Manufactured Housing Is Booming - Here's What Real Estate Pros Need to Know

by MyState MLS Team

If you've been in real estate for a while, chances are you've passed right by a manufactured home listing, maybe even rolled your eyes at the term "mobile home." But here's the thing: manufactured housing is changing - fast - and smart agents and brokers are starting to pay attention. 

In today's world of rapidly rising home prices, inventory shortages, and affordability crises, manufactured homes are stepping in to meet a not-so-quitely increasing demand. They're not just a lower-budget or niche option anymore - they're becoming a major player in the future of housing. So let's break down what's happening, why it matters, and how you can be part of this massive shift.

Manufactured Homes Aren't What They Used to Be (not grandma's house anymore)

First things first: we need to clear up some misconceptions.A lot of people still think of manufactured homes as cheap "trailers" from the '70s, but today's models are modern, energy-efficient, stylish, and built to strict HUD code standards. In fact, many manufactured homes look just like traditional site-built homes - and in some cases, even better.

We're talking about open floor plans, vaulted ceilings, stainless steel appliances, walk-in closets, and smart home features. Yes, really. Manufactured housing has received a serious glow-up in the last two decades. And more buyers are noticing.


Why the Manufactured Housing Market Is Heating Up 

Let's talk about the elephant in the room: affordability. The cost of a traditional site-built home has become unreachable for millions of Americans. First-time buyers, retirees, young families, and even some investors are being priced out. That's one of the main reasons manufactured homes have found their way into the bigger picture.

Here's why the manufactured and modular housing market is starting to take off:

  • Price per square foot is way lower - about half that of a site-built home.

  • Faster build times - these homes (modular and manufactured) are built in factories, then delivered and installed quickly. 
  • Lower utility bills - modern manufactured homes are super energy-efficient.
  • Less land needed - many are placed in existing manufactured housing communities or small plots.

For buyers who want a real home (not an apartment), but don't want to go deep into debt, the manufactured home can be the ultimate game-changer.

Who's Buying Manufactured and Modular Homes?

You might be surprised. It's not just low-income buyers anymore. Today's manufactured housing market is attracting buyers of all walks of financial life:
  • The easiest to peg for this list is often going to be retirees looking to downsize and potentially cut the cost of their monthly expenses.
  • Millennials and Gen Z buyers who want their own space without the huge mortgage.
  • Remote workers moving out of cities and into more affordable towns.
  • Investors who see the high ROI potential in manufactured rental units.

    This means that the pool of interested buyers is bigger than ever - and with a great deal of room to grow.

    Big Changes Are Making It Easier to Sell

      Historically, manufactured housing had a few hurdles: zoning restrictions, financing limitations, and stigma. But the landscape is shifting. More cities and states are changing their zoning laws to allow for manufactured homes - especially as they try to address housing shortages. Some places are even offering incentives to place manufactured homes in certain areas.

    States Leading the Way:

    • Maine and Maryland: Enacted laws allowing manufactured housing in any location that permits single-family homes, effectively removing zoning barriers. 
    • New Hampshire: Passed legislation requiring municipalities to provide "reasonable and realistic" opportunities for new manufactured housing parks, blocking zoning codes that effectively bar such developments. 
    • Rhode Island: Enacted legislation to prevent zoning barriers for manufactured homes, allowing them wherever single-family homes are permitted. 
    • California: Passed over 30 housing bills in 2024 aimed at reforming land use regulations, many of which support the expansion of manufactured housing. 
    • Florida and Washington: Significantly changed their approaches to land use regulation in 2023, paving the way for more manufactured housing developments. 

    Cities Making Moves

    • Portland, Oregon: Implemented the Residential Infill Project, allowing up to four homes on lots previously zoned for single-family housing, including manufactured homes. 
    • Boise, Idaho: Approved a zoning code rewrite permitting duplexes and cottage court homes on most residential land, facilitating the inclusion of manufactured housing. 
    • Wallingford, Connecticut: Approved new downtown zoning regulations to encourage affordable housing development, including manufactured homes, with incentives for developers. 

    These changes are just another reflection of a growing recognition of manufactured housing as a viable solution to housing shortages and affordability issues.

    Financing Options Are Expanding

    It used to be tough to get a mortgage on a manufactured home, especially if it wasn't on owned land. Now, programs like Fannie Mae's MH Advantage and Freddie Mac's CHOICEHome are offering more financing solutions with lower rates and better terms. Many lenders are catching on and offering conventional financing for qualifying homes.

