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

                              Oct 3, 2024 - HUD Updates Manufactured Housing Regulations
                              • In September 2024, the US Department of Housing and Urban Development (HUD) announced the most sweeping update of its regulations of manufactured housing production in more than 30 years. The update to HUD’s Manufactured Home Construction and Safety Standards (HUD Rule) includes 90 new or updated standards to improve efficiencies for manufactured home production and make it easier for manufacturers to offer popular features, including open floor plans, accessibility enhancements, and more precise specifications for attics. The updated HUD rule aims to expedite the manufactured home production process by removing the need for alternative construction approvals for existing HUD-approved materials. The revised rule also allows multi-unit single-family manufactured homes to be built under the HUD Rule for the first time, enabling more cost-effective and denser urban and suburban manufactured housing infill.
                              • US shipments of manufactured homes decreased 7% month over month in July 2024, according to the US Census Bureau. On a year-over-year basis, July’s sales were up 29.5% compared to July 2023. Manufactured home shipments increased 17.9% in the first seven months of 2024 compared to the same period in 2023. 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 interest rates and a lack of affordability in the single-family housing market, and high multifamily rents could boost manufactured home demand.
                              • In late June, 2024, the Pew Charitable Trusts and the Federal Reserve Bank of Philadelphia convened a meeting of housing experts and other stakeholders to develop solutions for how manufactured homes could help address two linked housing challenges – a lack of supply and affordability. In attendance were housing and community development practitioners, lenders, community members, and government officials. The meeting’s agenda included three panel discussions. The first discussed hurdles homebuyers face in securing financing for manufactured homes. The second panel took on how to keep manufactured homeownership affordable while improving housing security for current manufactured home owners, on both owned and leased land. The third panel provided a forum for manufactured home owners to discuss emerging headwinds and ways to improve financial stability for owners of manufactured homes.
                              • Recent reports by Harvard’s Joint Center for Housing Studies (JCHS) suggest that while manufactured homes offer an affordable path to homeownership for low- and moderate-income households, bringing more manufactured homes online faces some tough barriers. Perceptions about manufactured homes are often negative, and the JCHS study authors suggest education and advocacy are necessary to overcome the industry’s reputation of poor quality and aesthetics. Even if advocacy and education about modern manufactured homes improve local attitudes about manufactured homes, overcoming zoning restrictions to allow manufactured homes where they’d previously been prohibited is often more complex. Zoning can sometimes be overcome by installing manufactured homes on permanent foundations, but developers often site their projects outside city limits or in unregulated areas.
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