It is both an exciting and challenging time for the manufactured housing industry. The industry has made significant advances in design and technology and opened new markets. The passage of the Manufactured Housing Improvement Act of 2000 has improved the status of manufactured homes as a vitally important part of the nation's housing stock.

State-of-the-art technology and design ensure that homes are built efficiently and affordably. In addition to single-section and multisection models, two-story and duplex homes are becoming more common. Not only is manufactured housing becoming increasingly appealing to homebuyers, but builder-developers are taking notice as well. Customized packages, exterior designs, and on-site additions such as porches and garages, make the homes compatible with almost any neighborhood.

The passage of the Manufactured Housing Improvement Act in December 2000 was a victory for consumers. The act ensures that the Federal Manufactured Home Construction and Safety Standards (HUD Code) are updated on a timely basis and that each state institutes an installation program. State programs are required to implement installation standards, the training and licensing of home installers and inspection of home installations. It also addresses updating the HUD-Code on a timely basis, clarifying the scope of federal preemption, providing HUD staff with additional resources, and resolving any customer complaints during the first year after a home is installed.

In continuing the momentum, several new voluntary programs have been implemented in 2001, including the Lenders Best Practices (LBP) program and Energy Star program of the Environmental Protection Agency (EPA). MHI's LBP program establishes professional standards and practices for financial lenders involved in the manufactured housing industry. The Manufactured Housing Research Alliance (MHRA) has developed guidelines for manufacturers to meet Energy Star requirements, giving manufactured homes a competitive feature that many homebuyers desire. The Energy Star certification, is given to those homes that are at least 30 percent more energy efficient than a comparable home built to the Council of American Building Officials (CABO) 1995 Model Energy Code (MEC).

The market also continues to evolve. In 2000, multisection homes represented 70.1 percent of industry shipments, marking the fifth year of multisection dominance. But still, manufactured homes are the best value for the dollar. In 2000, the average price of a manufactured home was $46,500, compared to the average cost of a site-built home at $162,300, excluding land price.