Zoning leaves factory-built homes legal in only a sliver of America

Realtor.com finds just 17% of the US is zoned to explicitly allow manufactured housing communities, even as federal and state moves try to widen access.

A Realtor.com report finds that only 17% of the United States is zoned to explicitly allow manufactured housing communities. That is the share of the nation where such communities are clearly permitted, by the outlet's own count. The report, dated October 26, 2026, arrives as policy attention to factory-built homes is rising.

The prior week, President Donald Trump signed an executive order creating a task force to speed manufactured housing development. Earlier this year, Congress's 21st Century Road to Housing Act codified changes affecting the sector, including dropping the requirement that manufactured homes be built on a permanent chassis, which saves about $10,000 in construction costs. States are acting too: Virginia Gov. Abigail Spanberger legalized manufactured housing statewide wherever traditionally built single-family homes are allowed, and New York Gov. Kathy Hochul announced $20 million of state investment to develop factory housing in several parts of the state.

Realtor.com also ranked the top 100 housing markets using starter-home share, median land price per acre, and new-construction premium. Hartford, CT came first, followed by Denver, Allentown PA, Albuquerque NM and Colorado Springs CO. Three of the top 10 are in New York. Most metros with the greatest need for starter homes are smaller New England markets, mainly because of high new-construction premiums.

The abundance point is that housing supply depends on where building is legal, not just on how cheaply it can be done. Realtor.com senior economist Joel Berner says municipalities keep the final say over where homes can be built. He sees the order's most helpful part as pairing HUD, which controls the product, with FHFA, which controls much of the financing. He also notes that the 'trailer home' stigma remains a hurdle to public acceptance. The ranking is Realtor.com's own composite method and covers only 100 markets, so treat it as a guide, not a verdict.

Source: Google News