In Petersburg, Virginia, a construction team recently pushed together two halves of a brand-new factory-built house in the Delectable Heights neighborhood. Once set with its pitched roof and front porch, it will blend in with other single-family homes on the street. The home is one of dozens being placed on permanent foundations by developer Tom Heinemann, who is targeting low- and moderate-income families with both rental and for-sale manufactured homes.
For decades, manufactured homes faced stigma and were confined to trailer parks. But updated designs, higher-quality construction, and a severe housing shortage have prompted cities and states to reconsider factory-built homes as an affordability solution. Nine states have already relaxed zoning restrictions, and legislation is advancing in Virginia and Congress.
What the Left Is Saying
Progressive advocates and housing policy experts say manufactured homes represent a rare opportunity to create affordable housing without heavy government subsidies. Rachel Siegel of the Pew Charitable Trusts noted that manufactured housing can fill the gap in starter homes, which are no longer being built at affordable price points. "Manufactured housing really can fill that gap very well, without subsidy, which is unique for this type of housing," Siegel said.
Housing advocates argue that expanding factory-built homes supports working families and addresses racial wealth gaps. City Councilman Howard Myers, whose Petersburg district includes the Delectable Heights neighborhood, said the new homes are helping longtime residents build wealth while transforming areas hit hard by manufacturing job losses. "When you have a dilapidated home, two and three and four to a block, and you're the only homeowner on the block, it drastically affects your ability to maintain your financial wealth," he said.
Progressive supporters also point to pending federal legislation that would end the requirement for factory-built homes to have a permanent chassis, enabling more flexible design and easier integration into suburban and urban neighborhoods.
What the Right Is Saying
Conservatives and free-market advocates see manufactured housing as a market-driven solution to high housing costs that reduces regulatory barriers. Developer Tom Heinemann, who is building the Petersburg homes through his company MH Advisors, frames the approach as giving people "the amenities that people generally like about single-family homes" at prices they can actually afford.
Some local residents have pushed back against factory-built homes, relying on what Heinemann called "old tropes" about depreciation and quality. In Harrisonburg, Virginia, he faced lengthy public hearings where residents expressed opposition to an 800-unit manufactured housing project. After explaining that modern factory-built homes meet high construction standards, he ultimately received approval.
Conservatives also support streamlining the financing process for manufactured homes. Because these homes are often classified as personal property rather than real estate, buyers face higher interest rates and more difficult financing terms. Industry advocates argue that modernizing state policies to treat manufactured home mortgages like traditional mortgages would improve affordability without government intervention.
What the Numbers Show
Factory-built homes cost nearly half as much per square foot to construct compared to traditional on-site building, according to housing industry data. A 990-square-foot two-bedroom model with an attached garage and front porch can be constructed in approximately six days, according to Colt Davis of Clayton Homes, who showcased the home at a HUD housing event on the National Mall.
Nine states have relaxed zoning restrictions on manufactured homes, and Virginia lawmakers have passed similar legislation. Housing industry experts estimate that such homes can be brought to market at $250,000 or less in most areas, significantly below median home prices in many markets.
In Petersburg, nearly four dozen manufactured rental homes have been built using a federal tax credit and are restricted to lower-income residents. Ten additional homes are being sold immediately. Renters like Kennisha Missouri, who moved into a four-bedroom manufactured home last December, pay lower rent than they did for smaller apartments while having the option to buy after 15 years.
Proposed federal legislation would eliminate the requirement that factory-built homes have a permanent steel chassis, a change that industry experts say could cut construction costs further and allow more flexible designs including second stories and basements.
The Bottom Line
Factory-built housing is emerging as one of the few market-based solutions to America's affordability crisis, but significant barriers remain. While nine states have eased zoning restrictions and pending federal legislation could reduce construction costs, buyers still face difficulty financing manufactured homes because they are often classified as personal property rather than real estate. The stigma associated with manufactured housing persists in some communities, though developers say potential buyers become converts once they see the homes in person. As housing costs continue to push working families out of many markets, manufactured housing is likely to play an expanding role in policy discussions at the state and federal levels.