Manufactured housing expands amid lender support and investor risks

Manufactured housing grows as an affordable option — but investor-owned parks and rent hikes raise alarm

The gap between what many Americans can afford and the cost of a traditional home has made manufactured housing an increasingly important entry point into homeownership. New loan programs, stronger factory production and lower per-square-foot costs have helped push manufactured homes into the spotlight as a practical choice for buyers priced out of the conventional market. At the same time, a wave of investor purchases of manufactured-housing communities has led to widespread complaints about rising lot rents, fee hikes and displacement, exposing gaps in consumer protections nationwide.

Key takeaways

• Affordability: Factory-built homes cost about $87 per square foot on average, roughly half the $166 per square foot for typical site-built homes.
• Loan access: New nationwide and government-sponsored programs have broadened financing for manufactured homes, offering competitive rates and low down payments, though they carry specific rules.
• Production rebound: Shipments recovered from pandemic lows, peaking near 122,000 annualized units in early 2022 and stabilizing around 106,000 by May 2025.
• Community risk: Institutional buyers have bought large shares of manufactured-housing communities, and residents report rent hikes, fee increases and legal struggles in some parks.

What’s changed on the lending and production side

Lenders and federal agencies have moved to make manufactured-home financing easier to find. A federal agricultural lender expanded a manufactured-home lending program nationwide after testing it in many states. Two major mortgage guarantors also have programs that make manufactured-home loans available with conventional financing features. These programs can offer competitive interest rates and low downpayments but include eligibility limits and quality standards.

Modern factory-built homes are higher quality and more energy efficient than older models. New plans often include features associated with site-built homes, such as front porches, garages, pitched roofs and open floor plans. To qualify for many programs, homes must meet construction and safety rules set by federal housing officials, and they must pass professional inspections and paperwork checks, including a special appraisal form that is unique to manufactured housing.

Production has recovered since the early pandemic slump. Factory shipments peaked at an annual rate of about 122,000 units in March 2022, then softened as inflation and mortgage rates rose, before rebounding to roughly 103,300 completed homes in 2024 and to an annualized rate around 106,000 by May 2025. Manufactured homes represent roughly one in every 10 new single-family homes built each year, and more than 22 million Americans live in these homes.

Prices and comparisons

The average sale price for a manufactured home in 2024 was about $123,300, a figure that excludes land. By contrast, the median value for a single-family home that includes land was about $367,282. Since 2014, manufactured-home prices rose by roughly 76%, while single-family values rose by about 105%. Much of the big price jump for both types occurred during 2020–2021.

Where manufactured housing is most common

The South leads in shipments and use. Texas led total shipments in 2024, followed by Florida and North Carolina. When measured as a share of all new single-family housing, states such as Mississippi, Kentucky, Louisiana and West Virginia ranked highest. Many of the high-share states also rank low in overall housing construction, making manufactured housing a larger piece of the local housing mix.

How manufactured-housing communities work — and why residents worry

Many manufactured-home owners own their home but lease the land beneath it, paying monthly lot rent and utilities. That land-lease model has been an affordable route into home ownership but can leave residents vulnerable because they do not control the land. Moving a manufactured home can be costly or impossible for older units, leaving residents effectively tied to a lot.

The last decade has seen a major private-capital shift into community ownership. Institutional investors and private-equity firms bought many parks because the business model offered stable returns. This shift coincided with reports from residents that new owners raised lot rents, added fees, changed rules or failed to fix infrastructure. In some cases, residents have sought first-right-to-purchase laws or legal remedies, with mixed results. Available protections vary widely by state.

These ownership changes have generated disputes in multiple communities. Some resident groups tried to buy parks but were outbid by investor buyers. In certain cases, official agencies found improper rent increases or ordered reimbursements, and some residents face notices of steep rent hikes that threaten their ability to stay. Advocates and researchers note a lack of consistent national data on community sales, rent increases and evictions, complicating efforts to gauge the scale of problems and craft uniform protections.

Policy and legal context

Federal and state agencies have taken steps to increase access and reduce risk, including new lending rules and limited borrower protections tied to certain financing. However, these protections often apply only when financing uses specific programs and may not cover many residents. Tenant protections, such as the right to be notified before rent changes or laws giving residents a first chance to buy a park, exist in some places but vary in strength and effect.

Challenges ahead

Supply-side limits, including zoning restrictions and historic stigma toward manufactured housing, slow the creation of new parks. Meanwhile, more lenders and loan officers could choose to specialize in manufactured-home lending and capture a niche market, since only a few currently offer these loans. Better data, broader tenant protections and zoning reform are cited as key steps needed to expand manufactured housing while protecting long-term residents.

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