The State of Manufactured Housing

By Enon Winkler

Few sectors of real estate have undergone a perception shift as significant as manufactured housing. For decades, manufactured housing communities operated largely under the radar of institutional investors. The asset class was often misunderstood and viewed as a niche corner of the housing market. Today, that narrative has changed dramatically.

Manufactured housing now sits at the center of one of the most pressing issues facing the United States: the growing shortage of affordable housing. As home prices and apartment rents continue to rise across the country, manufactured housing and manufactured housing communities, in particular, have emerged
as one of the few scalable solutions capable of delivering both affordability and stability.

As we move through 2026, the industry appears to be entering a new phase — one defined less by rapid acceleration and more by maturity, discipline, and increasing recognition of the sector’s importance.

Production Still Lags Demand

Manufactured home deliveries have stabilized near the 100,000- unit range annually after several volatile years.

Production slowed in 2023 as higher interest rates and tighter consumer financing weighed on demand before rebounding modestly in 2024 and leveling off through 2025. While stabilization is encouraging, the broader context highlights a much larger issue.

In the late 1990s, the industry produced more than 350,000 homes per year. Today’s output is less than one-third of that level despite a significantly larger population and a dramatically greater need for affordable housing.

The cost of new manufactured homes has also risen alongside broader construction inflation. Materials, transportation, and installation expenses have all increased. Yet even with these pressures,
manufactured housing remains one of the most attainable paths to homeownership in the United States.

That affordability advantage continues to anchor the industry’s long-term demand.

Capital Markets Find New Equilibrium

Capital markets have also experienced a meaningful reset. Between 2020 and early 2022, historically low interest rates and intense investor demand pushed pricing for manufactured housing communities to record levels. Cap rates compressed significantly as institutional capital entered the sector in search of durable yield and recession-resistant assets.

Between 2020 and early 2022, historically low interest rates and intense investor demand pushed pricing for manufactured housing communities to record levels, and cap rates compressed significantly.

Today, the market is beginning to find equilibrium. Cap rates have expanded modestly from historic lows, but the core investment thesis remains intact: manufactured housing communities continue to offer durable occupancy, predictable cash flow, and strong long-term fundamentals. In many cases, there are signs of values moving back in line with past seller expectations.

Operational Excellence Becomes Critical

Operational performance across manufactured housing communities remains among the strongest in residential real estate. Occupancy levels remain consistently high, and resident turnover tends to be relatively low compared with other housing sectors.

However, expectations for ownership and management are evolving.

As the industry gains greater attention from policymakers and residents alike, professional management and responsible operations continue to be important. Many manufactured housing communities across the country were developed prior to 1980, making infrastructure planning and capital investment critical for long-term sustainability.

Operators are increasingly focused on infrastructure improvements, strengthening community standards, implementing technology, and filling vacant sites with new homes. Inll remains one of the most effective strategies to both increase housing supply and enhance property value.

Global Forces Still Shape the Landscape

As the industry gains greater attention from policymakers and residents alike, professional management and responsible operations continue to be important.

More importantly, energy spikes can fuel inflation, pushing Treasury yields higher and increasing borrowing costs across the housing sector, which could impact transaction activity and pricing expectations.

For manufactured housing professionals, the effects can be mixed. Higher interest rates may slow transaction activity while demand for more affordable housing options increases.

An Industry Becoming Essential

The long-term outlook for manufactured housing and the communities we operate remain highly compelling.

The United States continues to face a structural shortage of affordable housing, and few sectors are as well-positioned to address that challenge as manufactured housing. The combination of affordability,
scalability, and operational resilience makes the asset class uniquely valuable within the broader housing ecosystem.

Manufactured housing communities are no longer viewed simply as an alternative housing option or a niche investment strategy. This shift is evident in the continued technological advancements in community operations.

Today, manufactured housing is emerging as an essential component of the nation’s housing infrastructure. As affordability remains one of the most pressing issues in the housing market, the role of manufactured housing will only continue to grow in importance in the years ahead.

Enon Winkler is an Executive Managing Director with Sunstone Real Estate Advisors with more than 20 years of brokerage experience and more than $3 billion in successful sales. Winkler is a seasoned investor, entrepreneur, and business leader skilled in navigating transactions ranging from straightforward to highly complex.

This article originally appeared in the print and online versions of the May/June Issue of MH Insider and was written by Enon Winkler