2005 was a very good year for California's manufactured housing industry. At 7,987 homes, production out paced 2004 by 5.0%. Shipments, including shipments into California from neighboring states were up 4.0% at 10,783 homes.*

In response to current financing trends, some retailers and developers have shifted their focus to factory built homes (modulars), which are produced by CMHI manufacturer members. Consequently, manufactured homes financed as real estate at 31% fell short of our projected 38% of total sales.

Over the past decade, architectural compatibility with existing homes in virtually any neighborhood has been the catalyst for increased development of manufactured housing on urban, suburban and rural lots. Developed in subdivisions, planned unit developments or as individual in-fill projects, and in land-lease communities, manufactured housing is being used to deliver high value homes from entry level through luxury move-up designs.

As California's land costs have increased, lot sizes have decreased. The resultant increased density has created a demand for floor plans with more square footage on smaller footprints. In response, several manufacturers have developed two story models that once again advance manufactured housing's hallmark of architectural compatibility.

In addition to being sold as real property homes, two story manufactured homes are being used to upgrade the housing stock in several land-lease communities in California. Redevelopment agencies are finding these homes to be ideal for improving housing options on inner-city small lots.

Cost savings and the speed to project completion are hallmarks of two-story homes built in a factory and installed on permanent foundations at the site.