Makers of manufactured homes have raised their game in recent years, and mortgage giants Fannie Mae and Freddie Mac have responded by backing mortgages and higher-end prefab homes.

"When you look at the quality of our construction, some people think that we're talking about grandma's trailer, and that's clearly not what we're producing today," says Lesli Gooch, Executive Director of the
Manufactured Housing Institute.

Prefab homes are no cure-all for the housing shortage - many municipalities don't allow manufactured homes, financing can be tricky and consumer perceptions about old-school single-wide trailers die hard. But proponents of manufactured housing say the property type offers at least some relief to the nationwide shortage of homes.

Meet the Durans, the Durans brought a model from Clayton Homes that started at a base price of $198,000. After adding options, the price ballooned to $300,000.

Even so, manufactured housing is significantly cheaper than site-built construction. The average price per square foot for manufactured homes in 2021 was $77 per square foot, well below the $119 average for traditional homes. 

When Moraima and Roland Duran researched what type of home to build on their three-acre lot north of Austin, Texas, the couple was pleasantly surprised by the rand go choices offered by a new generation of manufactured homes. The couple was able to customize a 1,200 square-foot model to include fireplaces, a room for their dogs, and both front and back porches.

Challenges still remain, despite the cost advantages, manufactured homes remain an overlooked and unloved corner of the housing market. "one of the challenges we continue to have is the stigma around homes" Gooch says. "When people hear manufactured homes, they think of a mobile home. They think of a trailer. They're not thinking of the type of homes we're building today. We need to overcome that impression that people have."