The U.S. is plagued by a housing crisis. One possible solution is manufactured housing, which can be produced quickly and relatively cheaply. A new federal housing law could supercharge the sector’s expansion. But to succeed, manufactured housing must overcome the stigmas against mobile homes and trailer parks.
Federal law, local codes Manufactured homes are quietly “filling the suburbs,” said The Washington Post. The dwellings were long looked down upon as “low-quality, less-safe housing” that was mostly “limited to trailer parks and rural properties” for decades, but higher-quality models are starting to spring up. Cost is a big factor, as the average price of a manufactured home is just $90,700.
Prebuilt housing is the “most efficient, effective way to allow homeownership” in the U.S., said Joel Farkas of Fruition Communities, which is planning an 8,000-unit neighborhood in the Denver suburbs, to the Post. The median single-family home price now runs more than $400,000, and elevated mortgage rates are “suppressing housing turnover, constricting supply and inflating prices,” said the progressive think tank Groundwork Collaborative.
Sears prebuilt home kits in the early 20th century made housing widely available and relatively inexpensive for generations of Americans. A proposed program to “deliver 500,000 high-quality, factory-built homes” across the country would create a “permanently affordable” source of housing that harkens back to those Sears homes, said the Groundwork Collaborative.
The new federal housing law does not go as far as Groundwork’s proposal. But the legislation “aims to slash some of the red tape” that has hindered construction of manufactured housing, said The Wall Street Journal.
‘More support’ needed One obstacle is that the feds “can only do so much” in a country where housing policies are largely set at the state and local levels, said the Journal. And manufactured housing still has its own “affordability problem” even with the red tape stripped out, said Politico.
Loans to buy such housing are different from regular mortgages and often feature interest rates “near double digits” that can “lock out many prospective buyers,” said the outlet. Now, some members of Congress want “more federal government support” to make factory-built home loans cheaper.
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