Manufactured housing has quietly become one of the most effective tools for addressing the U.S. housing affordability gap. While much of the spotlight goes to Class A multifamily and single-family build for rent, manufactured housing keeps delivering what the market urgently needs: stable housing at practical price points.
At Berkadia, we have seen capital follow that story. Between 2023 and 2024, Berkadia closed $2.06 billion in manufactured housing community (MHC) transactions, including $1.88 billion in MHC financing across 138 loans and $183.4 million in MHC investment sales across 14 transactions, as the investment base has continued to broaden with more institutions seeking need-based housing exposure. That experience shapes how we look at the Affordable HOMES (Housing Over Mandating Efficiency Standards) Act.
What the Affordable HOMES Act Does
For over 50 years, HUD has set and enforced national construction and safety standards for manufactured homes. In 2007, the Department of Energy was given its own authority to set energy standards using a framework designed for site-built homes, creating a situation where two federal agencies had a say in how the same home gets built.
The Affordable HOMES Act simplifies that by:
- Restoring HUD as the single federal standard setter for construction and energy efficiency in manufactured housing.
- Moving DOE into an advisory role, providing technical input without creating a second, overlapping regime.
For manufacturers, lenders, and investors, this means one set of standards, one primary regulator, and fewer surprises.
Why That Matters to Capital and Dealmakers
Manufactured housing is compelling because it sits at the intersection of durable demand, limited new supply, and relatively low capital cost per unit. It is also sensitive to regulatory friction, which is why a clearer framework matters.
- Creates a more predictable cost structure, allowing manufacturers to design and scale to a single, integrated code and keep pricing within reach for cost sensitive households.
- Reduces regulatory noise in underwriting, making it easier to size loans, assess CapEx, and underwrite long term performance.
- Makes the asset class a better fit for long term capital, as consistent standards and policy coherence support larger, more strategic commitments
HUD Is Modernizing the Product
The timing of the Affordable HOMES Act is notable because HUD is already in the middle of the most significant update to the HUD Code in decades. Those changes are aimed at:
- Allowing more flexible formats, including multi-unit single family manufactured homes.
- Bringing in modern design and accessibility features.
- Encouraging energy efficient appliances and systems that lower operating costs for residents.
Manufactured homes are becoming more flexible, more efficient, and more attractive to a broader range of markets.
The Opportunity for CRE Stakeholders
For commercial real estate professionals, this alignment of policy and product creates clear opportunities:
- Developers and operators can treat manufactured housing as a scalable tool for delivering affordable units, whether in dedicated communities, infill locations, or alongside other housing types.
- Owners gain more clarity around future standards, supporting long term planning, reinvestment, and value-add strategies in existing communities.
- Lenders and investors get a cleaner regulatory backdrop, making it easier to lean into the asset class with confidence.
Policy alone does not build homes, but the Affordable HOMES Act is a step toward a more predictable environment for manufactured housing that aligns with HUD’s modernization efforts and the market’s need for more attainable housing options. This is one more signal that manufactured housing is not a niche. It is a core part of the housing ecosystem, and its importance is only growing.
– Kevan Enger, Senior Managing Director, Manufactured Housing
For insights tailored to your portfolio and pipeline, contact Berkadia’s Manufactured Housing team.