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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, 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

                              Coronavirus Update

                              Apr 28, 2022 - Home Price Increases Continue
                              • Manufactured home dealers may benefit from increasing prices for traditional single-family homes. The S&P CoreLogic Case-Shiller National Home Price Index for February 2022 was up 19.8% compared to February 2021, marking the third-largest year-over-year gain the index has seen since its launch in 1987. Fannie Mae expects US home prices to post a full-year increase of 11% in 2022, then moderate to 3% in 2023 as higher interest rates and high home prices start to cool demand.
                              • Mortgage lenders who have traditionally been reluctant to go too far down in the home price spectrum are increasingly interested in manufactured homes, according to National Mortgage News. Greater interest is being driven by inventory shortages, rising prices, and higher interest rates that make traditional houses less accessible to a growing number of borrowers.
                              • Buyers of manufactured homes are typically dependent on third-party lenders and securing home-only financing (no land) is already difficult to obtain.
                              • US shipments of manufactured homes increased 2.2% month over month in February 2022, according to the US Census Bureau. On an annual basis, February’s sales were up 16.2%.
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