WASHINGTON, D.C. — The Department of Housing and Urban Development has proposed changes to federal manufactured housing standards that would allow new multi-story designs, a regulatory shift intended to expand housing supply and lower construction costs as the nation continues to face affordability challenges.
The proposed rule would revise the federal definition of a manufactured home under the HUD Code, permitting upper-floor sections of certain manufactured homes to be transported and assembled without a permanent chassis.
The change could provide manufacturers with greater flexibility to develop multi-story housing models, potentially expanding the range of affordable housing options available to consumers and developers.
Housing Secretary Scott Turner framed the proposal as part of the administration’s broader effort to increase housing production.
“America needs more housing, and manufactured housing is part of the solution,” Turner said. “We are removing unnecessary barriers, encouraging innovation, and helping American manufacturers deliver more affordable housing options for American families.”
HUD stated that the proposal would also update related definitions contained in the Model Manufactured Home Installation Standards and the Manufactured Home Installation Program regulations to align with the revised framework.
The agency argues that allowing greater design flexibility could help manufacturers respond to growing demand while reducing production constraints associated with current construction requirements.
Manufactured housing represents a significant segment of the nation’s affordable housing stock. According to HUD, more than 20 million Americans live in manufactured homes, and the industry supports tens of thousands of jobs nationwide.
The proposal arrives as federal, state, and local policymakers continue searching for ways to address housing shortages and affordability pressures that have affected both urban and rural communities.
HUD noted that it is working with state and local governments, housing finance agencies, and community developers to support infrastructure, land-use policies, and programs that facilitate additional manufactured housing development.
The proposed rule is available at https://www.federalregister.gov/documents/2026/06/12/2026-11851/revising-the-definition-of-manufactured-home-to-lower-housing-costs.
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