Global Manufactured Housing Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2024-2032)

Manufactured Housing Market Growth

Manufactured housing refers to prefabricated houses that are built and assembled in factories and later transported to the site of use. They are also referred to as mobile homes and their cost of construction is considerably lower than that of traditional houses.

Growing demand for sustainable housing is boosting the growth of manufactured housing market as builders incorporate energy-efficient materials in the construction of modular houses. Walls and roofs of modular houses are built with insulated material to reduce heat loss and leftover scraps are often reused in the building process to reduce the waste.

Manufactured Housing Market Trends

The introduction of several government initiatives and programmes aimed at increasing funding and promoting prefabricated housing solutions, especially in regions facing housing shortages and high costs of standard houses, is a crucial trend of manufactured housing market anticipated to aid the market in the coming years.

Increased incorporation of smart home technology such as smart thermostats to optimise the heating and cooling for energy efficiency, security features such as intelligent alarms and remote-controlled locks, and smart lighting to adjust the intensity of light and save energy provides impetus to the market predictions growth.

Recent Developments

One of the key updates is the extensive revision to the HUD Code, which governs manufactured home construction and safety standards. As per the manufactured housing market dynamics and trends, these changes, announced by the U.S. Department of Housing and Urban Development (HUD), include 90 new or updated standards aimed at making manufactured homes more modern, energy-efficient, and affordable. 

Industry Outlook

Rising Demand for Affordable Housing Supports the Growth of the Global Manufactured Housing Market

According to the United States Census Bureau, from 2019 to 2024, the shipments of new manufactured homes in the United States demonstrated several trends. In 2019, the total number of shipments was 94.6 thousand units and in 2020, 94.4 thousand units were shipped. In 2021, shipments reached 105.8 thousand units, which boosts the growth of the manufactured housing industry. This upward trend continued in 2022, with shipments totaling 112.9 thousand units. The year 2023, however, showed a decline, with 89.2 thousand units shipped. The preliminary data for 2024 suggests a potential rebound, with 42.7 thousand units shipped in just the first five months, indicating a possible return to growth.

From 2017 to 2022, the market volume of prefabricated housing across various European countries experienced notable growth. The United Kingdom exhibited a compound annual growth rate (CAGR) of 3.8% from 2017 to 2022, contributing to the manufactured housing industry revenue. Poland showed significant growth, with a CAGR of 6.9% from 2017 to 2022. Scandinavia experienced a CAGR of 3.5% from 2017 to 2022 while Germany grew by 3.1% from 2017 to 2022. By 2022, the total market volume of prefabricated housing reached 70.1 thousand units, up from 62.3 thousand units in 2018. The global market is influenced by these trends, with an increasing number of countries adopting prefabricated and modular homes to meet housing demands efficiently.

Several Benefits of Manufactured Houses, such as Affordability, Energy Efficiency, and Reduction in Construction Waste, Aid the Market.

• Manufactured homes are generally more affordable than traditional site-built homes, providing an accessible option for low- to middle-income families.
• Prefab homes can be built quickly in a controlled factory environment, reducing construction time and costs compared to site-built homes.
• Modern manufactured homes often feature energy-efficient designs and appliances, which can lower utility costs for homeowners, affecting the manufactured housing demand.
• Buyers can choose from a variety of floor plans, finishes, and features, allowing for personalization and meeting diverse needs and preferences.
• Factory production of manufactured homes tends to produce less waste than traditional construction methods, contributing to more sustainable building practices.

Financing Challenges, Land and Zoning Issues, and Limited Design Flexibility Pose Challenges to the Growth of the Market.

• Mobile home parks are sometimes perceived as lower quality or less desirable than site-built homes, affecting market acceptance and resale value.
• Obtaining financing for manufactured homes can be more difficult, with fewer lenders offering loans and often higher interest rates compared to site-built homes.
• Finding suitable land and navigating local zoning regulations can be challenging, as some areas have restrictions on where manufactured homes can be placed, which can impact manufactured housing demand forecast.
• While there are customisation options, the overall design flexibility is generally less than that of site-built homes due to standardized production processes.
• Economic instability and downturns can reduce consumer purchasing power and demand for new homes, impacting the manufactured housing sector.

Growing Demand for Affordable Housing, Technological Advancements, and Government Support and Incentives Provide Opportunities to the Manufactured Housing Market.

• Increasing housing costs and economic challenges drive demand for affordable housing solutions, positioning manufactured homes as a viable alternative.
• Innovations in building materials, construction techniques, and energy-efficient technologies can enhance the quality and appeal of manufactured homes.
• Rising interest in sustainable living and eco-friendly building practices can increase demand for energy-efficient manufactured homes.
• Policies and incentives aimed at boosting affordable housing, such as tax benefits, grants, and favorable zoning changes, can support the manufactured housing industry.
• An aging population creates opportunities for manufactured homes as an affordable and customizable housing solution for retirees and seniors.
• Manufactured homes can be used for disaster relief and temporary housing solutions, providing quick and cost-effective shelter during emergencies.

