Dive Brief:
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As the single-family home market struggles to recover, the demand for manufactured housing is booming.
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There are several reasons for the boom, according to real estate brokerage firm Marcus & Millichap. A lack of affordable housing, the demand for second homes among Baby Boomers, and a surging need for temporary housing in energy-boom areas in North Dakota, Ohio, Pennsylvania, and Texas have made manufactured homes hot properties.
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As of May, new manufactured home placements were 4.4 percent higher than a year ago. About 70% of them were in the South.
Dive Insight:
Competition for manufactured houses is pushing up rents and sales prices. Even investors are buying the prefab homes, especially higher-end models and those located in communities equipped with energy, water, and sewer services.