Formerly sneered at as ''mobile homes'' manufactured housing is now one of the nation's fastest growing housing segments thanks to the housing's affordability.

That's because unlike the temporary nature of the old, truly mobile homes of the past, today's manufactured housing provides better quality, year-round housing that's often difficult to distinguish from conventional site-built housing.

Unfortunately, even as the industry grows, manufactured housing remains controversial, according to ''The Future of Manufactured Housing,'' prepared by Harvard University's Joint Center for Housing Studies.

Critics argue that the U.S. Department of Housing and Urban Development codes allows construction of inferior housing that in storms and earthquakes pose health and safety risks to occupants, and the lower quality and design standards of manufactured homes adversely affect adjacent properties, Harvard's report says.

Advocates for manufactured housing say that's not so.

Today's manufactured homes are of better quality and are more spacious than in the past. Recent updates to the HUD code (which preempts state and local codes) is generating health and safety standards that often exceed those in state and local building codes.

High-end units placed in conventional subdivisions are often indistinguishable from their site-built neighbors.

Perhaps most importantly, manufactured housing is more affordable housing. Many households choose manufactured homes because other basic-quality, low-cost housing options are few.

As the new century nears, the manufactured housing industry is poised to cash in on the aging baby boom generation and their offspring who likely will increase demand for manufactured housing.

Manufactured housing historically shelters large shares of both very young and elderly households. In 1974, 42 percent of manufactured unit owners were under age 34 compared to 18 percent of other home owners. In 1993, 25 percent of manufactured home owners were under 34 compared to 14 percent of those who owned other types of homes.

Likewise, manufactured unit owners over age 75 nearly tripled from 1974 to 1993, increasing the share of the manufactured home population for that age category from 6 percent to 12 percent. Over the same period, the share of that age group in other owned housing increased less sharply, from 7.5 percent to 10.5 percent, the Harvard study says.

Those populations benefit most from the low purchase prices, down payments, and monthly cash costs for manufactured housing grant many households access to home ownership opportunities not found in the conventional housing market, the study said.

While the future demand for manufactured housing looks bright, challenges to the industry remain.

"Unregulated installation procedures and a lack of comprehensive product guarantees have provoked customer concern. Manufactured housing providers need to review installation methods, warranty options, as well as financing, insurance, and sales mechanisms to improve consumer confidence and satisfaction with their products,'' wrote authors Kimberly Vermeer and Josephine Louie.

For more information:

Last year, in its February issue, Consumer Reports published findings of its two-year examination of the manufactured housing industry. To receive a copy of Consumers Union's Tips on Mobile Homes, send $2 to cover shipping and handling to Consumer Reports, P.O. Box 11018, Des Moines, Iowa 50336. The information also is on Consumer Reports' Web site, but a subscription is required.

Published: March 26, 1999

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