Low manufactured home construction constrains affordable housing

Fannie Mae: Production has plummeted by nearly 90 percent since 1998

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Manufactured home construction stands at a severely depressed level, disproportionately constraining the supply of affordable housing, Fannie Mae said in its latest Housing Insights report. While overall home construction plummeted by 70 percent between 2006 and 2011, manufactured home construction continued along a descent that began in 1998, according to the report. Fannie Mae said since hitting a high of 374,000 units that year, manufactured home construction has nosedived by nearly 90 percent due largely to a drop-off in credit availability for manufactured housing. In 2012, manufactured home production accounted for just 7.4 percent of total housing construction, down from 20.2 percent in 1998, Fannie Mae reported. "Given manufactured housing’s modest share of the total housing stock, the decline in manufactured home production might not seem important. However, manufactured homes account for an outsized share of low-cost housing, particularly among owner-occupants," ...