Key facts
- A new policy provision will remove the 1974 mandate requiring manufactured homes to be built on a permanent steel chassis.
- This change is expected to reduce construction costs and allow for more diverse and larger housing designs.
- Manufactured homes are currently 50% cheaper per square foot than traditional site-built homes.
- The removal of the chassis requirement aims to improve the perception and acceptance of manufactured housing.
- This policy shift could enable manufactured homes to be classified as real property, facilitating access to traditional mortgages.
A significant policy shift is on the horizon that could dramatically alter the landscape for manufactured housing in the United States. The 21st Century ROAD to Housing Act, nearing enactment, includes a provision to eliminate a 1974 mandate requiring manufactured homes to be built on a permanent steel chassis.
Industry stakeholders assert that removing this requirement will not only reduce construction costs, making homes more affordable, but also unlock greater design flexibility. This could allow for larger, more innovative structures, enabling manufactured housing to penetrate urban infill markets and gain broader acceptance. Currently, manufactured homes are 50% less expensive per square foot than traditional site-built homes, providing a crucial affordability solution for many Americans.
Despite their affordability, new manufactured home shipments have seen a substantial decline from their historical peaks. Outdated regulations, such as the chassis requirement, along with persistent reputational challenges, have limited the industry's growth and confined its perception primarily to rural areas. Lesli Gooch, CEO of the Manufactured Housing Institute, highlighted that manufacturers have been innovating for years, and the removal of the chassis will accelerate this progress.
Beyond design and cost, eliminating the permanent chassis requirement could help dispel misconceptions about manufactured homes being solely movable structures. Advocates suggest this could lead to manufactured homes being classified as real property, granting buyers access to conventional 30-year mortgages rather than more expensive chattel loans. Aesthetically, the change is expected to allow manufactured homes to blend more seamlessly into existing communities, resembling site-built homes and potentially overcoming zoning hurdles.
This policy change builds upon previous HUD decisions that have gradually expanded manufactured housing possibilities, including allowances for zero-lot-line townhouses and multi-unit dwellings. The removal of the chassis is anticipated to further empower manufacturers to develop higher-density, multi-story housing options, expanding market reach into previously inaccessible areas.