Manufactured Housing Outlook: Summary of Our Presentation at Texas MHA’s Annual Convention

Housing affordability remains a significant obstacle for buyers, creating an opportunity for manufactured housing to gain share. However, the industry faces the same economic pressures weighing on the broader market, alongside aggressive homebuilder incentives and increasingly competitive rental options.
 
We recently gave a presentation at the Texas Manufactured Housing Association’s Annual Convention. As we highlighted in our presentation, manufactured housing’s relative affordability remains its key advantage. The all-in manufactured home payment is approximately 20-30% below purchasing an existing home and 6% below renting a single-family home. Compared with apartment rent, however, the payment is approximately 7% higher, making the competitive position more nuanced when attracting renters.
 
Site-built homebuilders are working hard to entice potential buyers (likely those considering higher-cost multi-section homes) to purchase their product. In the second quarter of 2026, approximately 81% of builder mortgages included rate buydowns. Rising resale inventory and softer prices in several Texas markets also give prospective buyers additional alternatives.
 
Rental conditions present another challenge. Slower single-family rent growth and apartment concessions reduce the urgency for renters to purchase. For manufactured housing retailers and community operators, this means competing against rental options that have become more affordable. The opportunity to own, along with additional space, remains an important part of the value proposition and should be the key selling point for this cohort.
 
Meanwhile, rising material and transportation costs also pressure manufacturers and retailers serving buyers with limited room in their budgets.
 
In all, Texas, which accounts for approximately one-sixth of national shipments, remains central to the outlook. Its recently effective Senate Bill 785 could expand placement opportunities, although the impact will depend on local implementation.