Where Manufactured Homes Are Filling The Housing Affordability Gap

Manufactured housing continues to widen its reach, led by the Sunbelt, where warm climates, flexible zoning and lower land costs make factory-built homes a durable affordability option.

Nationally, about 7.9 million manufactured units account for 5.4% of all housing, according to a new study from Storage Cafe.

Florida holds the nation’s largest inventory — more than 824,400 homes, or 7.8% of all manufactured residences — while New Mexico’s 15% share makes it the top state by concentration.

Ten states now exceed a 10% share, including Mississippi, West Virginia and South Carolina.

States with the highest shares of manufactured homes also tend to have below-average housing prices, offering a path to ownership in places where incomes lag, the study shows.

By contrast, states with small manufactured housing footprints — including Hawaii, Massachusetts and California — post some of the country’s highest median home prices.

Cities leading the trend

Mesa, Ariz., has the largest city-level inventory with more than 29,300 units, while Largo, Fla., leads by share — 28% of all homes in the city.

Phoenix, Jacksonville, Fla., San Jose, Calif., and Houston also report significant manufactured housing presence.

Each city uses the model differently, from retirement-oriented communities to pressure valves in high-cost metros.

Self-storage patterns mirror the trend, with top manufactured housing states averaging more than 7 square feet of storage space per person. Wyoming ranks highest at 16 square feet.

Affordability at the core

The price advantage remains the sector’s strongest draw.

In 2024, the average new manufactured home cost about $123,300 — less than half the national median home price.

While land costs can shift total expenses, manufactured housing continues to offer first-time buyers and retirees one of the few remaining affordable entry points to ownership.

As manufactured units evolve in design and energy performance, interest among younger buyers is rising. Modern homes now feature open plans, smart-home systems and improved durability.

“Major industry players already aim to have 100% zero-energy homes, and the move toward better energy performance and indoor air quality will continue,” says Fernando Ruiz, a master builder and residential construction consultant. “Disaster resilience will also be a key focus. By every measure, manufactured housing is turning every challenge into a positive, and at an accelerated pace.”

Residents share advice

For many Americans, the shift toward manufactured housing stems from escalating site-built home prices and limited rental supply.

“The land I put my house on had never had plumbing, water or electricity,” said Jamie Wright of Pittsburg County, Okla. “I had to obtain a property easement from my neighbor, and I had to pay to get the utilities installed.

“Make sure you are buying from a reputable retailer. Everything started out awesome, but at the end of the sale, several business transactions lacked integrity. Get everything in writing. If it isn’t in writing, it doesn’t exist.”

In California, RV living became a last resort for Darrelle Radcliff.

“My boyfriend and I were pushed into this lifestyle after we had to leave the home where we were renting a room,” she said. “With a Siberian Husky and two cats, our housing options were limited — most apartments in our county allow cats, but not large dogs.”

Industry outlook

Experts say zoning remains one of the sector’s biggest hurdles.

“Many jurisdictions — in particular cities and towns — prohibit the placement of a manufactured housing unit anywhere within the jurisdiction,” said Noah Durst, an associate professor at Michigan State University.

Still, demand is growing amid a national shortage estimated at more than 4 million homes.

“Manufactured home communities are crucial amid a deepening housing affordability crisis, serving as a non-subsidized affordable housing option providing residents with an attainable path to homeownership,” said Michael Nissley of Colliers.

Whether in desert metros, coastal regions or rural communities, manufactured homes are emerging as a stabilizing force — and one of the few reliable affordability paths left.