Proposed Rule Change Could Lower Manufactured Home Costs and Expand Access
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A new proposal within the bipartisan Road to Housing Act could bring meaningful change to the manufactured housing industry—starting with the possibility of lowering home costs by as much as 9%. The key update would give manufacturers the option to remove the steel chassis after a home is installed, eliminating an expensive requirement that many homeowners never actually use.
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What Is the Chassis—and Why Does It Matter?
Manufactured homes are built on permanent steel frames known as chassis. These frames were originally required under the 1976 HUD code so homes could be moved if necessary. But today, only about 5% to 7% of manufactured homes are ever relocated after installation.
Because the chassis is rarely needed beyond delivery, it adds unnecessary cost—about $10,000, or roughly 9% of the average price of a single‑section home. Removing the requirement could also give manufacturers far more flexibility when designing homes for modern communities.
Why This Change Could Improve Affordability
The manufactured housing industry is one of the country’s most important sources of affordable homeownership, yet production has not fully recovered since the Great Recession. Shipments remain about one‑third of what they were in the 1990s.
Allowing chassis removal could:
- Lower material and installation costs
- Allow chassis to be reused across multiple homes
- Reduce waste in the construction process
- Make homes easier to place on urban or smaller lots
- Enable options like basements or multilevel layouts
These improvements could help manufactured homes serve a wider range of communities—from rural areas to densely populated neighborhoods where land is scarce and building flexibility matters.
Unlocking New Design Possibilities
Without a permanent steel frame, manufacturers could create more diverse home configurations. For example:
- Multistory units that stack more easily
- Homes situated closer to the ground for better accessibility
- Basements without the extra excavation needed to accommodate a chassis
- Factory-built homes placed on vacant urban infill lots
These possibilities could open the door to more innovative uses of factory-built housing nationwide.
More Policy Changes Still Needed
While a federal chassis-removal option is a major step forward, additional updates are needed to help manufactured housing reach its full potential.
Key areas for improvement include:
- Zoning reforms: Many communities still rely on outdated regulations that unnecessarily restrict manufactured homes.
- Modernized titling laws: Treating manufactured homes as real property rather than personal property is essential for mortgage access.
- Better financing tools: Expanding eligibility for traditional mortgages would improve affordability for many buyers.
When combined with the chassis update, these policy shifts could help manufactured housing make a greater impact on the national housing shortage.
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The Bottom Line
The proposed chassis-removal rule could make manufactured homes more affordable, more flexible, and more widely accepted. By reducing costs and allowing modern design options, it represents a promising step toward expanding access to quality factory-built housing across the country.