Manufactured homes market set to hit $42.7 billion by 2031

The manufactured housing market is expected to boom over the next few years, a new industry report found.

Mordor Intelligence expects the manufactured homes market size to expand from $28.5 billion in 2025 to $30.5 billion this year, and reach $42.7 billion by 2031 at a compound annual growth rate of 6.97%.

This trend is supported by the cost advantage factory-built homes have over traditional construction, making it an attractive option for first-time buyers and downsizers in a time marked by affordability struggles, the report said.

"The manufactured homes market reflects steady, demand-linked shifts shaped by affordability considerations and evolving housing preferences," said Jayveer Vora, senior research manager at Mordor Intelligence, in a press release Friday.

While single-family home prices have flattened as of late, mortgage rates above 6% have kept many site-built homes out of potential buyers' price range. Factory construction delivers a 60%-65% cost edge, with the average manufactured home priced at $123,000 compared with more than $300,000 for a conventional home, the report found. 

The U.S. Federal Housing price index for manufactured homes rose 7.9% from the second quarter of 2023 to the second quarter of the following year, which was still below the 11.4% increase for site-built homes during the same period.

With affordability concerns unlikely to fade away in the next few months, demand for manufactured homes is likely to remain stable rather than experience short-term fluctuations, according to the report.

In multiple regions, large housing deficits and supply shortages have further increased interest in manufactured homes, which can be delivered 30% to 50% faster than a traditionally built home due to the elimination of weather delays and reduction of skilled-labor requirements, the report said.

North America generated 40.8% of 2025 revenue in the global manufactured homes market, led by the United States' 103,000 unit shipments in 2024, a 16% jump year over year, the report found.

Regulatory tailwinds support future market growth as well. Department of Housing and Urban Development Secretary Scott Turner pointed to manufactured housing as a key to solving affordability and supply concerns last June. Since then, HUD said it planned to overhaul its manufactured housing program, including eliminating the chassis requirement. 

Freddie Mac also recently extended the maximum term for cashout refinances of manufactured housing loans from 20 to 30 years, aiming to support sustainable homeownership.

But zoning ordinance and the perception and approval of manufactured versus site-built homes still restrict the market from further growth, according to the report.