, and virtual home tours. This has made the buying process of these homes simpler and more efficient, thereby increasing the appeal of manufactured homes. Meanwhile, improvements in design and manufacturing are opening new avenues for the industry. These innovations include larger windows, varied external materials, elegant finishing, and open-floor plans.
Further, as the increasing number of consumers and policymakers emphasize eco-friendly housing, many leading manufactured home builders have started adopting sustainable practices. Builders have also considered more energy-efficient construction designs including HVAC systems, windows, and insulation.
In August 2024, FG Communities, a self-managed real estate investment company announced its acquisition of a manufactured housing community in Raleigh, North Carolina. With this agreement, FG aims to expand its presence across the region by offering affordable housing solutions for low-income earners. Michael Anise, the CEO of FG Communities s . He added that through this initiative, the company aims to broaden its portfolio with long-term benefits.
In June 2024, Invesco Real Estate, one of the leading real estate investment firms announced its partnership with Stockland, a renowned Australia-based manufactured housing developer. With this partnership, Invesco has planned to expand its manufacturing housing strategy and develop and hold land lease communities, and assets in Australia. In an interview, Ian Schilling, the head of Invesco Real Estate said that the land lease community across the country is predicted to grow significantly in the coming years due to the shortage of housing and an aging population.
Similarly, in April 2024, Flagship Communities, one of the largest manufacturing housing community developers, . According to him, both markets have the potential to maximize the existing synergies of the company and enable it to reach several emerging economies globally.
Flagship also stated that the transaction has increased its holdings to 82 communities with more than 15,000 homesites. This acquisition also strengthens the REIT’s presence in Tennessee while entering the core Nashville market, one of the fastest-growing markets in the U.S.
Final words
The manufactured housing industry has witnessed significant growth due to the rapid urbanization across the globe which increased the need for affordable housing in developed and developing countries. Moreover, the continuous incorporation of smart technologies in housing construction is predicted to create wider opportunities for the landscape in the coming years.
Author’s Bio
Although belonging to an engineering stream, Rosy had a knack for writing throughout her student life. Her keen interest in creative compositions drove her to take up content writing professionally after graduation. For the last few years, she has been delivering impactful content, engaging and delighting readers, along with grabbing their attention.
**𝑨𝒓𝒕𝒊𝒄𝒍𝒆 𝒘𝒓𝒊𝒕𝒆𝒓: Rosy Behera
