Manufactured Home Dealers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 1,200 manufactured home dealers in the US sell new and/or used manufactured homes, parts, equipment, and related services. Manufactured homes are also known as mobile homes. Product categories include single-section homes and multi-section homes. The majority of sales are for new manufactured homes. The average sales price for a new manufactured home was $108,100 in 2021.

Dependence On Credit

Customers typically rely on third-party lenders to fund manufactured home purchases, and dealers depend on floor-plan financing to fund inventory.

Image Makeover

The manufactured home industry is attempting to move beyond negative images of trailer parks by upgrading units to feel more like site-built homes.

Industry size & Structure

The average manufactured home dealer operates out of a single location, employs 9 workers, and generates $9 million annually.

    • The manufactured home dealer industry consists of about 1,200 companies that employ 11,000 workers and generate about $11 billion annually.
    • Manufactured homes account for about 9-10% of all new single-family homes sold.
    • The industry is fragmented; the top 50 companies account for 57% of sales.
    • Manufactured home dealers typically operate on a regional basis. States with large numbers of manufactured homes include Texas, Louisiana, Florida, North Carolina, and Mississippi.
    • Some manufactured home manufacturers are vertically integrated and have retail operations. In addition, some manufactured home communities have dealer licenses.
                              Industry Forecast
                              Manufactured Home Dealers Industry Growth
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              Jan 31, 2024 - Opportunities and Challenges for Manufactured Homes in 2024
                              • Some manufactured home community (MHC) owners are seeing demand improve, but operators also face lingering cost challenges, according to Multi-Housing News. MHC operator Havenpark Communities said that in 2024, the firm saw a 20% year-over-year uptick in applications for families wanting to live in its communities. High prices for single-family homes make manufactured housing an attractive option that increasingly appeals to a younger demographic. However, the industry continues to face higher expenses amid rising costs for construction, labor, insurance, and debt. Amid these ongoing challenges, the CEO of Havenpark Communities expects manufactured home production in 2024 to resemble levels seen in 2023.
                              • US shipments of manufactured homes decreased 7.1% month over month in November 2023, according to the US Census Bureau. On an annual basis, November’s sales were down 2.5% compared to November 2022. While manufactured housing has tended to be countercyclical during tough economic times because it is one of the lowest-cost options for housing in the US, high inflation combined with rising interest rates may put downward pressure on demand.
                              • With the US housing market in an affordability crunch, manufactured housing investors hope to fill a growing need for inexpensive housing. However, manufactured housing struggles to shed the stigma that it is low quality, isolated, and offers few amenities. Investors in mobile home communities are increasingly adding amenities that are more commonly associated with higher-end multifamily developments, including pools, clubhouses, playgrounds, sports courts, green space, and security services. Industry insiders also suggest that manufactured housing community owners can attract more residents by stressing the high quality and energy efficiency of modern manufactured homes.
                              • In September, the Government Accountability Office (GAO) released recommendations for how the Department of Housing and Urban Development (HUD) should improve borrower access to financing for purchases of manufactured homes. The GAO noted that while HUD has previously announced plans to make improvements to lending programs for manufacturing housing, it has not set a timeline for doing so. The GAO recommends that two HUD agencies – the Federal Housing Administration and Ginnie Mae – move forward with plans to provide more financing options for manufactured homes and to identify options for greater securitization of manufactured home mortgages and personal property loans. The GOA also suggested HUD outline timelines and milestones for its plans. According to the GAO, the limited secondary market for personal property and manufactured home loans discourages lenders from offering them.
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