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 grows as an affordable option amid expanded lending and a production rebound — but investor-owned parks and rent hikes raise displacement and protection concerns
Key point: As many parts of the country face a home affordability crisis, factory-built manufactured homes are becoming a more practical and lower-cost path to ownership thanks to better-quality product and wider lending programs. At the same time, the increasing role of large investors buying manufactured-housing communities has led to steep lot-rent increases and legal disputes that spotlight gaps in tenant protections.
Top developments: lending, quality and production
Federal and government-backed lending programs now make conventional loans for modern manufactured homes broadly available. A nationwide lending program from a federal agency launched this spring after an earlier pilot, and two government-sponsored enterprise programs also offer manufactured-home loans with competitive interest rates and low downpayment options. These programs require homes to meet specific federal construction and safety standards and come with unique documentation rules, including a special appraisal form and verification steps when factory tags or data plates are missing.
Product quality has improved significantly. New manufactured homes are described as higher-quality and more energy efficient than older models, often featuring elements familiar from site-built houses — front porches, garages, pitched roofs and open floor plans — while selling for a fraction of the per-square-foot cost of traditional single-family homes.
Numbers that matter
- More than 22 million Americans live in manufactured homes.
- Manufactured housing accounts for about one in 10 new homes built nationwide each year.
- The average cost per square foot for a manufactured home is roughly $87, versus about $166 for a site-built home — roughly half the cost per square foot.
- Factory shipments peaked at an annualized rate near 122,000 units in March 2022, fell with rising interest rates, and rebounded to about 103,300 units in 2024 and an annualized pace near 106,000 by May 2025.
- Average sale price for a manufactured home in 2024 was about $123,300; the median single-family home value used for comparison was about $367,282. The manufactured-home figure excludes land value.
Where manufactured housing matters most
Manufactured housing is especially common in the U.S. South. Texas, Florida and North Carolina led total shipments in 2024, while several states — including Mississippi, Kentucky, Louisiana and West Virginia — saw manufactured homes make up large shares of all new single-family housing. Many of the states with the highest manufactured-home shares also rank near the bottom in overall housing construction, underscoring the role of factory-built housing in lower-construction markets.
Affordability plus vulnerability: the land-lease model
A large share of manufactured-home owners live on land they do not own. For many, a land-lease community model historically provided an affordable route to homeownership: lower monthly costs and long resident tenure. But that same model creates vulnerability because the homeowner typically does not control the land beneath the unit.
When small, locally owned communities are sold to large out-of-state investors or private-equity buyers, residents frequently report rapid lot-rent hikes, added fees, infrastructure problems and lease nonrenewals. The business model for some investor-owned communities depends in part on the fact that many older homes are not practically movable, creating a captive market for lot rent and services.
Investor purchases and resident impacts
Institutional investors ramped up purchases of manufactured-housing communities in recent years, buying large numbers of lots and communities. Some owners say investments in infrastructure and amenities follow acquisitions, while residents and advocates report frequent and steep rent increases, new fees, and legal battles over lease renewals and retaliatory rent hikes. In several reported cases, long-term residents living primarily on fixed incomes faced rent increases or notices that could force them to leave their homes — moving which can cost thousands of dollars and, in some cases, is not even feasible because older units cannot legally be moved.
Legal protections and gaps
Protections for manufactured-home residents vary widely by state. Some jurisdictions offer tenant-rights tools such as first-right-to-purchase laws, but those laws often prioritize procedural fairness rather than guaranteeing residents the ability to outbid investor buyers. Federal steps have added limited protections for residents in communities tied to certain government-backed financing, but many residents remain outside that safety net. Advocates and some researchers argue that stronger, nationwide measures would be needed to limit disruptive rent spikes as a condition of financing or ownership change.
Challenges for lenders and buyers
Manufactured-home lending has some special hurdles. Lenders must follow federal construction standards and handle unique appraisal and documentation requirements. Finding comparable sales can be difficult in many markets, complicating underwriting. Still, lenders that build consistent processes and work with experienced partners can find a niche: relatively few loan officers currently offer manufactured-home products, leaving room for specialists to capture meaningful volume.
Supply, zoning and stigma
Supply constraints persist. Local zoning often limits new manufactured-housing communities, and negative stereotypes have long suppressed wider acceptance. Factory construction reduces costs through controlled production, smaller sizes, and mass purchasing, but many communities remain decades old and sit on lower-valued parcels that kept lot rents down — a dynamic that changes once larger investors step in.
Bottom line
Manufactured housing is playing a growing role in addressing housing affordability through improved product quality, expanded lending and a partial production rebound. However, the shift toward institutional ownership of manufactured-housing communities raises urgent questions about rising lot rents, resident displacement, inconsistent legal protections and the need for better data on transactions and outcomes. Policy choices, lender practices and community-level protections will help determine whether manufactured housing remains a stable path to affordable homeownership or a source of new displacement risks.
Frequently asked questions
What is a manufactured home?
A manufactured home is factory-built to federal construction and safety standards, transported to a site and installed. Modern models can resemble traditional single-family homes and often include features like porches, garages and open floor plans.
How much do manufactured homes cost compared with site-built homes?
On average, manufactured homes cost about $87 per square foot versus about $166 per square foot for site-built homes. Average sale prices and comparisons vary by region and whether land is included.
Are there loans specifically for manufactured homes?
Yes. Federal and government-backed programs now support manufactured-home lending nationally, and two government-sponsored enterprise programs make conventional manufactured-home loans broadly available. These loans carry specific documentation and eligibility rules.
Why are residents worried about investor ownership of communities?
When investor groups buy communities, residents often report rapid lot-rent increases, added fees, infrastructure problems and more frequent lease nonrenewals. Many homeowners do not own the land under their home, which makes them financially vulnerable.
What protections exist for manufactured-home residents?
Protections vary by state. Some places have tenant purchase rights or notice requirements tied to certain financing. Federal rules cover only some transactions. Advocates say stronger, more consistent protections are needed.
Can manufactured homes be moved?
Some newer manufactured homes can be moved, but about one-third of the stock is too old or damaged to be legally or practically relocated. Moving costs can be substantial.
Key features at a glance
| Feature | Detail |
|---|---|
| Typical cost per sq. ft. | $87 (manufactured) vs $166 (site-built) |
| Average sale price (2024) | $123,300 (manufactured home, excludes land) |
| Production trend | Peak annualized shipments ~122,000 (Mar 2022); ~103,300 shipped in 2024; ~106,000 annualized by May 2025 |
| Population served | More than 22 million people live in manufactured homes |
| Lending programs | New federal program plus government-sponsored enterprise options with eligibility rules and special documentation |
| Primary risks | Rising lot rents, fee increases, lease nonrenewals, uneven state protections, limited mobility of older units |
| Top regional presence | High concentration in Southern states, with Texas, Florida and North Carolina among leaders in shipments |
| Policy needs | Stronger tenant protections, better data on community transactions, and zoning reforms to expand supply |
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 NY News
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