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Manufactured Homes to Ease Housing Shortages?

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The federal government may increasingly be eyeing manufactured housing as one potential solution to ease shortages of affordable homes across the country. Mortgage financing giants Fannie Mae and Freddie Mac announced plans in January to purchase more manufactured housing loans over the next three years. Further, the U.S. Department of Housing and Urban Development recently announced it is reviewing regulations surrounding manufactured housing.

Manufactured homes are built in a factory and then relocated to a home site. They differ from prefab homes, which have parts made in a factory but are then mostly constructed on-site. Manufactured homes, once referred to as mobile homes, often cost a fraction of median price of a new single-family home, such as $45,000 versus $323,000, respectively.

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