Julie Johnson and her husband, looking for an affordable home, turned to an unexpected source: Facebook Marketplace. A month and $52,000 later, they found themselves the proud owners of a pre-owned 2,200-square-foot, four-bedroom, two-bathroom manufactured home. The home, which was cut in half for transport, was delivered to their property in central North Carolina.
Manufactured housing, commonly known as mobile homes, has seen a surge in demand amid America’s ongoing housing crisis. With rising mortgage rates and a severe shortage of available homes, many Americans are finding homeownership increasingly out of reach. A September CNN poll revealed that nearly one-quarter of renters cited housing costs as their top economic concern. As of September, the median price for an existing home in the US was $404,500, marking the 15th consecutive month of price increases, according to the National Association of Realtors.
In response to these rising costs, some Americans are turning to alternative housing options, such as foldable homes, tiny houses, and manufactured homes. Manufactured homes now make up approximately 6% of the US housing stock, with many located in rural areas. According to the US Census Bureau, more than 77,000 new manufactured homes were shipped by September 2024, representing a 16% increase from the previous year.
While these homes can be more affordable than traditional houses, the process of purchasing and installing them comes with its own set of challenges. Recent manufactured homes available through platforms like Amazon, including foldable units priced under $25,000, have gone viral on social media sites like TikTok and YouTube, especially among younger people seeking a more economical path to homeownership. Amazon, however, did not respond to inquiries about its manufactured home offerings.
Historically, manufactured homes have been marketed in the US for over a century. In the early 1900s, Sears, Roebuck and Co. sold kit homes, where pre-cut lumber and other materials were shipped to buyers for assembly. Around 75,000 of these homes were sold between 1908 and 1940. But modern manufactured homes face more regulatory hurdles, as local zoning laws and building codes can restrict their placement.
Marc Norman, an associate dean at New York University’s Schack Institute of Real Estate, explained that zoning regulations have become stricter over time, making it difficult to buy land and simply place a manufactured home. In fact, every local jurisdiction has its own set of regulations that can vary significantly from neighboring areas. Some towns even ban manufactured homes altogether.
Julie Johnson and her husband spent an additional $10,000 to lay a brick foundation for their home, a requirement in their area. They also had to install a septic tank and water well, which delayed their move-in. Despite the challenges, Johnson said they were well-prepared due to extensive research and communication with local authorities.
Federal regulations now require new manufactured homes to be installed on permanent foundations, effectively eliminating the “mobile” aspect of the homes. However, these homes are increasingly vulnerable to climate-related risks. A 2023 Urban Institute paper highlighted that manufactured homes are more susceptible to damage from natural disasters, as they are often located in areas prone to floods and wildfires.
Julie Johnson has shared her journey on TikTok, where her videos detailing the purchase and installation of her home have garnered millions of views. She explained that her decision to buy a manufactured home was driven by the high cost of traditional houses, as her family home cost $400,000 to $500,000 to build.
While Johnson’s home sits on family-owned land, many manufactured homeowners rent the land beneath their homes. This can complicate access to traditional mortgages, forcing many buyers to seek more expensive personal property loans instead.
In a letter from September, Patrick Harker, president of the Federal Reserve Bank of Philadelphia, expressed concern over the rising rents for land leased to manufactured homeowners. He noted that investors purchasing land under these homes and increasing rents could threaten the affordability of this housing option, which has traditionally been viewed as an affordable pathway to homeownership.
Despite these concerns, Johnson is determined to educate others about the benefits and potential pitfalls of owning a manufactured home. She continues to inspire her followers by sharing her experiences, answering questions about cost and logistics, and challenging the stereotype that manufactured homes sacrifice comfort or space compared to traditional houses.
“I think it does inspire people,” Johnson said. “I get a lot of questions like ‘how did you do it?’ and ‘how much does it cost?’ People want to do it.”
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