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
Recent Developments
Apr 2, 2024 - Steady but Slow Industry Growth
- Manufactured home dealers are expected to experience steady but slow sales growth in 2024 after a softening of demand in 2023 and some solid gains during the pandemic. The industry’s year-over-year sales growth slowed to -2.7% in 2020, then jumped to 24.4% in 2021 and 12.4 % in 2022 before falling to 2.9% growth in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. Sales are projected to rise 2.6% in 2024, then see flat but steady average annual growth of about 2.9% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
- Federal housing agencies are working to make manufactured housing available to more consumers and to revitalize existing manufactured home communities, according to Globe St. The Federal Housing Administration (FHA) has revised methodologies for calculating home loan limits under the Title I Manufactured Home Loan Program so they align with current market prices. To remove barriers to the market for offering Title I loans, Ginnie Mae has relaxed the financial eligibility requirements for issuing Title I loans. In February of 2024, the Department of Housing and Urban Development (HUD) launched its Preservation and Reinvestment Initiative for Community Enhancement (PRICE) program, which offers $225 million in grants for manufactured home owners to improve their homes. Grants are also available to manufactured home community owners to upgrade property infrastructure, including water, sewer, utilities, and weatherization. Real estate investment services firm Marcus & Millichap suggests demand for manufactured housing will remain robust in 2024, particularly in warmer regions with high costs for single-family and multifamily housing.
- US shipments of manufactured homes increased 17.2% month over month in January 2024, according to the US Census Bureau. On an annual basis, November’s sales were up 7.1% compared to January 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 multifamily and single-family housing markets could boost manufactured home demand.
- 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 2023, 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.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.