Manufactured housing in U.S. to reach 85,000 units in 2020
Manufactured housing's share of all single-family housing units was elevated in the 1990s due to very accessible credit, but declined through 2005.
That happened as the industry became more wary of its former easy credit policies, while lower interest rates and new financial instruments for subprime borrowers made conventional housing a more attractive option for many home buyers.
However, faced with higher mortgage interest rates when their adjustable-rate loans were reset, amplified when the Federal Reserve tightened its monetary policy in 2005, many borrowers defaulted on their mortgages.
This created tremendous volatility in financial markets and forced many lenders to change their practices.
Furthermore, this led to a glut of repossessed houses in the market and limited any demand gains in manufactured housing.
These and other trends are presented in Prefabricated Housing Market in the U.S., 14th Edition, a new study from The Freedonia Group, a Cleveland-based industry research firm. ■