United States, September 5, 2025
News Summary
Manufactured housing is emerging as a lower-cost, faster-built alternative for buyers priced out of traditional homes. Improved lending channels, including USDA and government-sponsored programs, plus rising factory output, have expanded access to modern manufactured homes that often include site-built features at far lower cost per square foot. At the same time, growing investor and private-equity purchases of manufactured-home communities have led to complaints about lot-rent hikes, new fees and displacement risks for residents who don’t own the land. Policymakers and advocates are calling for stronger tenant protections, better data transparency and clearer oversight.
Manufactured housing expands as affordable option even as park ownership changes spark displacement concerns
A nationwide affordability squeeze is leaving many potential buyers shut out of the traditional housing market, and manufactured housing has moved into the spotlight as a lower‑cost alternative. New lending programs and a rebound in factory production have broadened access to modern, higher‑quality factory‑built homes, but steep lot‑rent hikes and investor purchases of manufactured‑housing communities are raising serious consumer‑protection and displacement concerns.
Top line: supply, financing and a rising conflict over land rents
Factory production of manufactured homes recovered after early pandemic disruption and reached an annualized peak of about 122,000 shipments in March 2022. Production dipped with rising inflation and mortgage rates, then rebounded: roughly 103,300 units were shipped in 2024 and the annualized pace climbed to around 106,000 by May 2025. At the same time, federal and government‑sponsored mortgage programs have made loans for these homes more available nationwide, giving buyers new financing options.
Why manufactured homes are drawing attention now
Modern manufactured homes are built in factories under federal safety and construction rules and then installed on site. Today’s models often include features found in site‑built houses—front porches, garages, pitched roofs and open floor plans—while selling at far lower cost. On average, manufactured homes cost about $87 per square foot, roughly half the typical $166 per square foot for site‑built construction. The average sale price of a manufactured home in 2024 was about $123,300, versus a median single‑family home value of $367,282 when that figure includes land.
New and expanded lending
The U.S. Department of Agriculture rolled out a nationwide manufactured‑home lending program after piloting it in many states. In addition, large mortgage buyers offer specialized products: one conventional program and another counterpart have made manufactured‑home loans more widely available with competitive rates and low downpayment options, although both include program restrictions. Factored requirements include meeting HUD construction and safety standards, and many loans require specific appraisal paperwork such as the 1004C form. Lenders must also verify HUD tags and data plates through the recognized verification source when those items are missing.
Production trends and geography
More than 22 million Americans live in manufactured homes, and these homes account for about one in 10 new homes built each year. Production is concentrated in the South: Texas led total shipments in 2024 with over 18,000 units, followed by states such as Florida and North Carolina. When measured as a share of new single‑family housing, Mississippi, Kentucky, Louisiana and West Virginia ranked highest, reflecting the product’s regional significance and a faster stabilization of factory output than site‑built starts.
Financing and underwriting hurdles
Lenders say manufactured‑home programs are manageable with consistent processes and experienced correspondent partners, and specialization can yield meaningful volume since few loan officers currently offer these loans. Still, underwriting can be more complicated: appraisers often struggle to find comparable sales, and the product requires distinct documentation and inspections. HUD updated its construction and safety standards last fall and delayed the effective date to give manufacturers and stakeholders more time to comply.
Investor ownership, lot rents and resident vulnerability
Manufactured‑housing communities are the largest source of non‑subsidized affordable housing in the U.S., but many residents do not own the land under their homes. A substantial shift of parks into the hands of institutional buyers and private equity has accelerated in recent years. Institutional buyers made a larger share of purchases in 2020–2021 than earlier in the decade, and estimates suggest investors purchased hundreds of thousands of lots between 2014 and 2022. High‑profile owners include long‑running industry players and major real estate investors.
Where small, family owners once ran many parks, out‑of‑state investors now often pursue an acquire‑and‑improve model. Residents and advocates report rapid lot‑rent hikes, new fees, infrastructure problems and lease nonrenewals after ownership changes. In some cases, regulators have found unlawful rent increases or retaliatory actions, and disputes over repairs, billing and refunds remain unresolved in many places.
