ELKHART, Ind. () What was once a heavily stigmatized industry is now booming as manufactured homes offer more affordable options in a housing market that continues to price out first-time buyers.

At the Elevation Park Model Company in Elkhart, business is thriving. The manufacturer, founded just three years ago by two friends, has grown from 13 employees to nearly 60 and currently faces a four-month backorder.

“They can pick straight from the catalog and say, ‘This is what I’m looking for,’ or they can come to us and say, ‘I like this bedroom but this kitchen and let’s morph it together,'” said Brent Kattau, co-owner of the company.

The appeal is clear when comparing costs. New mobile homes average around $124,000, while new single-family homes typically cost more than $400,000.

Manufactured housing is the country’s largest source of unsubsidized low-income housing, providing shelter to 21 million Americans. From 2014 to 2024, shipments of new manufactured homes increased by more than 60%, according to census data.

The homes are built with quality materials comparable to traditional housing despite falling under the RV classification. Size regulations vary by country, with Canadian units permitted to be larger than their U.S. counterparts, which must remain under 400 square feet.

Buyers are also getting creative with these dwellings. Rather than placing them in traditional trailer parks, some homeowners use them as mother-in-law suites in large backyards or as home offices amid the growing work-from-home trend. Others convert them into short-term rental properties.

In the first two months of this year alone, more than 17,000 manufactured homes were shipped across the country, representing an 8% increase from the previous year.

The company showcases various customizable features, including built-out decks, various paneling options, and fireplaces, allowing buyers to personalize their space at a fraction of the cost of traditional home construction.