Manufactured is Naturally Occurring Affordable Housing
The Shifting Economics of Manufactured Housing: Analysis of Price Trends 2017-2022
The manufactured housing market has undergone a remarkable transformation over the past five years, demonstrating price appreciation that outpaces the broader housing market. Census Bureau data shows the national average price for manufactured homes increased from $71,900 in 2017 to $127,300 in 2022, representing a 77% increase. This growth rate significantly exceeds the 47% increase observed in traditional single-family homes during the same period.
The geographic distribution of price increases reveals significant regional variations. Idaho emerged as the most expensive state for manufactured housing, with average prices reaching $168,500 in 2022. This represents an 82% increase from 2017 levels. At the other end of the spectrum, Kansas maintained the lowest average prices at $100,800, though still experiencing a substantial 59% increase since 2017.
The most dramatic price appreciation occurred in Wyoming, where manufactured home prices surged 128% from $54,000 to $122,900. Similar dramatic increases were observed in Illinois, Kentucky, and Mississippi, where prices doubled over the five-year period.
From an investment perspective, these trends present both opportunities and challenges. The rapid price appreciation suggests potential returns for investors, but the asset class carries unique risks. As noted in the Census Bureau data, manufactured homes typically depreciate more rapidly than traditional housing stock, similar to automobiles. This characteristic affects both financing options and long-term value retention.
The financing environment for manufactured homes presents additional complexities. The higher depreciation rates lead lenders to view these properties as higher-risk investments, resulting in less favorable financing terms compared to traditional homes. This factor becomes increasingly significant as average prices exceed $100,000 in all states, pushing more buyers toward financing rather than cash purchases.
The data suggests structural changes in the manufactured housing market. According to the Manufactured Housing Shipment Survey, the trend toward larger, multisection models, particularly in states like Idaho, indicates a shift in the market toward higher-end manufactured housing products. This evolution may partially explain the rapid price appreciation in certain regions.
These findings have important implications for housing affordability. While manufactured homes continue to offer lower absolute prices compared to traditional housing, their accelerated price appreciation may be eroding their historical role as an affordable housing solution. This trend warrants attention from policymakers and housing market participants concerned with maintaining accessible housing options across all market segments.
