Why Manufactured Housing Isn’t the ‘Last Resort’
MHCs are the largest source of non-subsidized affordable housing in the U.S. for good reason, writes GMF Group's Matt Forssman.
Real estate investors are increasingly gravitating toward niche asset classes that offer opportunities for outsize value creation, and manufactured housing communities are a prime example. As the largest source of nonsubsidized affordable housing in the country, MHCs play a vital role in the lives of tens of millions of Americans, yet they remain largely misunderstood and underappreciated.
According to the National Association of Home Builders’ recent report, 76.4 million households, or 57 percent of all U.S. households, are unable to afford a $300,000 home. This reflects a deepening affordability crisis, and one that continues to make it harder for working families and first-time buyers to find a path to homeownership.
Despite their essential role in providing stable, low-cost housing, MHCs face persistent challenges, including outdated zoning laws, negative stereotypes and a general misunderstanding of how these communities operate. For those already engaged in the sector, however, the opportunity’s clear.
READ ALSO: Manufactured Housing Trends
One of the most compelling aspects of manufactured housing’s the ability to offer affordability without relying on government subsidies. Manufactured homes are built off-site in controlled environments to ensure quality and safety, then transported to a community. This efficient construction process significantly reduces both building and purchase costs. Unlike subsidized housing, MHCs are privately financed and operated, providing a market-driven solution that does not depend on public programs.
In GMF Group’s communities, for example, new and used manufactured homes typically range from approximately $20,000 to $100,000. After purchasing a home, residents are only responsible for monthly lot rent, utilities and certain common area charges. These costs are often significantly lower than those associated with apartment rentals or traditional homeownership.
Beyond affordability, manufactured homes offer stability and pride of ownership, along with coveted features like private yards, more personal space, and a true neighborhood feel. Because residents have a stake in their homes and surroundings, turnover is low. In many communities, residents stay for a decade or longer not out of necessity but by choice.
One of manufactured housing’s greatest challenges is supply. While demand for affordable housing continues to rise, the development of new MHCs remains hindered by restrictive local zoning codes. These regulations are frequently rooted in the mistaken belief that MHCs lower surrounding property values or pose safety concerns, despite evidence to the contrary. In key regions across the U.S., particularly in the Southeast, supply remains limited despite growing demand.
Manufactured housing should not be seen as a last resort. It’s a viable, dignified, and scalable housing option that already works for millions of Americans. The long-term success of this asset class will depend on how investors, developers, and policymakers choose to engage with it. Responsible operators have an opportunity not only to generate strong returns but also to reinvest in infrastructure, maintain affordability, and play an active role in shaping a more equitable housing market.
Manufactured housing may not solve the affordability crisis on its own, but it’s already helping to bridge the gap. It’s time to recognize the true value they offer and to include them in the national conversation about housing solutions.
Matt Forssman is a co-founder & managing partner of GMF Group overseeing all of the firm’s investments, strategic initiatives and fundraising.
