Can Manufactured Homes Address the Affordable Housing Crisis?
At less than a third the cost of a traditional home, manufactured homes are extremely affordable. Can they combat the nation’s affordable housing crisis?
Can Manufactured Homes Address the Affordable Housing Crisis?
At less than a third the cost of a traditional home, manufactured homes are extremely affordable. Can they combat the nation’s affordable housing crisis?
No matter where in the country you look, housing is becoming increasingly less affordable. Today, more than 40% of the nation’s 100 largest metropolitan areas face a lack of affordable housing1—a problem that most significantly impacts the households with the fewest resources to combat the problem.
For example, households earning between $75,000 and $100,000, those in the “middle- to upper-middle-income” bracket, can afford 21.2% of all listings on the market as of March 2025—down 27.6 percentage points from 48.8% of listings in March 2019.1
On the other hand, households earning below $75,000 are far more constrained. For these households, just 8.7% of all listings today were within reach, down 19.1 percentage points from 27.8% in March 2019.1
This lack of affordability plays into what the National Low Income Housing Coalition terms the housing supply gap—a nationwide shortage of affordable housing that strains America’s working families. The coalition estimates that the United States is currently short 6.8 million affordable homes, with the most severe supply gaps occurring in Sunbelt states like Florida, Texas, Arizona, and Nevada.2
Could manufactured homes make housing more affordable?
One issue is that new housing is expensive to build. On average, a new site-built home costs $413,160, or roughly $165 a square foot, to build.3 And this figure represents the cost of the structure alone—it doesn’t factor in the cost of land, which can often account for 20% to 40% of the total costs for a new home.4
Nonetheless, construction costs represent the largest portion of new build costs. They’re also rising rapidly. According to the National Association of Home Builders (NAHB), construction costs “accounted for 64.4% of the average price of a new home in 2024 compared to 60.8% in 2022.”5
Labor shortages, rising material costs, supply chain disruptions, higher insurance premiums, and even tarrifs—which could alone cause construction costs to jump a further 1.5–2.5%6—could threaten to worsen America’s housing affordability crisis and make homes even less accessible than they are today.
What can be done to combat these challenges?
One solution could be to turn towards manufactured housing. Unlike traditional stick-built homes, which are built from the ground-up at the homesite, manufactured homes are partially or fully pre-built at an off-site factory, in accordance with the U.S. Department of Housing and Urban Development’s (HUD’s) Manufactured Home Construction and Safety Standards.7
Once built, the homes are then transported to the homesite, where they are anchored and installed.
Arguably the biggest advantage to this method of construction is that it is significantly cheaper. The average manufactured home costs just $127,250 or $85.00 per square foot to build—roughly half the cost of a site-built home.3
Depending on the size of the manufactured home, costs can be even lower. For example, a single section (or single-wide) home, which can be built and transported in one go, costs an average of $86,100 to build.3 Meanwhile, a double section (or double-wide) home, which is built in two separate sections that are attached together on-site, costs an average of $158,633 to construct.3
Why should investors care about manufactured housing?
Despite these cost advantages, manufactured homes are fairly uncommon. CNN reports that just “6% of the housing stock in the US [consists of] manufactured homes.”8 Nor are they distributed equally: most manufactured homes are located in rural communities, rather than in the urban metro areas that face the greatest housing affordability challenges.
Besides, most of the existing manufactured housing stock is old. According to MHInsider, an estimated 60% of the country’s manufactured housing communities were built in the 1970s and 1980s.9 Since then, construction has rapidly tapered off: only 12% of manufactured communities in existence today were built past 1991, excluding those within unknown vintages.9
For investors, this dislocation between supply and demand, worsened by the shortage of new construction, is a potentially compelling opportunity. As cities begin to recognize the benefits of manufactured housing and potentially ease zoning restrictions, investors could have the chance to finance new, high-quality builds that are desperately needed in high-demand Sunbelt markets.
Make an impact on America’s affordable housing crisis. Accredited investors can invest in the DLP Building Communities Fund to help finance the construction of new manufactured homes in the Sunbelt, while unlocking the potential for targeted returns of up to 13%.
FAQs
What is the average cost of a manufactured home?
According to the Manufactured Housing Institute, the average manufactured home costs $127,250, or $85 per square foot, to build.
How does manufactured housing work?
Unlike traditional homes, which are constructed on-site from the ground-up, manufactured homes are pre-built in an off-site factory to meet HUD (Department of Housing and Urban Development) standards. Then, the home is transported and installed on-site. This method of construction makes manufactured homes cheaper to build than traditional site-built residences.
Is it cheaper to live in a manufactured home?
Yes. Living in a manufactured home is generally cheaper than living in a traditional, stick-built home. That’s because their lower construction costs translate to more accessible purchase and rental prices. Manufactured homes can also be built with energy efficiency in mind, which results in lower utility bills for occupants.
Do manufactured homes age well?
Yes. With ongoing maintenance and proper care, a manufactured home can last between 30 and 55 years, which is roughly equivalent to the lifespan of a traditional site-built home.
Are manufactured homes safe in storms?
When installed and anchored properly, manufactured homes are no less safe in storms than traditional homes. However, in certain severe weather conditions, you may wish to evacuate rather than shelter in-place, regardless of whether you live in a manufactured or traditional home.
1Here’s exactly how unaffordable today’s housing market is — and where it’s getting worse. CNBC. May 2025.
2No State Has an Adequate Supply of Affordable Rental Housing for the Lowest-Income Renters. National Low Income Housing Coalition. March 2025.
32023 Manufactured Housing Facts: Industry Overview. Manufactured Housing Institute (MHI). June 2023.
4It’s Not All About Demand: Home Prices are Sky-High Where It’s Most Difficult and Most Expensive to Acquire and Develop Land. Redfin News. October 2020.
5Cost to Construct a Home Rose Significantly Over Last Two Years. National Association of Home Builders (NAHB). January 2025.
6Here’s How New Tariffs May Impact Construction Costs in 2025. D Magazine. June 2025.
7Manufactured Home Construction and Safety Standards. Federal Register. January 2021.
8Manufactured homes are surging in popularity — and you can order them on Amazon or Facebook. CNN. November 2024.
9Manufactured Housing Industry Trends & Statistics. MHInsider. April 2025.
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