Case examples and legal tools
Resident groups have used tenant purchase laws in some states and gathered nonprofit support to try to buy parks, but these efforts frequently lack the capital to outbid institutional bidders. Federal agency rules have introduced some protections—such as notice requirements tied to certain financing—but those protections apply only to specific transactions and leave many residents uncovered. State protections vary widely, and in many states residents can face lease nonrenewal without cause.
What this means going forward
Manufactured housing presents a viable path to more affordable homeownership for millions, with increasing lender programs and improving product quality. Yet the land‑lease model and the growing role of institutional owners create a tension: expanded supply and finance can increase access, while rising lot rents, weak state protections and limited national data leave many residents exposed to displacement. Policymakers, lenders and park owners face pressure to balance investor returns, property upgrades and tenant protections if the product is to scale without displacing longtime residents.
Experts and sources
Analysis and reporting underpinning these findings draw on federal housing surveys, industry shipment data, home‑value measures and research by academic, policy and advocacy experts. Researchers, nonprofit advocates, housing attorneys and industry representatives have all weighed in on the mix of opportunity and risk inherent in the manufactured‑housing sector.
Frequently Asked Questions
What is a manufactured home?
A manufactured home is a factory‑built dwelling constructed under federal safety and construction standards, transported to a site, and installed there. Modern models often resemble site‑built houses in appearance and amenities.
How much cheaper are manufactured homes?
On average, manufactured homes cost about $87 per square foot, compared with roughly $166 per square foot for traditional site‑built homes. Average sale price figures and whether land is included vary by data source.
What lending options are available?
USDA rolled out a nationwide manufactured‑home lending program, and large mortgage buyers offer specialized conventional programs that expand access to loans with competitive rates and low downpayments, subject to program rules and home eligibility.
What paperwork or inspections are unique to manufactured‑home loans?
Manufactured‑home loans often require a specific appraisal form (the 1004C), verification of HUD tags or data plates, and professional inspections to confirm compliance with construction standards and program rules.
Why are residents worried about investor ownership of parks?
When parks change hands from small owners to institutional investors, residents report sharp lot‑rent increases, fee additions and lease changes. Many homeowners do not own the underlying land, making them vulnerable to displacement and costly moves.
Are there protections for manufactured‑home residents?
Protections vary by state. Some federal rules and state tenant purchase laws provide limited safeguards, but gaps remain and coverage often depends on the type of financing or the jurisdiction.
Key features at a glance
| Feature | Details |
|---|---|
| Cost per square foot | $87 for manufactured homes vs $166 for site‑built (average figures) |
| Average sale price (2024) | $123,300 (manufactured homes; excludes land) |
| Production peak | Annualized ≈ 122,000 shipments in March 2022; ≈ 106,000 by May 2025 |
| Population | More than 22 million Americans live in manufactured homes |
| Financing | USDA nationwide program plus specialized conventional programs available; specific appraisal and HUD compliance required |
| Risk factors | Land‑lease vulnerability, uneven state protections, investor purchases and lot‑rent increases |
Deeper Dive: News & Info About This Topic
Additional Resources
- AZ Big Media: Arizona ranks No. 14 for new manufactured housing
- Wikipedia: Manufactured home
- ProBuilder: U.S. states seeing manufactured housing grow the fastest
- Google Search: manufactured housing investor-owned parks
- Multi-Housing News: Why manufactured housing isn’t the last resort
- Google Scholar: manufactured housing investor ownership displacement
- Planetizen: Manufactured crisis — losing nation’s largest source of unsubsidized affordable housing
- Encyclopedia Britannica: Manufactured housing
- GlobeSt: Manufactured housing outperforms in CRE market
- Google News: manufactured homes investors lot rents
Author: Construction TX News
TEXAS STAFF WRITER The TEXAS STAFF WRITER represents the experienced team at constructiontxnews.com, your go-to source for actionable local news and information in Texas and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Texas Construction Expo, major infrastructure unveilings, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of Texas and the Texas Building Branch, plus leading businesses in construction and real estate that power the local economy such as Austin Commercial and CMiC Global. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
