1

May 2020

Manufactured Housing Landscape 2020

As the housing affordability crisis has deepened, manufactured housing is garnering more interest as an important 

source of affordable housing, particularly among rural and low-income households. In addition, it costs significantly less 

and takes less time to build a new manufactured home than to build a new site-built home of comparable size. As a 

result, manufactured housing has the potential to be an important tool in adding new homes to housing supply despite 

the likely slowdown in the shipments of new homes due to recent elevated levels of job loss.

Factory Built Homes Subject to HUD Code

Manufactured housing refers to housing built in a factory after June 15, 1976 and constructed in accordance with the 

U.S. Department of Housing and Urban Development’s Manufactured Home Construction and Safety Standards code 

(HUD Code), which sets minimum standards for size and quality of construction. Factory-built manufactured homes that 

meet these standards post a HUD label and are subject to federal regulations that supersede local building regulations. 

Homes built before this date are considered mobile homes and are typically of a lesser quality construction. 

It is important to note that recreational vehicles, park trailers, and park model homes are built to different standards and 

are not considered manufactured homes. In addition, although modular homes are often built in the same facilities as 

manufactured homes, they are not considered manufactured housing under the formal definition because they are built 

to local standards in the state where the home will ultimately be located, rather than to HUD standards.

Many Manufactured Homes Located in Rural Areas

Manufactured housing represents 6.3% of the nation’s housing stock but is a higher share of housing stock in rural areas. 

While site-built single-family homes represent about 80% of housing stock in rural areas, manufactured housing 

represents about 14% of stock. Apartments trail a distant third, representing only about 6% of the stock in rural areas.

Occupied Units Declining

An estimated 18 million Americans live in manufactured 

homes. While most manufactured homes are owned, with 

4.8 million homes occupied by owner households, there 

are also 1.9 million units occupied by renter households. 

In 2018, there were another 680,000 homes classified for 

seasonal or recreational use and another 860,000 units 

which were vacant. 

The number of occupied manufactured homes fell slightly 

over the past six years, by about 140,000 households. This 

is concerning because there is a dearth of affordable 

housing in the U.S. today, and manufactured homes tend 

to be occupied by lower-income households.

1.92 1.90 1.94 1.94 1.91 1.88 1.87

4.88 4.82 4.73 4.72 4.7 4.7 4.79

2012 2013 2014 2015 2016 2017 2018

Renters Owners

Households Living in Manufactured Homes by Owner vs. Renter 

(2012-2018) (millions)

Source: American Community Survey

6.80 6.66

Multifamily Economic and Market Commentary
0%

5%

10%

15%

20%

25%

30%

35%

Less than $20K

$20K to $30K$30K to $39K$40K to $49K$50K to $59K

$60K-$79K$80K-$99K

$100K or more

Manufactured Home Renters

Site-Built Renters

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Manufactured Homes Occupied by LowerIncome Residents

The median annual household income of manufactured home residents who own their homes is about $35,000, half 

of the median annual income of site-built homeowners. Over one-quarter of manufactured home owners earn less 

than $20,000 annually and two-thirds earn less than $50,000 annually. By contrast, about a third of site-built 

homeowners earn less than $50,000 annually. 

While the distribution of renter household incomes skews lower in all types of housing, manufactured home rentals 

are particularly important to lower-income renters. Over one-third of renters of manufactured homes earn less than 

$20,000 per year and over three-quarters earn less than $50,000 per year.

Income Distribution* of Manufactured vs 

Site-Built Homeowners

Source: 2017 American Community Survey, Note: Includes owners without mortgages * Note: K=$1,000 therefore $20K = $20,000

Income Distribution* of Manufactured vs 

Site-Built Renters

0%

5%

10%

15%

20%

25%

30%

35%

Less than $20K

$20K to $30K$30K to $39K$40K to $49K$50K to $59K

$60K-$79K$80K-$99K

$100K or more

Manufactured Home Owners

Site-Built Owners

More Affordable All-In Housing Costs

The median monthly all-in cost to own or rent a manufactured home is lower than for a site-built home. The median allin monthly housing cost of $925 per month for manufactured home owners was $675 per month less than that paid by 

owners of site-built homes. The all-in cost was $350 per month less for renters of manufactured homes.

