The U.S. Department of Housing and Urban Development (HUD) just opened the floodgates for manufactured home builders with a long-awaited update that allows up to four units within a single structure. It’s the biggest change to the HUD Code in more than 30 years, and it’s aimed at modernizing manufactured housing to make it more attractive and affordable.
Nationwide’s Longwood Duplex
What does this mean for the industry? Builders can now get to work on multi-unit manufactured homes immediately, provided they meet HUD’s standards. No need to wait the usual six months for the regulation to kick in. This move is expected to push manufactured housing into more urban and suburban areas, where density is key to solving the housing crunch.
HUD’s Acting Secretary, Adrianne Todman, said it best: “This update of the HUD Code is long overdue and will help increase production while also ensuring modern designs to suit the needs of families.”
It’s a breath of fresh air for an industry that saw production soar to 350,000 homes a year in the late 1990s, only to plummet to around 100,000 homes annually today, according to Harvard University’s Joint Center for Housing Studies. Local zoning laws, outdated perceptions of manufactured homes, and tighter lending rules have been major obstacles.
But Jim Trepinski, factory manager at Cavco Industries in Rocky Mount, Virginia, is optimistic. His company got the green light from HUD earlier this year for a pilot project to build duplexes, and now the agency has expanded approval nationwide, with options for three- and four-unit homes.
“It’s pretty exciting that HUD has opened the door for this to happen,” Trepinski told CoStar News. “It has the potential to have a significant impact on the crisis we have with affordable housing.”
And let’s not forget the stigma that still follows manufactured homes like a bad rumor. Trepinski is quick to point out that today’s materials are on par with site-built homes, and manufactured homes have the advantage when it comes to cost and speed. Many still confuse them with mobile homes built before the 1976 HUD regulations, which weren’t even affixed to the ground.
In reality, manufactured homes are constructed in a factory under HUD oversight, saving costs and ensuring consistency. Thanks to HUD’s updated regulations, they’re built more efficiently, passed savings on to the homeowner, and can now include modern designs like open floor plans and attics.
Lesli Gooch, CEO of the Manufactured Housing Institute, summed it up perfectly in her statement to CoStar News: “The updates to the construction code for manufactured housing will support the industry in delivering homes with innovative designs and modern features, bringing attainable home ownership to more people across the country.”
In short, this could start a new era for manufactured housing. Let’s hope the zoning boards are paying attention.
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