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The manufactured housing industry has grown significantly over the past decade. Its share in single-family housing starts increased from 20 percent in 1992 to 28 percent in 1998. Statistics show manufactured homes growing in popularity.
- About 20 million people (about 8 percent of the U.S. population) now live full-time in over 10 million manufactured homes.
- In 2001, one out of 7.5 new single-family housing starts were manufactured homes.
- Eight-eight percent of manufactured homeowners report satisfaction with the manufactured housing lifestyle.
Source: "The Market Facts" by The Foremost Insurance Group of Companies, 2001.
The Manufactured Housing Market
As of 1998, the top five states for manufactured home sales are:
- Texas
- North Carolina
- Georgia
- Florida
- Nevada
The Southeast (where land is relatively inexpensive) accounted for 43 percent of all shipments in 1998. Although the industry sells fewer homes in the Northeast, nationwide sales of manufactured homes continue to grow. The strongest customer bases for the industry are:
- Rapidly growing groups of people entering their retirement years, living on fixed budgets and looking to downsize
- Young people entering the market for the first time, with limited funds to invest in home ownership
The Changing Face of Manufactured Homes
Over the past 20 years, the quality and appearance of manufactured homes have changed dramatically, giving them much greater appeal to homebuyers. Ever-improving production technologies have allowed manufactured homes to be better constructed, roomier, and built to suit any lifestyle, at any locale, with plenty of amenities usually found in site-built homes such as fireplaces, built-in grills, and swimming pools.
Site-built construction is becoming increasingly expensive and time-consuming, and manufactured homes are being considered by more and more people who might otherwise not be able to own a home. The manufactured housing industry primarily targets those segments of the population that are most price sensitive. It faces the challenge of providing the kind of living environment today's homeowners want at prices that are affordable. That means cost-effective choices must be made at every step of the homebuilding process.
Fuel Choice in Manufactured Homes
All manufactured homes have to be built in accordance with federal standards known as the HUD code (enacted in 1976 and upgraded in 1994) that is administered by the U.S. Department of Housing and Urban Development. This code regulates manufactured home design, construction, strength, durability, fire resistance, and energy efficiency. In 2000, the Manufactured Housing Improvement Act was passed into law. Among other measures, it makes provisions for updating the HUD standards and funds additional staff and resources to oversee the regulatory program.
 To meet HUD energy-efficiency standards, manufacturers are offering owners of manufactured homes a variety of energy-saving options, including better insulation, energy-efficient windows, and the choice of a home energy fuel. Energy choice plays an important role in the marketing of manufactured homes. Propane presents the opportunity for manufacturers, housing retailers, and homeowners to reap significant capital and operating cost savings. It is the ideal fuel for manufactured homes because it helps maintain both the affordability and attractiveness of manufactured homes in a market of value-conscious buyers.
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