 $600

 $1,100

 $1,600

2005 2007 2009 2011 2013 2015 2017

Manufactured Site-Built

Monthly All-In Housing Cost* of Manufactured vs 

Site-Built Homeowners

Source: 2018 American Community Survey, 

* Note: Excludes owners without mortgages

 $500

 $700

 $900

 $1,100

 $1,300

2006 2008 2010 2012 2014 2016 2018

Manufactured Single Family

Monthly All-In Housing Cost* of Manufactured vs 

Site-Built Renters

Source: 2018 American Community Survey, 

* Note: Excludes non-cash renters who may contribute 

services in place of rent or may not pay rent.

Manufactured Housing Landscape 2020
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Manufactured Housing Landscape 2020

New Manufactured Homes More Affordable 

than Site-Built Homes

One solution to addressing the nation’s housing supply 

shortage is to build more homes. New factory-built 

manufactured homes, which can be built as single- or 

multiple-section homes, appear to be significantly more 

affordable than site-built homes. 

The average sales price of a new manufactured home built 

and shipped in 2018 was less than half of the sales price of a 

new site-built home: $79,000 for the average new 

manufactured home compared to almost $300,000 for the 

average new site built-home, excluding land costs. This 

translates to $55 per square foot for a manufactured home 

compared to $114 per square foot for a site-built home. 

The cost for a single-section manufactured home was even 

lower, at just $49 per square foot compared to $125 per 

square foot for a similarly sized site-built home.

New Manufactured Homes Have Additional 

Costs

Manufactured homes do have additional costs compared to 

a site-built home. For instance, new manufactured homes 

cost about $5,000 per section to ship, in addition to costs for 

installation and utility hookup. According to Next Step 

Network, a non-profit specializing in manufactured homes, 

the all-in cost to deliver, set, and finish a manufactured 

home can range from $21,000 for a single-section home to 

$34,000 for a double-section home. However, even when 

including these costs, a new site-built home is still more 

than 85% more expensive than a comparable single-section 

manufactured home and 36% more expensive than a 

double-section home.

Source: U.S. Census Bureau Manufactured Housing Survey for 

Manufactured Homes, RS Means. 

*Excludes imputed land costs

** RS Means construction cost data used to estimate the sales 

price for new site built homes with 1,072 and 1,747 square feet. 

The actual sales price is likely higher due to the fact the builder 

will add a profit margin at the sale of the new home to the 

consumer.

New 

Manufactured 

Homes*

New Site-Built 

Homes**

All

Average (Avg.) 

Sales Price $ 78,500 $ 298,000 

Average Square 

Feet (sf) 1,438 2,602 

Avg. Cost per sf $ 54.59 $ 114.43 

Single -

Section

Avg. Sales Price $ 52,400 $134,400

Avg. sf 1,072 $1,072

Avg. Cost per sf $ 48.88 $125.37

Double -

Section

Avg. Sales Price $ 99,500 $179,600

Avg. sf 1,747 1,747

Avg. Cost per sf $ 51.26 $102.79

Select Pricing Statistics 

Manufactured and Site-Built Homes

Average Cost to Deliver, Set and Finish a Home

Average Cost

Single-Section $21,000

Double-Section $34,000

A manufactured home can also be built very quickly. According to one manufactured home producer, it takes about six

production days to complete a typical home. While delivery and installation require additional time, a homeowner is

generally living in a manufactured home within 90 days. By contrast, a site-built home can take up to six months to

construct. These factors can make manufactured homes an attractive alternative for some homebuyers. The

compressed construction cycle also makes it attractive to some developers and builders.

