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Current State of Mobile Home Industry in 2023

The mobile home industry in Central Texas has seen significant growth in recent years due to the region’s population boom and affordable housing options. According to data from the U.S. Census Bureau, the population of the Austin-Round Rock metropolitan area grew by 28.2% from 2010 to 2020, making it the fastest-growing large metro area in the country. As a result, the demand for affordable housing has increased, and mobile homes have become an attractive option for many buyers.

 

According to the Texas Manufactured Housing Association (TMHA), there are over 1,000 licensed mobile home retailers and installers in Texas, with Central Texas being one of the largest markets. In 2020, the TMHA reported that Texas had the third-highest number of manufactured homes in the country, with over 1.7 million units.

 

The average price of a new manufactured home in Texas is $89,704, according to the Manufactured Housing Institute. This is significantly lower than the average price of a new site-built home in the state, which was $323,122 in 2020, according to the Texas A&M Real Estate Center.

 

The affordability of mobile homes has made them a popular option for both first-time homebuyers and retirees. Many retirees are downsizing from larger homes and finding that mobile homes provide a comfortable and affordable alternative. According to a study by the AARP, 80% of manufactured homeowners are over the age of 50.

 

One of the advantages of mobile homes is that they can be installed on a variety of properties, including private land and mobile home parks. In Central Texas, there are several mobile home parks that cater to both families and retirees, offering amenities such as swimming pools, playgrounds, and community centers.

 

Despite the affordability and convenience of mobile homes, there are some challenges facing the industry. One of the main issues is the perception of mobile homes as being low-quality and less desirable than site-built homes. While this may have been true in the past, modern manufactured homes are built to the same safety and quality standards as site-built homes and can be customized to meet a buyer’s specific needs.

 

Another challenge is the lack of available financing options for mobile homes. Many lenders are hesitant to offer financing for mobile homes due to the perception that they are a risky investment. This can make it difficult for buyers to secure a loan and can limit the pool of potential buyers for mobile homes.

 

Despite these challenges, the mobile home market in Central Texas is expected to continue to grow in the coming years. According to a report by MHI, the demand for manufactured housing is expected to increase by 7.5% annually through 2025. This is due in part to the affordability of manufactured homes, as well as the increasing demand for affordable housing in general.

 

One factor that is driving the growth of the mobile home market in Central Texas is the increasing popularity of tiny homes. Tiny homes are similar to mobile homes in that they are smaller and more affordable than traditional site-built homes. However, they are typically built on a trailer and can be moved from place to place, much like a mobile home.

 

The popularity of tiny homes has led to an increase in the number of mobile home retailers offering tiny home options. According to a report by the Tiny Home Industry Association, there are over 50 tiny home builders in Texas, many of whom are based in Central Texas.

 

In addition to tiny homes, there are other innovations in the mobile home industry that are helping to change the perception of manufactured homes. One example is the use of modular construction techniques, which allow for faster and more efficient construction of mobile homes.

 

Modular homes are built in sections in a factory and then transported to the installation site. This allows for greater control over the construction process and can result in much cheaper construction costs. This reduction in costs helps to drive demand even when other forms of housing are expensive. 

 

For 2023, we at Mobile Bye Bye don’t see any reason to believe the manufactured housing industry to stall or slow even if other forms of housing see a slow down.

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Mobile Bye Bye