HUD Accelerates Manufactured Housing With New Action Plan

The U.S. Department of Housing and Urban Development (HUD) unveiled an action plan on Wednesday aimed at accelerating the construction of manufactured housing. This initiative includes updating energy efficiency standards, revising design and construction codes, and supporting the scaling of the industry. These efforts build upon recent federal actions intended to reduce the overall cost of building manufactured homes. A significant legislative change this year was the bipartisan 21st Century Road to Housing Act, which eliminated the requirement for manufactured homes to be built on a permanent steel chassis. This change is projected to lower construction costs by an estimated $10,000 per unit, as most manufactured homes are intended to remain on a single site after delivery. Complementing this federal law, HUD is also amending its own code to permit the construction of multistory manufactured housing. This allowance will enable larger homes to be transported to their final locations, potentially increasing the size and variety of available manufactured housing options. Manufactured housing, encompassing everything from pre-fabricated building materials to fully factory-assembled homes, is recognized by experts as a viable alternative construction method that can lead to more affordable housing. However, the sector faces challenges, including a persistent stigma and the need for greater awareness and financial support to achieve wider adoption. HUD Secretary Scott Turner emphasized the enduring significance of the HUD Code, stating in a company release, "For 50 years, the HUD Code has provided a national framework for safe, quality, affordable housing." He further elaborated that HUD is now "building on that foundation to expand innovation in design and construction for the next generation of manufactured homes to unleash the American Dream for even more families." HUD views manufactured housing as being at an "important transition point," with the repeal of the chassis requirement opening up new construction possibilities. The agency believes this is an opportune moment to modernize the building code, incorporating new innovations and construction techniques to better reflect the evolving landscape of the industry and to make housing more accessible, particularly for first-time homebuyers.