Source: Next Step Network

Note: Excludes foundation and garage
Production Concentrated

Industry capacity has declined since the 1990s. In 2019, just 35 manufactured home companies had 133 production 

lines, and the top three manufacturers produced three-quarters of new homes. Even so, manufacturers have some 

excess capacity: One of the nation’s largest manufactured home producers, Skyline Homes, Inc., currently has five 

idle plants, according to a recent investor presentation. Additionally, the number of construction workers is 5% 

below the level seen a decade ago. Another large manufactured home producer, Cavco Industries, Inc., estimates 

that a single factory may need up to 400 construction workers. As a result, increased labor, automation, and 

innovation may be needed to address the backlog of orders listed in these companies’ 2019 10-K financial reports.

Zoning Restrictions an Impediment

Local zoning requirements may also be contributing to the decrease in shipments of manufactured housing. Despite 

the cost advantages of manufactured homes, many municipalities are increasingly using zoning and other land use 

regulations to restrict or eliminate the number of manufactured homes located within their boundaries, which likely 

dampens demand for manufactured homes. Zoning restrictions take several forms, including the complete exclusion 

of manufactured homes or the exclusion of manufactured homes from single-family residential zones. Other zoning 

restrictions impose minimum lot-size requirements specific to manufactured homes, which force these homes onto 

more rural, less dense areas. This can affect shipment of new homes by making it harder to find a location for a 

manufactured home. 

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295,000

353,000

50,000

95,000

0%

5%

10%

15%

20%

25%

30%

35%

40%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0 MH Shipments

MH Share of All Homes Sold

New Manufactured Homes Shipped (100,000s) and Manufactured Home 

Shipments As a Share of All Homes Sold (1980–2019)

Source: Manufactured Housing Institute

Average Annual Home Shipments 

since 1980: 185,000

Manufactured Housing Landscape 2020

The Number of Manufactured Homes Shipped in Long-Term Decline

The number of new manufactured homes ordered and shipped has declined substantially over the past 20 years and hit a 

low of just 50,000 homes shipped after the recession ended in 2009. While the number of homes purchased and shipped 

increased as the economy rebounded, the level of shipments remains depressed. An estimated 95,000 new manufactured 

homes shipped in 2019, which is well below the long-term average since 1980 of 185,000 homes. The share of 

manufactured homes compared to all homes sold currently stands at 14%, which is below the 25-30% range recorded 

prior to 2000.
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Manufactured Housing Landscape 2020

18.8% 20.0% 21.6% 19.3% 15.7% 19.0% 19.3%

0%

10%

20%

30%

40%

50%

60%

70%

2012 2013 2014 2015 2016 2017 2018

Texas Florida North Carolina Alabama

Louisiana Michigan South Carolina California

Georgia Mississippi

Source: U.S. Census Bureau Manufactured Housing Survey

10 States with the Highest Share of Shipments (2012-2018)* Shipments Growing More Concentrated

Nevertheless, certain states are more favorably 

disposed to manufactured homes. With the 

exception of California and Michigan, these states 

are predominantly located in the south. Texas 

generally receives the largest share, accounting 

for about a fifth of new home shipments annually. 

In fact, shipments to favorably disposed states 

have grown more concentrated. The top 10 states 

accounted for 62% of annual shipments in 2018, 

up from 54% just six years prior. Only one state in 

the top ten, Louisiana, saw a decline in shipments, 

to 5.0% in 2018 from 7.4% six years prior. 

New Hampshire

Virginia Oklahoma

Idaho

New Mexico

Colorado

Maine

Pennsylvania

Minnesota

Illinois

Nevada

New Jersey

Arkansas

Wisconsin

Missouri

Kentucky

Louisiana

Tennessee

Indiana

Washington

Arizona

Ohio

Oregon

Mississippi

Georgia

North Carolina

South Carolina

California

Alabama

Michigan

Florida

0%

50%

100%

150%

200%

250%

300%

350%

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

Growth in Shipments 2012-2018 (%)

Number of Shipments in 2012 (#)

Texas* shipped over 19,300 homes in 

2018 compared to 18,800 in 2012.

