With housing affordability challenges continuing across the United States, more states are turning to innovative solutions to meet growing demand. One standout option: manufactured housing. Factory-built homes are rapidly gaining popularity as an efficient and cost-effective way to boost housing supply, particularly in states like North Carolina, which now ranks third nationally for new manufactured home shipments.

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A Growing Demand for Factory-Built Housing

Manufactured housing, homes built in factories and transported to their final location, has become a cornerstone of affordability for many Americans. These homes are not only quicker to build, but they also benefit from streamlined construction processes and materials, making them more accessible to a wider range of households.

More than 22 million Americans now live in manufactured homes, with approximately 1 in 10 new homes built in the U.S. each year falling into this category. In recent years, improvements in quality, energy efficiency, and modern designs have further increased their appeal.

Manufactured Housing is Rebounding

After a sharp decline in 2023, factory shipments of manufactured homes rebounded to over 100,000 units in 2024. By mid-2025, the annualized rate had climbed even higher, signaling renewed momentum in the sector. This recovery has outpaced traditional site-built housing, which has remained relatively stagnant due to persistent material and labor costs.

The South Leads the Way

Southern states have emerged as the primary drivers of growth in manufactured housing. Texas and Florida lead the nation in total shipments, but North Carolina isn’t far behind, ranking third with over 6,700 manufactured homes shipped in 2024. This reflects both strong demand for affordable housing and supportive state policies that promote alternative homebuilding methods.

In several Southern and rural states, manufactured housing represents a significant share of new single-family housing, helping fill gaps where conventional construction struggles to keep up with demand.

Affordability Gap Continues to Widen

Manufactured homes remain a more attainable option for many households. While prices have risen across the housing market, the gap between manufactured and site-built homes has actually widened in recent years. Even accounting for land value, factory-built homes often provide a lower-cost pathway to homeownership without sacrificing comfort or design.

Nationwide, manufactured homes are helping to expand access to housing in both urban and rural settings, serving as starter homes, downsizing solutions, or even long-term residences for people seeking stability in uncertain times.

North Carolina’s Manufactured Housing Snapshot

  • Total Manufactured Home Shipments (2024): 6,768
  • Share of New Single-Family Homes: 8.8%
  • Permits for Site-Built Single-Family Homes: 70,047

Compared to the national average of 9.5% of new homes being manufactured, North Carolina’s embrace of factory-built housing signals both a practical and strategic response to housing shortages.

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Looking Ahead

As more states evaluate ways to close the housing gap, manufactured housing is poised to play a key role in future development. With modern designs, energy-efficient upgrades, and quicker build times, it offers a compelling alternative to traditional home construction. North Carolina’s strong performance in this sector highlights just how impactful manufactured housing can be when supported by demand, policy, and planning.

For communities seeking real solutions to housing affordability, factory-built homes may not just be an option; they might be the answer.