Amid rising housing costs, factory-built homes are becoming an increasingly popular alternative for American buyers, with platforms like Amazon and Facebook Marketplace now offering such properties. Over 77,000 new units were shipped in the first nine months of 2024—a 16% increase year-over-year, according to U.S. Census Bureau data.

Online Sales Trend
Julie Johnson, 24, and her husband purchased a used 2,200-square-foot manufactured home for $52,000 via Facebook Marketplace. The North Carolina couple documented their experience on TikTok, showcasing the home’s delivery in two sections and subsequent assembly.

Costs and Challenges
While base prices for new units start at $25,000,buyersfaceaddedexpenseslikelandpreparation,utilityinstallations,andcomplianceupgrades\mathrm{.}Johnsonspent$$25,000, buyers face added expenses like land preparation, utility installations, and compliance upgrades. Johnson spent 0,000 on foundational work and septic systems to meet local codes. Marc Norman, a New York University housing expert, noted regulatory hurdles: “Zoning laws vary drastically between towns—some even ban these homes entirely.”

Safety Concerns
A 2023 Urban Institute report warns that factory-built homes are more vulnerable to floods and wildfires, with many parks located in high-risk areas. Recent hurricane damage in Florida communities highlights these risks.

Economic Context
With median existing-home prices hitting $404,500 (National Association of Realtors, September 2024) and high mortgage rates, these homes now account for 6% of U.S. housing stock. Federal Reserve officials have raised concerns about investors buying up leased land, potentially undermining affordability.

This article adapts reporting from CNN’s original piece by Samantha Delouya. Read the full story at CNN Business.