Growth in Shipments Since 2012 vs Number of Annual Shipments in 2012 for Select States*

(Size of Bubble Represents the Total Number of Homes Shipped 2012-2018)

Source: U.S. Census Bureau Manufactured Housing Survey

* Notes: Chart excludes Texas which shipped over 19,300 new homes in 2018 to present clarity around other states.

Excludes states with fewer than 100 Shipments in 2012: Rhode Island, Hawaii, Massachusetts, Connecticut

Excludes states with fewer than 200 total units shipped 2012-2018: Kansas, New York, West Virginia, Utah, Delaware, Iowa

Excludes states where shipments have declined including: North Dakota, Wyoming, South Dakota, Maryland, Montana, Nebraska and Vermont

Southern States Lead in Shipment Increase

Annual shipments have rebounded since bottoming out at 50,000 in 2010. In fact, shipments to many states have 

doubled over the past six years. However, even with shipments more than doubling, states such as Nevada, Oregon, 

New Jersey, and Wisconsin still receive fewer than 500 homes annually. Most states with substantial growth in the 

number of shipments are southern states such as Florida, Alabama, and Mississippi. Michigan and California were the 

only states outside of the south to have a substantial increase in both the percentage and number of shipments.
6

Home Title Affects Financing Options

Factory-built homes built to HUD Code may be titled as either personal property, known as chattel, or real property. 

How manufactured homes are titled affects the available options for financing. Structures titled as personal property 

are only eligible for chattel financing, while structures titled as real property may be financed through conventional 

mortgage loans. Many factors might impact a borrower’s decision for titling and financing a manufactured home, 

including personal credit scores, the recommendations of a buyer’s broker or seller, and even the desire to leave 

recordation of the home and land separate. The vast majority of manufactured homes are classified as personal 

property, which limits the owners of these homes to chattel financing.

Manufactured Housing Landscape 2020

67% 66% 66% 68% 63%

33% 34% 34% 32% 37%

2014 2015 2016 2017 2018

Private Property Community

New Manufactured Homes Placed for 

Residential Use by Location (2014-2018)

Share of Manufactured Homes Placed in 

Communities is Rising

Manufactured homes can be placed on privately owned land or 

placed in communities where homeowners rent a pad-site from 

the community for a monthly fee. These pads also contain 

hookups for utilities. According to Sun Communities, Inc., one of 

the nation’s largest manufactured home community owneroperators, over the past three years, homes placed in their 

communities were only moved out at a rate of 0.8% per year on 

average. 

Communities are generally classified either as an All Ages 

Community or a 55+ Community, the latter of which is popular 

with retirees who want to downsize and minimize home 

maintenance. Over the past five years, of all shipments, the share 

of homes shipped to communities has risen from 33% to 37%. Source: U.S. Census Bureau Manufactured Housing Survey

Chattel Financing Can be More Expensive

In general, lenders consider chattel – or “home only” – lending to be riskier since 

the loan is only secured by the home, whereas a conventional loan is secured by 

both the land and the home. Data collected under the Home Mortgage Disclosure 

Act (HMDA) in 2018 suggests that interest rates charged for loans secured only by a 

manufactured home are higher on average than for a conventional mortgage loan. 

In 2018, the average interest rate for loans backed only by the manufactured home 

was 8.5%, compared to 4.7% for loans on site-built single-family homes and 5.4% 

on loans secured by both the manufactured home and the land on which the home 

is located. In addition, loan terms are generally 20 years instead of the typical 30 

years for fixed-rate mortgages, which increases the monthly payment. Certain 

chattel financing products may have fewer consumer protections than mortgage 

loans. Even so, some consumers prefer chattel lending because transaction costs 

for chattel lending are the time to close the loan is generally faster for chattel.

