What realistic, visionary and sensible players in the US housing industry believe is that some solutions are already here, hidden in plain sight.
Part of the problem is that what often obscures these solutions from view is a past, baggage, or a hint of negative reputation.
Manufactured homes are one of them.
And because of its relatively low cost, portability and scalability, this category is becoming an increasingly important part of the national discussion about housing affordability.
However, manufactured housing has struggled to gain significant market share recently due to persistent, negative and outdated stigmas.
The administration could soon support the manufactured housing sector, as lawmakers in Washington and state capitals increasingly view manufactured communities as a critical part of any affordable housing solution.
However, policy changes alone will not be enough to change public opinion.
To dispel these misconceptions, the industrial housing industry is going beyond traditional marketing campaigns and focusing more on innovation. By offering a broader range of models and floor plans that meet consumer expectations and budgets, major homebuilders are betting they can grow their market share and expand their reach.
A federal effort to streamline manufactured housing development
A recent report of the National Association of Home Builders explains what qualifies as manufactured housing.
“Manufactured homes are a specific type of factory-built homes that meet the U.S. Department of Housing and Urban Development’s (HUD) Manufactured Home Construction and Safety Standards code. To qualify, a manufactured home must be a ‘movable dwelling, 8 feet or more wide and 40 feet or more long, built on a permanent chassis.'”
Manufactured housing plays a key role in the federal government’s efforts to improve housing affordability. The Housing for the 21st Century Act, which was overwhelmingly approved by the House of Representatives in February, would eliminate the permanent chassis requirement, potentially reducing construction costs for each manufactured home by as much as about $5,000.
The legislation would also make it easier to develop manufactured housing by designating HUD as the primary federal regulator for manufacturing standards and safety.
The bill’s supporters say these changes could reduce the cost of manufactured housing by an additional $10,000.
A lingering perception problem
The Manufactured Housing Institute reports that newly manufactured homes cost less than one-third the price of site-built homes. These homes are often high-quality, but manufactured housing has not gained much momentum in recent years, in part because the industry is still grappling with a lingering perception problem.
Manufactured Home Shipments reached a high of 373,000 in 1998. At the time, they accounted for about 23% of new single-family housing, but this changed significantly around the turn of the century. In 2024, there were only about 103,000 manufactured housing deliveries, representing 9% of single-family housing starts.
Although newly manufactured communities offer high quality design, a strong NIMBY effect still hinders the industry. Neighbors often worry that manufactured communities will be ugly, dangerous, or will damage local property values.
As a result, obtaining rights for manufactured housing in many markets can be a challenge, said Gene Kim, Executive VP of CRE Strategies at Ascent Developer Solutionstold earlier The builder’s newspaper.
Even when manufactured homes are approved and entitled, convincing buyers to purchase these homes can still be difficult. The US Census Bureau‘2025 Manufactured housing research showed that manufactured homes and site-built homes increased in value at the same rate between 2000 and 2025. However, many buyers still believe that these homes do not increase in value as quickly as traditional homes.
“When people often talk about mobile home parks, they often think of a 1960s mobile home park. But the communities that are being delivered today are of much higher quality. It’s almost necessary to have a separate asset class and asset theme category because the quality is so high, both in the community in general and the quality of the homes,” Kim said.
Building trust in manufactured housing
Building trust and correcting misconceptions are key goals for the industrial housing industry. Clayton Housesa major manufacturer of manufactured and modular homes, has launched several marketing campaigns over the years to promote manufactured homes and directly challenge these stereotypes.
The builder’s “Have it Made campaign” aired commercials during major sporting events highlighting its innovative, affordable manufactured housing options. The “Prefabulous” campaign was another TV advertising effort that spotlighted the modern designs and affordability of their manufactured homes. However, large-scale marketing campaigns may not be enough to make a significant impact.
For Champion housesanother major homebuilder, much of its reach depends on developing an evolving product mix coupled with excellent customer service.
