U.S. States Investing Most in Manufactured Housing

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After over two years of elevated real estate prices , mortgage rates , and rents , the housing affordability crisis in the U.S. is more apparent than ever. Policymakers, economic experts, and regular U.S. households have been searching for tools to alleviate the pressure of housing costs. Expanding manufactured housing is one possible solution.

The category of manufactured housing includes housing units that are prefabricated in a factory and then transported to their ultimate destinations. Because these units tend to have simple designs and materials that make them efficient to produce, they are often significantly less expensive than site-built homes. A 2023 report from the Manufactured Housing Institute found the average cost per square foot of a manufactured home was $87, roughly half of the $166 cost per square foot of a site-built home.

For lower- and middle-income families, this more affordable option has significant appeal. Currently, 21.2 million Americans live in manufactured homes, and manufactured homes represent around one out of every 10 new homes constructed in the U.S. each year. Further, the quality of manufactured homes has increased as well, with better materials, greater energy efficiency, and improved designs.