Manufactured homes: A potential solution to the affordable housing crisis

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Published Date 9/10/2024

Tiny homes. Affordable housing projects. When it comes to solving America’s dilemma of affordable living, however, we may or may not think about manufactured home communities. In some parts of the U.S., they present a mixed picture when it comes to climate resilience and affordability.

Iowa Public Radio’s Holly Edgell and Colson Thayer report that in Dubuque, Iowa, the aging Terrace Heights community struggles with high utility bills and vulnerability to extreme weather, while older "mobile homes" often lack modern features.

However, the Department of Housing and Urban Development (HUD) is touting a new generation of manufactured homes as a solution to the affordable housing crisis. These "manufactured homes" feature modern amenities like granite countertops and customizable floor plans, yet are significantly cheaper than traditional site-built homes.

According to Edgell and Thayer, the average price of a new manufactured home is around $127,250, compared to $230,000 for a site-built home in Dubuque. “This makes them an appealing option for first-time and low-income homebuyers.”

Unlike stick-built varieties, manufactured homes are built in factories and transported, allowing for cost savings and uniform quality control through the HUD Code. “This federal set of standards, established in 1976, ensures manufactured homes meet requirements for safety, durability, and energy efficiency,” says the reporters. “The code is now being updated for the first time in decades, with new provisions for climate resilience, such as improved insulation and moisture barriers.”

In rural and tribal areas, manufactured homes make up 15-17% of the housing stock, providing an important affordable option. And unlike older "mobile homes," modern manufactured homes are eligible for traditional home loans. The current administration is showcasing these newer, more advanced manufactured homes on the National Mall, hoping to change perceptions and attract more buyers.

While the older mobile home communities still struggle, the emergence of climate-resilient, amenity-rich manufactured homes offers hope for addressing the affordable housing crisis. By meeting modern standards and providing homeownership opportunities, this innovative housing type could be a game-changer, especially for low-income and first-time buyers.

As the 2024 State of the Nation's Housing report from Harvard notes, manufactured homes represent "a well-established affordable building technique with costs as low as 35% of an equivalent site-built home." With the HUD Code updates, we may see manufactured housing brought into the 21st century to provide a path to sustainable, affordable homeownership for more Americans.

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