    Top Manufactured and Modular Home Builders Offering Financing:

  • Clayton Homes: One of the largest builders in the U.S., Clayton Homes offers a variety of financing options through its affiliated lender, Vanderbilt Mortgage and Finance. They provide loans for both land-home packages and homes placed in communities, catering to a wide range of buyers.
  • Next Modular: Serving Indiana and Michigan, Next Modular assists buyers with various financing options, including conventional construction loans, FHA, VA, and USDA loans. They guide clients through the financing process to ensure a smooth experience.
  • Texas Built Mobile Homes: Based in Texas, they offer in-house financing options, including Land Home Financing and Taxpayer Identification Number (TIN) financing on 3 & 4 bedroom homes. Their flexible financing solutions cater to a diverse clientele.

    The Stigma Is Fading

    With higher-quality builds and growing demand, the old image of "trailer parks" is fading. Many communities are now beautifully landscaped, well-managed, and full of amenities - think clubhouses, pools, fitness centers. These are places people are proud to live in. 

     Tech and Design Are Driving Innovation 

    One of the coolest parts of the manufactured housing world right now is all the innovation happening behind the scenes.

    • Smart home features: Many homes now come with smart thermostats, doorbells, security systems, and more.
    • Energy efficiency: Insulation, windows, HVAC - all designed to save money and reduce environmental impact.
    • Customization: Buyers can pick layouts, finishes, flooring, kitchen cabinets, you name it. 
    • Factory-built precision: Everything is built indoors in controlled environments, meaning fewer delays, less waste, and higher quality control.
    And let's not forget - construction tech is only getting better. 3D printing, modular construction, and robotics are all starting to merge with this space.

    What This Means for Real Estate Agents and Brokers

    Here's the bottom line: manufactured housing is no longer a side gig - it's a real opportunity. Most agents aren't even touching this space, which means there's less competition and more room for you to stand out. Here's how to make the most of it:
    • Become The Go-To Expert - Learn everything you can about HUD code, local zoning laws, financing options, and community requirements. Position yourself as a resource for buyers who are curious but confused.
    • Build Partnerships - Get to know your local manufactured home dealers, community managers, and developers. They often have inventory or leads they can't service themselves - and they're looking for licensed agents to work with.
    • Target The Right Buyers - Think about who's struggling to find affordable homes in your area. Market directly to renters, first-time buyers, empty nesters, and people looking to relocate from expensive urban areas.
    • Land/Home Packages = $$$ - Selling a manufactured home on land the buyer owns can open the door to conventional financing and much higher resale value. Pairing homes with land is a big win for buyers - and your commission.

    Common Pitfalls (and How to Avoid Them)

    To succeed in this niche, you'll need to watch out for a few challenges:
    • Financing confusion: Not all homes qualify for the same loans. Stay up-to-date on what lenders require.
    • Appraisal headaches: Manufactured homes can be undervalued if the appraiser doesn't understand the upgrades. Advocate for the right comps.
    • Zoning issues: Double-check local regulations before making promises to clients about placement or use.
    • Buyer skepticism: Some buyers still carry old-school beliefs. Show them real examples of modern homes and communities to change their perspective.
    And let's not forget - construction tech is only getting better. 3D printing, modular construction, and robotics are all starting to merge with this space.


    The Future Looks Factory-Built

    There's a big shift happening in real estate - and it's headed toward more efficient, more affordable, and more flexible housing options. Manufactured homes are at the center of that movement. Experts predict that in the next 5 to 10 years, factory-built homes could make up 15-20% of new residential builds. As affordability continues to dominate the housing conversation, manufactured housing will only get more important. If you're ahead of the curve, you'll be able to:

    • Help more people become homeowners
    • Open new income streams
    • Grow your business in underserved markets
    • Make a real difference in your community
    Whether you're already selling manufactured homes or just curious, now is the time to take this market seriously. There's a massive opportunity here - and it's wide open for agents and brokers who are willing to learn and take the lead within the manufactured housing industry. Real estate professionals can start by: 

    • Visiting a few local communities or manufacturers
    • Talking to lenders who specialize in manufactured housing
    • Creating content that educates your buyers
    • Adding manufactured listings to your website or IDX feeds



    What to Read Next

    The Listing Appointment Playbook

    The Listing Appointment Playbook

    When it comes to winning listing appointments, are you dancing in the end zone or fumbling the ball? A winning team starts with a great game plan, and so do successful agents.  Download The Listing Appointment Playbook for your all-in-one guide to score more seller clients and streamline your listing appointment process.
    Download
    Information Required

    Thanks for your interest in our awesome content!
    Just fill out your information below to access this page.

    I am a(n)*