Source: HMDA 2018 Single Family, 

1st Lien originations excluding 

improvement loans and origination 

rates over 20%.

Average Origination Rates by 

Property Type (2018)

Average 

Origination 

Rate

Single-family 

(1-4 units) 4.7%

Manufactured 

home titled as 

real estate

5.4%

Manufactured 

home titled as 

personal 

property

8.5%
Manufactured Housing Landscape 2020

Local Zoning Has Not Kept Pace with Innovations

Some local zoning barriers for manufactured homes are rooted in a preference for municipalities wanting to maintain 

certain aesthetics that are typical of traditional, site-built homes. Recent innovative designs have made some 

manufactured homes conforming to the HUD Code visually indistinguishable from site-built homes. These types of 

manufactured homes may have high-pitched roofs, front porches, and decorative windows and trims. In addition, a 

recent report from the Federal Housing Finance Agency suggests that manufactured homes affixed to land may 

appreciate at rates similar to site-built homes, better enabling low- and middle-income families to realize the 

potential wealth-building benefits of homeownership. Despite this progress, not all state and local regulations have 

kept up with recent developments.

Extreme Job Loss from Covid-19 Expected to Have a Detrimental Impact on Supply...

It is estimated that over a seven-week period ending May 2 2020, over 33 million people filed for unemployment 

benefits, representing more than 20% of the workforce. Unsurprisingly, manufactured home builders have not been 

immune to the effects of job loss. Factories are starting to report the cancellation of orders for new homes.

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Fewer Homes Eligible for 

Conventional Financing

Even homes placed on private land 

frequently use chattel financing. In fact, 

while over three-quarters of new 

manufactured homes shipped are placed 

on private land, one-fifth are titled as real 

estate, indicating that these homeowners 

used cash or chattel financing to 

purchase their homes.

80% 80% 77% 76% 77%

13% 14% 17% 17% 17%

2014 2015 2016 2017 2018

Personal Property Real Estate Not Available

Source: U.S. Census Bureau Manufactured Housing Survey

New Manufactured Homes Placed for Residential Use by Type of Title 

(2014-2018)

In addition, manufacturers are expecting lower output due to 

a variety of other factors. Next Step Network recently 

surveyed manufacturers to provide insight into emerging 

trends. Respondents reported working with 22% fewer staff 

on average and all reported complying with social distancing. 

These two factors are expected to slow output. Manufacturers 

also indicated that they are concerned about a disruption in 

the supply chain for the materials they use to construct 

homes, such as lumber, drywall, and fixtures, among other 

items. As a result, many respondents estimated production 

would likely be reduced in the coming months. While about 

half of respondents estimated a reduction of 20% or less, 

approximately one-fifth estimated production could decline 

by over 30%.

22%

34%

22% 22%

5% to

10%

10% to

20%

20% to

30%

Over 30%

decline

Source: Next Step Network

Expected Decline in Manufacturer Output
Manufactured Housing Landscape 2020

...and Will Likely Reduce Demand for New Homes

Manufactured homes built to the HUD Code are generally sold by retailers that have showrooms with display models for 

consumers to view. Next Step Network also recently conducted a survey of retailers. While this data is limited, it does 

provide an insight into recent trends. Respondents indicated that measures have been taken to comply with state/local 

ordinances related to COVID-19 mitigation, with over 60% restricting business hours, reducing or altering staff hours to 

maintain social distancing, and requiring an appointment. More than 70% of respondents expect to sell fewer homes in 

the coming months. Of those, 88% expect up to a 30% decline in home sales. 

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Retailers Using Virtual Tours

Manufactured housing retailers are increasingly using technology to close deals in their pipelines and to offset the 

decrease in foot traffic. Nearly 59% of respondents reported an increase in traffic to their website and that visitors are 

staying online longer. Thirty-two percent of survey respondents indicated increasing paid digital advertising showcasing 

homes and over 80% reported using online virtual walk-throughs and other digital tools. However, it remains to be seen 

if an increase in online traffic is sufficient to make up for the decline in buyers from brick-and-mortar retailers.

