Manufactured housing gains traction, but negative stigma persists

"As the housing market prices out more and more Americans, federal lawmakers are taking a closer look at manufactured housing as a more affordable supply-side alternative to a traditional stick-built home. Nevertheless, misconceptions about new manufactured housing communities that they are dilapidated, ugly, or unsafe continue to beleaguer a segment of the single-family, detached housing market that is currently home to 7.2 million U.S. households."

"The Affordable HOMES Act, which the U.S. House of Representatives passed last week, is part of that vision. The legislation, largely aimed at boosting and streamlining manufactured housing development, would remove regulatory burdens. For example, it would give HUD sole authority over manufactured housing energy efficiency standards and eliminate overlapping oversight by the Department of Energy. Lawmakers claim that reducing such red tape could lower manufactured housing prices by up to $10,000 per unit."

"Gene Kim, Executive VP of CRE Strategies at Ascent Developer Solutions (AscentDS), told The Builder's Daily that manufactured housing can and should play a major role in boosting housing affordability. AscentDS, a private lending and institutional debt platform backed by Elliott Investment Management L.P, serving single-family, homebuilder, and multifamily developers, recently announced an expansion to provide financing to manufactured housing developers."

Manufactured housing provides a lower-cost, supply-side alternative to traditional stick-built homes and currently houses 7.2 million U.S. households. Lawmakers from both parties support expanding manufactured housing to improve affordability. The Affordable HOMES Act passed by the U.S. House would streamline development by removing regulatory burdens, including giving HUD sole authority over energy-efficiency standards and ending overlapping DOE oversight. Proponents estimate regulatory reductions could cut prices by up to $10,000 per unit. The Manufactured Housing Institute reports new manufactured homes sell for less than a third of site-built prices. Persistent stigmas and local approval challenges continue to impede deployment despite private financing expansion.

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