Policy Change Could Boost Manufactured Housing Affordability

The 21st Century ROAD to Housing Act is expected to pass this week, including a provision that will eliminate a 1974 mandate requiring manufactured homes to be built on a permanent steel chassis. This policy change is anticipated to significantly reduce manufacturing costs for these homes, thereby improving affordability for potential homeowners. Manufactured housing currently costs 50% less per square foot than traditional site-built homes, according to the Manufactured Housing Institute, making it one of the most accessible housing options in the United States. Despite this affordability advantage, the number of new manufactured home shipments has declined substantially from its peak. In 2025, there were just over 100,000 new manufactured home shipments, a stark contrast to the approximately 373,000 shipments in 1998 and a peak of roughly 600,000 annually in the early 1970s. Industry stakeholders believe that removing the steel chassis requirement will not only cut costs but also unlock greater design flexibility. This will enable larger, more innovative housing designs that can appeal to a broader customer base, penetrate urban infill markets, and gain wider acceptance from residents and local officials. Lesli Gooch, CEO of the Manufactured Housing Institute, stated in an interview with HousingWire TBD that manufacturers have been actively improving their building envelopes and systems to overcome outdated perceptions and stigmas. The removal of the chassis requirement is seen as a crucial step to accelerate this innovation and foster broader adoption of manufactured housing.