Competitive Factors Affecting the Global Manufactured Housing Market Analysis

• Companies that consistently deliver well-constructed homes can build a strong reputation and increase market share.
• Offering a wide range of customization options, such as different floor plans, finishes, and features, allows manufacturers to cater to diverse consumer preferences, increasing manufactured home sales.
• Incorporating advanced technologies in the construction process, such as energy-efficient designs, smart home features, and sustainable building practices, can attract tech-savvy and environmentally conscious buyers, which can boost the manufactured housing market revenue.
• Obtaining certifications for quality and sustainability can enhance the credibility and marketability of market players.
• Providing or facilitating access to competitive financing options can make manufactured homes more accessible to a broader audience. 
• Companies that prioritise green building standards and energy efficiency can differentiate themselves in the market.

Global Manufactured Housing Industry Segmentation

Based on number of section, the market is divided into single section, double section, and multi-section. On the basis of location, the market is bifurcated into private property and MH communities. The manufactured housing market segmentation, on the basis of application, includes residential and non-residential. The major regional markets for manufacturing housing are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

Global Manufactured Housing Market Share by Application

The residential sector occupies a significant portion of the manufactured housing market share and is expected to grow at a CAGR of 6.6% in the forecast period due to the growing demand for affordable houses. These houses are a preferable option for individuals and small families who are looking to own their own place on a budget. Moreover, the rise in the housing crisis in several populated places has led people to gravitate towards modular homes. Such houses can be built using environmentally friendly materials, which reduces the overall utility cost and saves homeowners a lot of money.

Global Manufactured Housing Market Regional Analysis

As per the manufactured housing industry analysis, North America accounts for a sizeable share of the global market owing to the high cost of traditional houses and their shortage in the region. USA and Canada are expected to grow at CAGRs of 6.2% and 7.2% in the forecast period. Several government bodies aim to increase the production of manufactured to provide affordable housing solutions for low-income families. Moreover, the presence of key players in the region attempting to improve the functionalities of these houses provides a positive outlook for market growth.

Competitive Landscape

Cavco Industries, Inc., established in 1965 and based in Arizona, the United States, is a manufacturer of pre-made houses. The company provides budget-friendly housing solutions under brand names such as Fairmont Homes, and Fleetwood Homes, among others.

Champion Home Builders, Inc. is a modular or mobile houses company, incorporated in 1953 and headquartered in Michigan, the United States. It offers construction services for residential houses, hospitality, government, and remote workforce, among others.

Clayton Homes, Inc., founded in 1956, is a modular and manufactured housing company, with its headquarters in Tennessee, the United States. It provides the facility of personalising and styling prefabricated homes to the buyers.

Other manufactured housing market players include Domino Homes, Skyline Champion Corporation, Karmod Prefabricated Technologies, General Coach Canada, Ironwood Manufactured Homes, Cumberland Japan Co., Ltd., and Knight Mobile Homes Ltd., among others.

Key Price Indicators of the Global Manufactured Housing Market

Raw Material Costs

Fluctuations in the prices of raw materials such as lumber, steel, insulation, and other building materials directly impact the cost of modular housing.

Labour Costs

Wages and labour availability can affect the cost of producing manufactured houses, impacting the demand of manufactured housing market.

Energy Costs

The cost of energy required for manufacturing processes, including electricity and fuel, influences production expenses.

Transportation and Logistics Costs

The cost of transporting materials to manufacturing facilities and finished homes to their final destinations impacts overall pricing.

Regulatory Compliance Costs

Costs associated with meeting local, national, and international building codes and regulations, including safety and environmental standards, can affect the final price of manufactured homes.

Technological Advancements

Investments in new technologies and innovations in manufactured home construction processes can influence production costs.

Market Demand

Economic conditions, consumer preferences, and demographic trends influence manufactured housing demand growth.

Land Costs

The cost of land where manufactured homes are placed impacts overall affordability.

Competition

Intense competition may lead to price reductions, while limited competition can allow for higher pricing.

Consumer Confidence and Economic Conditions

General economic conditions and consumer confidence affect purchasing power and demand for manufactured homes.

Customization and Features

The level of customization and additional features offered in manufactured homes impact pricing and manufactured housing market value.

Key Demand Indicators of the Global Manufactured Housing Market

Affordability of Housing

As traditional housing becomes more expensive, the demand for more affordable alternatives like manufactured homes increases.

Economic Conditions

Overall economic health, including employment rates, wage growth, and consumer spending impacts the demand for manufactured housing.

Housing Shortages

In regions facing housing shortages, manufactured homes provide a quicker and often more affordable solution, driving up manufactured housing demand forecast.

Government Policies and Incentives

Government initiatives to promote affordable housing, including tax incentives, subsidies, and relaxed zoning laws, can significantly boost demand for manufactured homes.

Retirement and Aging Population

As the aging population grows, the demand for affordable, low-maintenance living options is expected to rise among retirement communities.

Natural Disasters and Emergency Housing Needs

Manufactured homes are often used as temporary or permanent housing solutions in the aftermath of natural disasters, leading to spikes in demand.

Environmental and Sustainability Concerns

Growing interest in sustainable living and eco-friendly construction can drive demand for sustainable and energy-efficient manufactured homes.

Environmental Regulations

Stricter environmental regulations on traditional home construction can make manufactured homes, which often have a smaller environmental footprint, a more attractive option.