The builder listed the three most trusted manufactured home brands in 2025, based on a recent survey by Research into life stories. Skyline Housesa subsidiary of Champion Homes, was the most trusted homebuilding brand for the sixth year in a row. Champion Homes ranked second, and Genesis Housesanother subsidiary, came third.
John Kastanek, VP Customer Operations and Services at Champion Homes, says The builder’s newspaper that several key factors are increasing confidence in the industrial housing sector. Excellent design and quality are at the top of the list. Customers still value quality, even when choosing a more affordable option like manufactured homes.
As a result, Champion Homes regularly unveils new home models and has already introduced several new designs this year. In 2025, the manufacturer launched the Concord Suplex Series, the first nationally manufactured duplex series. EcoWise, a solar-powered home, was also introduced to the market last year. Another new model from Champion features a ‘Florida Room’, an enclosed veranda with plenty of natural light.
“The homes themselves must continue to evolve. Customer expectations are changing rapidly, whether it’s smarter layouts, better energy efficiency or finishes that feel more built on site. When people see that our designs reflect how they actually want to live, it builds trust,” says Kastanek.
In addition to providing a quality product, Kastanek emphasizes the importance of providing a great shopping experience. Clear communication is essential as customers want to feel genuinely supported without being oversold or rushed through the process. Trust is built by listening to customers, making them feel valued, and delivering well-designed homes that adapt to consumer expectations.
“Although today’s homes are incredibly well built, many people still cling to outdated perceptions. So trust becomes the bridge,” Kastanek said. “For us, it’s all about delivering on our promises. When we consistently deliver on the customer experience, those authentic recommendations start to break through people’s filters and dispel misconceptions.”
William Boor, chairman and CEO of Cavco Industriesa publicly traded home manufacturer, said during a fourth-quarter 2025 earnings call that eliminating the permanent chassis requirement would spur innovation and create more opportunities for manufactured housing to gain market share.
“We would still make a lot of homes with a permanent chassis attached to the house. But removing that from the definition of a manufactured home just creates innovation opportunities for our industry. It opens up the possibility of being able to build multi-story homes more easily,” he said.
Manufactured housing is mainly located in rural areas, but their innovative potential could create opportunities in larger, busier urban areas.
“A lot of the innovation that could happen… when you think about these types of opportunities, you start to see the opportunity for product innovation for urban and suburban markets, and that opens up a whole new market opportunity for this industry,” he explained.
As manufactured homes become more sophisticated and innovative, selling them to buyers and convincing localities to approve manufactured communities could become easier, Boor said.
A broader drive for affordability
In addition to a federal effort by Congress and the Trump administration to improve housing affordability, there is also a wave of housing reform at the state and local level. One of these reforms is a revival of housing types that have existed for a long time, but have been largely ignored for decades. As affordability worsens, lawmakers are exploring these options as possible solutions.
Manufactured homes are an example of this. Another is the revival of single-room occupancy, a housing type that was once popular but largely phased out after World War II. With housing costs high during this time, cities and states are now beginning to reconsider these bans.
Last year, Oregon passed a law legalizing single-room occupancy units (SROs), a housing option previously viewed negatively due to safety and health concerns. The city of Portland, Oregon, recently introduced a pilot SRO program that provides subsidies to homeowners who rent spare bedrooms to low-income tenants.
Other states, such as Washington and Hawaii, have also passed statewide reforms to legalize SROs and shared housing.
Manufactured housing, like SROs, is also gaining popularity at the local level as more states and municipalities loosen restrictions. A bill in Maryland that took effect last year would require municipalities statewide to allow manufactured homes in areas zoned for single-family residential use. Other states, such as Maine and Kentucky, recently passed similar laws that prevent municipalities from excluding manufactured housing. Boor pointed out that these local reforms were more effective than any federal legislation.
“There are certain things the federal government can do that would really have a big impact,” he said. “Where it’s harder for them to have direct influence is the things that have more functions at the state and local level. And that’s where you really see the zoning challenges that limit the range of what we do.”
