The United States is in the midst of an affordable housing crisis. Rapidly increasing home prices and rents that have outpaced the growth of family incomes have created challenges for homeowners and renters alike. The existing stock of affordable housing is rapidly declining, as each year the nation loses two affordable apartments for every new one created. Nationwide, extremely low-income renters face a shortage of over seven million rental homes within their affordability range. Factors contributing to the depleting supply include the deterioration of housing and the departure of private owners from the affordable-housing market.
Renters are especially burdened by the current housing market. From 2017 to 2022, the average rent increased at a greater rate than inflation. Increasing rent costs are burdening the lowest income Americans, as “[p]eople with lower incomes . . . [are] more likely to be renters.” Nearly half of American renters spend thirty percent or more of their income on housing costs, which meets the U.S. Department of Housing and Urban Development’s definition of being “cost burdened.” Additionally, nearly a quarter of renters spend at least fifty percent of their income on housing. Rent increases are expected to continue, and there is no relief on the horizon for renters.
Renting creates uncertainty and instability for many Americans, whereas homeownership provides a path to housing security and equity. The reality, however, is that homeownership is unattainable for most Americans, and a lack of affordable housing deprives many families of the opportunities that previous generations have had to build generational wealth.
Normally, people become homeowners by purchasing a site-built home, which is a type of home constructed and assembled on the home’s permanent site. However, site-built homes are financially inaccessible for many Americans, especially those who are low- to medium-income. The average home buyer faces obstacles to attaining a site-built home due to exceedingly high median home prices.
Manufactured housing, on the other hand, offers a financially realistic path to homeownership for those who otherwise could not afford it. Manufactured housing is distinct from other types of housing in both affordability and production. Manufactured homes are constructed in factories on a permanent chassis and then transported to a lot that the homeowner either owns or rents. Federal standards regulate manufactured housing construction, which results in high-quality structures that are indistinguishable from their site-built counterparts in terms of quality and safety. Thus, manufactured homes offer an affordable alternative to site-built homes without sacrificing quality. The unique affordability of manufactured homes provides an accessible avenue to housing security and opportunities to build generational wealth.