Can Innovation, Policy Reform Redeem Manufactured Housing’s Image?

What realistic, visionary, and wise players in the U.S. housing sector believe is that some solutions are already here, hidden in plain sight.

Part of the problem is that what often hides those solutions from view is a past history, baggage or a whiff of negative reputation.

Manufactured housing is among them.

And, because of its relatively low cost, portability, and scalability, the category is becoming a bigger part of the national housing affordability conversation. 

However, manufactured housing has struggled to capture a significant market share recently due to persistent, negative, and outdated stigmas. 

The government may soon support the manufactured housing industry, as lawmakers in Washington and state capitals increasingly see manufactured communities as a crucial part of any affordable housing solution.

However, policy changes alone won’t be enough to change public opinion. 

To dispel these misconceptions, the manufactured housing industry is moving beyond traditional marketing campaigns and focusing more on innovation. By offering a wider range of models and floor plans that meet consumer expectations and budgets, large manufactured homebuilders are betting they can increase market share and broaden their reach. 

A federal effort to streamline manufactured housing development

A recent report from the National Association of Home Builders explains what qualifies as manufactured housing.

“Manufactured homes are a specific type of factory-built housing that adheres to the U.S. Department of Housing and Urban Development’s (HUD’s) 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, constructed on a permanent chassis.’”

Manufactured housing plays a key role in the federal government’s effort 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 cutting construction costs for each manufactured home by up to about $5,000. 

The legislation would also make it easier to develop manufactured housing by designating HUD as the main federal regulator for manufacturing standards and safety.

The bill’s supporters say these changes could lower manufactured housing costs by up to an additional $10,000. 

A lingering perception problem

The Manufactured Housing Institute reports that new manufactured homes cost less than a third of the price of site-built homes. These homes are often high-quality, but manufactured housing hasn’t gained much momentum in recent years, partly because the industry still struggles with a lingering perception issue. 

Shipments of manufactured homes reached a peak of 373,000 in 1998. At that time, they accounted for about 23% of single-family housing starts, but this changed considerably by the turn of the century. By 2024, there were only about 103,000 manufactured home shipments, representing 9% of single-family housing starts.          

Even though new manufactured communities feature high-quality design, a strong NIMBY effect still hampers the industry. Neighbors often worry that manufactured communities will be ugly, dangerous, or harm local property values. 

As a result, obtaining entitlements for manufactured housing can be challenging in many markets, Gene Kim, Executive VP of CRE Strategies at Ascent Developer Solutions, previously told The Builder’s Daily. 

Even when manufactured housing is approved and entitled, convincing buyers to purchase these homes can still be difficult. The U.S. Census Bureau’s 2025 Manufactured Housing Survey showed that manufactured homes and site-built homes appreciated at the same rate from 2000 to 2025. However, many buyers still believe that these homes don’t appreciate as quickly as traditional homes. 

“When people say mobile home parks, a lot of times, their mind jumps to a 1960s trailer park. But the communities 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 overall and the quality of the homes,” Kim said. 

Building trust in manufactured housing

Building trust and correcting misconceptions are key goals for the manufactured housing industry. Clayton Homes, a major manufacturer of manufactured and modular homes, has launched several marketing campaigns over the years to promote manufactured homes and challenge these stereotypes directly. 

The builder’s “Have it Made Campaign” aired commercials during major sporting events that highlighted their innovative, affordable manufactured housing options. The “Prefabulous” campaign was another TV advertising effort that showcased the modern designs and affordability of their manufactured homes. However, large-scale marketing campaigns might not be enough to make a significant impact. 

For Champion Homes, another major manufactured homebuilder, much of its outreach depends on developing an evolving product mix combined with excellent customer service. 

The builder listed the top three most trusted manufactured home brands in 2025, based on a recent survey by Lifestory Research. Skyline Homes, a Champion Homes subsidiary, was the most trusted manufactured housing brand for the sixth consecutive year. Champion Homes ranked second, and Genesis Homes, another subsidiary, came in third. 

John Kastanek, VP of Customer Operations and Services at Champion Homes, told The Builder’s Daily that several key factors build trust in the manufactured housing industry. Outstanding design and quality are at the top of the list. Customers still value quality highly, even when choosing a more affordable option like manufactured homes. 

As a result, Champion Homes regularly unveils new home models and has already introduced multiple new designs this year. In 2025, the manufacturer launched the Concord Suplex Series, its first nationally manufactured duplex series. EcoWise, a solar-ready manufactured home, was also introduced to the market last year. Another one of Champion’s new models features a “Florida Room,” an enclosed porch area with plenty of natural light. 

“The homes themselves have to keep evolving. Customer expectations are changing fast, whether that’s smarter layouts, better energy efficiency or finishes that feel more site-built. When people see that our designs reflect how they actually want to live, it builds confidence,” Kastanek said. 

Beyond delivering a quality product, Kastanek emphasized the importance of providing a great retail experience. Clear communication is essential, as customers want to feel genuinely supported without being oversold or rushed through the process. Trust builds by listening to customers, making them feel valued, and delivering well-designed homes that adapt to consumer expectations. 

“Even though today’s homes are incredibly well built, a lot of people still hold onto outdated perceptions. So, trust becomes the bridge,” Kastanek said. “For us, it all ties back to keeping our promises. If we deliver on the customer experience consistently, those authentic endorsements start to break through people’s filters and chip away at misconceptions.”

William Boor, President and CEO of Cavco Industries, a publicly traded manufacturer of homes, stated during a Q4 2025 earnings call that removing the permanent chassis requirement would drive innovation and create more opportunities for manufactured housing to gain market share. 

“We would still make a lot of homes that have a permanent chassis affixed to the home. But just removing that from the definition of a manufactured home just opens up innovation opportunities for our industry. It opens up the possibility of more easily being able to do multi-story homes,” he said.

Manufactured homes are mainly situated in rural areas, but their innovative potential could create opportunities in larger, more crowded metro areas. 

“A lot of the innovation that could take place…if you think about those kinds 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 grow more sophisticated and innovative, selling them to buyers and convincing localities to approve manufactured communities could become easier, Boor said. 

A broader affordability push

In addition to a federal effort by Congress and the Trump administration to improve housing affordability, there is also a wave of housing reforms at the state and local levels. Among these reforms is a revival of housing types that have existed for a long time but were largely ignored for decades. As affordability worsens, lawmakers are exploring these options as possible solutions.       

Manufactured housing is one example. Another is the revival of single-room occupancy, a housing type that was once popular but was largely phased out after World War II. With high housing costs during this time, cities and states are now starting to reconsider those bans. 

Last year, Oregon passed a law that legalized single-room occupancy (SROs), a housing option that was previously viewed negatively due to safety and health concerns. The City of Portland, Oregon, recently introduced a SRO pilot program that provides grants to homeowners who rent out spare rooms to low-income tenants. 

Other states, such as Washington and Hawaii, have also enacted 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 requires municipalities statewide to permit 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 to these local reforms as 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 impact directly are the things that are more functions at the state and local level. And that’s where you really see the zoning challenges that limit the supply of what we do.”