According to data from the Manufactured Housing Institute, 106,000 HUD-coded prefabricated houses were shipped in the United States during 2021, compared to 94,000 shipped in 2020 and 95,000 in 2019.
Prior to 2019, annual shipments had increased every year since 2009, when 50,000 HUD-coded manufactured homes were shipped, the lowest level since the industry began keeping statistics in 1959.
Cavco Industries reports that manufactured housing offers an alternative to other forms of low-cost new housing, such as site-built homes and condominiums, and to existing housing, such as used houses and apartments.
According to statistics released by the U.S. Department of Commerce’s Institute for Construction Safety and Technology and the Census Bureau, wholesale shipments of manufactured homes built in accordance with the HUD code represented approximately 12.2% of all new single-family homes sold in 2021.
Cavco Industries, one of the largest manufacturers of manufactured homes in the United States, believes that the sector of the real estate market in which manufactured homes are most competitive includes consumers from diverse backgrounds with household incomes below $40,000.
This segment has a high representation of people aged 55 and over, as well as young singles and young married couples.
The low cost of a fully equipped manufactured home compared to a site-built alternative is attractive to these consumers.
People in rural areas and those currently living in manufactured homes also make up a significant portion of the demand for new manufactured homes.
The two largest demographics of manufactured home consumers, young adults and seniors 55 and older, are growing.
According to the World Bank, the adult population of the United States is estimated to expand by approximately 9.1 million between 2022 and 2027.
The 55+ category is reported to be the fastest growing segment of the US population.
This group is equally interested in the value proposition; however, they are also motivated by the energy efficiency and low-maintenance requirements of factory-built homes and the lifestyle offered by planned communities that are designed specifically for homeowners in this age group.
Cavco Industries competes with more than 30 manufacturers of manufactured homes, as well as new and existing apartments, townhomes, condominiums, and site-built homes.
There are a number of other national manufacturers vying for a significant share of the manufactured housing market in the United States, including Clayton Homes and Skyline Champion Corporation.
There are significant competitors to CountryPlace in the markets served. These competitors include national, regional and local banks, mortgage lenders and independent finance companies such as: 21st Mortgage Corporation, a subsidiary of Clayton Homes and Berkshire Hathaway; Triad Financial Services; and Cascade Financial Services.