In the ever-changing and record-breaking housing market that we experienced in 2022, there was a mass shortage of inventory of homes for sale. This caused many prospective buyers to turn to manufactured homes in order to make their homeownership dreams come true. However, this trend may be slowing down as a potential housing market cooldown approaches in 2023.
Many homebuyers felt that manufactured homes were more accessible, as there was no inventory shortage or record-breaking prices. Rocket Mortgage even announced in November that they would begin offering financing of manufactured homes due to their availability and affordability. A report from the Manufactured Housing Institute supported this sentiment, sharing that manufactured homes cost, on average, about a third of a site-built home. The report also stated that 22 million Americans live in manufactured homes, and this building type accounts for 9% of new-home construction.
Manufactured home prices
Recent data from the U.S. Census Bureau’s Manufactured Housing Survey found that manufactured homes do remain cheaper than average home prices, despite some shifts in their market.
Following is a breakdown of the average sales price of new manufactured homes (by region and size of home) in August:
U.S. Total: $125,700 (down from $131,800 in July and up from $112,000 last year)
Single: $86,500 (up from $85,200 in July and $80,000 last year)
Double: $158,800 (down from $161,600 in July and up from $138,000 last year)
Northeast Total: $117,800 (down from $129,700 in July and up from $105,000 last year)
Single: $74,700 (down from $93,300 in July and $86,000 last year)
Double: $145,100 (down from $157,400 in July and up from $117,000 last year)
Midwest Total: $110,900 (up from $110,800 in July and $100,000 last year)
Single: $87,500 (up from $83,600 in July and $77,000)
Double: $151,900 (down from $156,100 in July and up from $132,000 last year)
South Total: $126,400 (down from $131,300 in July and up from $112,000 last year)
Single: $86,000 (up from $82,900 in July and $80,000 last year)
Double: $159,400 (up from $158,700 in July and $139,000 last year)
West Total: $144,100 (down from $156,800 in July and up from $135,000 last year)
Single: $93,400 (down from $97,300 in July and up from $79,000 last year)
Double: $166,400 (down from $178,200 in July and up from $143,000 last year)
Manufactured home shipments
While manufactured homes remain more affordable, the shipment of new homes has decreased from prior months. The data found that shipments have been steadily decreasing since August, well below the metrics of last year.
Shipments of new manufactured homes in November break down as follows:
Not Seasonally Adjusted: 8,000 (down from 8,700 in October and 9,300 last year)
Seasonal Index: 97,200 (down from 100,700 in October and 102,900 last year)
Seasonally Adjusted Annual Rate: 98,000 (down from 104,000 in October and 108,000 last year)
The takeaway
With economist predictions—such as the National Association of REALTORS®, Lamacchia, Buffini & Company and more—varying across the market, the general idea is a cooldown and semi-normalization of the housing market by the end of 2024. Mortgage rates are expected to flatten around 5%, and home price growth will slow. With this expectation, the drop in shipments of manufactured houses may continue as prospective homebuyers see an opening to turn back to the market.
For the full data, click here.
