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 $87,000 in 2020.

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 8 workers, and generates $6-7 million annually.

    • The manufactured home dealer industry consists of about 1,200 companies that employ 10,400 workers and generate about $8 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

                              Dec 2, 2022 - Manufactured Home Sales Drop
                              • US shipments of manufactured homes decreased 12.1% month over month in September 2022, according to the US Census Bureau. On an annual basis, September’s sales were up 4.4 compared to September 2021. While manufactured housing has tended to be countercyclical during tough economic times due to it being one of the lowest-cost options for housing in the US, high inflation combined with rising interest rates may be putting downward pressure on demand.
                              • In early November, Rocket Mortgage announced it would begin offering conventional loans for purchasing or refinancing a manufactured home. The new offering is available for as little as 5% down for a primary residence or at least 10% down for a second home. Rocket Mortgage’s CEO said that in the past year, about $12 billion in manufactured homes were sold in the US.
                              • The University of Vermont, the University of Maine, and the University of New Hampshire have been included in a $79,000 federal grant to study the effects of climate change on manufactured home communities in the three states, according to VTdigger.org. The grant is being made available through the National Oceanographic and Atmospheric Administration. It’s long been known that manufactured housing is uniquely vulnerable to high winds and flooding, but the universities plan to learn more about how communities can prepare for other climate risks, including heat waves.
                              • At the end of 2021, the $2,000 45L Energy Efficient Home Credit for home builders, including builders of manufactured homes, expired but has been renewed and extended under the Inflation Reduction Act (IRA), which President Biden signed into law in August 2022. Under the new law, new single-family, multifamily, and manufactured homes sold or leased in 2022 will be eligible for the $2,000 2021 energy efficiency standard tax credit. However, beginning in 2023 and running until the end of 2032, manufactured homes that meet new energy-efficiency provisions and requirements set by the Manufactured Homes Program will qualify for a $2,500 tax credit.
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