2. An Accelerating Housing Alternative
Total manufactured homes shipped during 2009 signaled the bottom for the industry, at 49,789 units. Since 2009, total shipments have steadily increased, reaching 70,519 for 2015, a 9.6% increase over 2014’s 64,344.
The improvement continued into January 2016 with 5,900 units shipped, increasing from December 2015’s 5,700 and besting January 2014’s performance of 5,000 by 18%.
Based on the latest data available (2014), manufactured home shipments represented just 9% of all site-built housing starts, with the remaining 91% single-family homes.

3. Higher Prices: A Sign of Greater Demand
According to US Census Bureau data through October 2015, the average sale price of new manufactured homes was higher for 9 of the 10 months when compared to the same months during 2014.
During 2014, 67% of new manufactured homes were placed in communities, a 3-point increase from Those located on private property declined 3 points to 33%.
The percentage of new manufactured homes titled as personal property reached an historic high of 80% during 2014 while those titled as real estate declined slightly from 14% during 2013 to 13% for 2014.

4. Positive Population Projections
US population trends should bode well for the manufactured homes industry. For many Millennials, a manufactured home is an affordable option, and many Baby Boomers, will choose them for their smaller size or as a second home for retirement.
The use of renewable materials and more energy-efficiency features will likely attract Millennials while the manufacture of higher-end homes in many more styles and finishes that look very much like single-family homes will appeal to Baby Boomers.
According to Marcus & Millichap, more investors are drawn to manufactured home communities because interest rates are low and these properties are delivering higher yields. Investor transactions increased 13% during the 12 months ending July 2015.

5. Strategically Located Manufacturing
The US manufactured housing industry is quite concentrated. Just 180 companies generate approximately $4 billion in annual revenues and 60% of those revenues belong to the top 8 manufacturers, including Cavco, Champion Enterprises and Clayton Homes.
Because transportation of new manufactured homes from factories to their locations is limited to approximately 350 miles, there are typically 1 or 2 states in a region where most of the manufacturing occurs for those regions.
The 2 dominant regions for manufactured housing production during 2015 were East South Center, with a 27.6% share of all units produced in the US, and West South Central, with a 24.9% share.

6. Advertising Strategies
Manufactured home dealers who offer larger models with the exterior features to match the look of a single-family home definitely want to use television to reach downsizing and/or retiring Baby Boomers who will be attracted to this option at a higher price point.
The visual power of television will also greatly benefit manufactured home communities to reveal their well-maintained grounds, security features, how residents personalize the exterior of their homes and easy, quick access to public transportation, shopping, etc.
With June through October the peak sales months, now is the time to help dealers plan special offers/incentives: a free grill and supermarket gift certificate for a super July 4th celebration in a new home, custom family nameplates from a local woodworker, etc.

7. New Media Strategies
Incentivize recent customers not only to write and post online reviews and recommendations, but also to post photos and videos of their new homes to show the attractive communities where they are located and the spaciousness of the interior.
Manufactured home communities should use social media to help forge a stronger community spirit with resident stories they write and post, announcements about local activities of interest to the residents and coupons/special offers from nearby retailers.
Dealers (with the help of manufacturers) can benefit greatly from the use of videos: showing the careful construction in the factory, a before and after of a “raw” model compared to how it looks placed and personalized in a community, bios of salespeople, etc.