Many Americans believe that manufactured homes do not appreciate as much as site-built homes. This negative perception leads some local governments to pass zoning restrictions that limit or ban manufactured housing in their communities. The perception also makes potential homeowners less likely to purchase manufactured homes.
But newly released data from the Federal Housing Finance Agency (FHFA) confirms this perception is not based in fact.
For the first time since 2018, the FHFA published data on the price of manufactured homes in its quarterly report on US home prices. The report tracks the prices of manufactured homes with mortgages insured by the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. Because the GSEs offer loans only to manufactured housing owners who own both the structure and the land, we analyzed how manufactured homes appreciated compared with site-built homes between 2000 and 2024. We found that though there was more volatility in the manufactured housing market, manufactured housing appreciation rates were very similar to rates for site-built properties.
Prices for manufactured and site-built homes increased at nearly the same rate
The FHFA calculates its price indexes using a repeat sale methodology, meaning it looks at how the price of a property changes between multiple sales. The FHFA publishes two home price indexes: one based on home purchasing transactions and a second based on all housing transactions, including purchasing and refinancing. Because manufactured homes get refinanced less often than site-built homes, our analysis looks only at the purchase index. This valuation is also based on transactions, rather than just home appraisals, making it a more accurate reflection of the market.
Purchase activity from 2000 to 2024 shows manufactured home prices grow at nearly identical rates as those for site-built homes. Prices appreciated about 5 percent each year, increasing 212.6 percent among site-built homes and 211.8 percent among manufactured homes over the past 24 years.
The price of manufactured housing lagged behind site-built housing in the early 2000s and again from 2009 to 2012 as home prices declined nationwide. But year-over-year changes in the home price index reveal that manufactured homes have appreciated much faster than site-built homes since 2014. Except for two quarters (Q3 2023 and Q4 2021), manufactured homes have had higher year-over-year increases in home price appreciation than site-built homes in every quarter since Q2 2014.
Our analysis is limited by data availability and the geographic distribution of manufactured housing
Though prices for manufactured homes that include land have appreciated, the value of manufactured housing on land the borrower does not own has likely not performed nearly as well. Research has shown that land prices have appreciated more than structure prices in recent years. Land costs have gone from 35.7 percent of the total value of homes in 2012 to 57.4 percent in 2023. Data from the American Enterprise Institute indicate that land prices went up 261 percent between 2012 and 2023, while structure prices increased only 49 percent.
Further, states where manufactured housing is more common have experienced stronger housing price growth since 2020. Texas, North Carolina, and Florida have the most manufactured housing in the US. They account for 26.1 percent of all manufactured housing shipments between 1994 and 2024 and 32.2 percent of all shipments in 2024 through July. In comparison, these three states accounted for about 19.1 percent of the nation’s housing stock in 2023.
From 2000 to 2024, site-built home prices in Texas increased 232.8 percent, higher than the national rate of 212.6 percent. Over this same period, home prices in Florida saw a sharper increase of 331.9 percent, while prices in North Carolina increased 209.6 percent, slightly slower than the national average. Because manufactured homes are more heavily concentrated in states with above-average home price appreciation, our analysis is limited by data availability and the geographic distribution of manufactured homes and possibly overstates how much they’ve appreciated.
How manufactured housing could help policymakers address the affordable housing crisis
Our analysis suggests that low-rise factory-built housing, including manufactured and modular housing, has been a good investment for both communities and homebuyers. As the US faces a shortage of affordable housing, negative perceptions about manufactured housing limit what solutions policymakers may pursue to address the crisis in their communities.
To increase the housing supply, state and local policymakers could reform restrictive zoning laws that do not permit manufactured housing in some residential areas. In California and Oregon, policymakers now permit accessory dwelling units in single-family zones as a matter of right. Similarly, Maine and Maryland have recently passed legislation allowing manufactured housing wherever single-family dwellings are permitted, while New Hampshire law now prohibits municipalities from restricting manufactured housing entirely. Other states could explore similar legislation that allows all forms of single-family detached homes, including manufactured housing.
Increased federal participation in the manufactured housing market could also significantly increase opportunities for sustainable and low-cost housing. By allowing for increased mortgage standardization and liquidity, mortgage rates on this product would fall, increasing the affordability of these homes across the US.
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