Key facts
- Cavco Industries and Champion Homes executives believe removing the permanent chassis requirement for manufactured homes offers greater design flexibility.
- The removal of the permanent chassis requirement is enabled by the 21st Century ROAD to Housing Act.
- Executives anticipate the change will provide greater market access for manufactured homes.
- The companies do not expect significant immediate cost savings from the chassis removal.
- Business results from this change are likely to take over a year to materialize.
- The legislation allows manufactured homes to be built without being permanently affixed to a chassis.
- This change could lead to more diverse housing options for consumers.
Executives from Cavco Industries and Champion Homes foresee significant long-term growth stemming from the removal of the permanent chassis requirement for manufactured homes. This regulatory change, made possible by the 21st Century ROAD to Housing Act, is expected to unlock greater design flexibility and broader market access for manufactured housing. While the immediate impact may not involve substantial cost reductions, the companies view this as a strategic opportunity for future expansion and innovation.
The legislation allows manufactured homes to be built without being permanently affixed to a chassis, which has historically been a requirement. This alteration in design and construction standards is anticipated to lead to more diverse and potentially more appealing housing options for consumers. The companies are positioning themselves to leverage these new possibilities, focusing on how the enhanced design freedom can translate into increased sales and market share over time.