Source:: https://nextstepus.org/wp-content/uploads/2020/04/Summary-of-COVID19-Impact-Survey_2020.pdf

Note: Based on responses from 36 retailers across 16 states representing 57% of states receiving new home shipments in 2019

Tabulation of Manufactured Housing Retailer Responses to Next Step Network COVID-19 Survey

Sell more 

homes

6% No 

Change

23%

Sell fewer 

homes

71%

Demand in Texas Likely Impacted by 

Oil Prices

We expect that demand in Texas, which 

receives about 20% of shipments of new homes 

annually, will likely decline due to the 

oversupply of oil at a time when there is 

reduced consumer and industry demand for 

energy. According to the first quarter Dallas 

Federal Reserve Energy Survey, two -thirds of 

support services firms and 45% of exploration 

and production firms expect to reduce 

employee counts in 2020, likely contributing to 

a dampening of demand for new manufactured 

housing.

0%

10%

20%

30%

40%

50%

Decrease

significantly

Decrease

slightly

Remain the

same

Increase

slightly

Increase

significantly

All Firms

Exploration and

Production

Support Services

Source: Federal Reserve Bank of Dallas, Energy Survey as of Q1 2020

Share of Respondents That Expect to Change Staffing 

Levels in 2020
Multifamily Economic and Market Commentary

Tanya Zahalak

Senior Multifamily Economist

Multifamily Economics and Research

May 15, 2020

Opinions, analyses, estimates, forecasts, and other views of Fannie Mae’s Multifamily Economics and Research Group (MRG) included in these materials

should not be construed as indicating Fannie Mae’s business prospects or expected results, are based on a number of assumptions, and are subject to

change without notice. How this information affects Fannie Mae will depend on many factors. Although the MRG bases its opinions, analyses, estimates,

forecasts, and other views on information it considers reliable, it does not guarantee that the information provided in these materials is accurate,

current, or suitable for any particular purpose. Changes in the assumptions or the information underlying these views could produce materially

different results. The analyses, opinions, estimates, forecasts, and other views published by the MRG represent the views of that group as of the date

indicated and do not necessarily represent the views of Fannie Mae or its management.

9

Manufactured Housing: A Source of Affordable Housing

Factory-built manufactured homes meeting the HUD Code standard have substantially lower all-in monthly housing 

costs than site-built homes. As a result, it is important to preserve this source of unsubsidized housing for lowerincome residents. In addition, factory-built manufactured housing is an affordable option for buyers desiring a new 

home. Notwithstanding a likely short-term decline in manufacturing from the impact of COVID-19, if the industry is 

able to increase the shipments of manufactured homes to the 30-year long-term annual average of 185,000 units, 

manufactured housing could meaningfully increase the nation’s housing supply. However, this would entail other 

wide-ranging changes. Changes that may be needed to reach this level of manufactured housing supply include local 

zoning changes, further innovations in the manufactured housing construction process, changes in the titling 

process, improved access to affordable financing, and even likely increasing the number of manufactured housing 

servicers. 

95,000

25,000

82,000 77,000

2019 Shipments Jan-Mar 2020 Base Case* Slower Recovery*

Projected Shipments 2020

Source: U.S. Census Bureau Manufactured Housing Survey, * Next Step Network 

estimates based on individual stakeholder interviews and survey responses 

from 400+ retailers nationwide. 

Reduction in Shipments Expected

With the likely fallout from manufactured housing 

builders’ pipelines and a likely net reduction in new 

orders for manufactured housing, shipments in 2020 

are likely to decline from the estimated 95,000 homes 

shipped in 2019. According to estimates from Next Step 

Network, manufactured housing shipments may 

decline to 82,000 units in 2020, but could decline even 

further to an estimated 77,000 units should the 

economy recover more slowly than currently 

anticipated.