Latin America Manufactured Homes Market- Growth, Trends, COVID- 19 Impact and Forecasts (2023-2028)

The size of Latin America Manufactured Homes Market is USD 3.4 billion in the current year and is anticipated to register a CAGR of over 6% during the forecast period.

Key Highlights

• The outbreak of COVID-19 has severely impacted the manufacturing, and construction industries, which resulted in lower product sales in the year 2020. Latin American manufactured homes market players struggled to gain profits by selling their products worldwide.
• Further, the shutdown of various plants and factories has affected the global supply chains, negatively impacted manufacturing, and delivery schedules, and declined sales for specific periods. However, at the beginning of 2021 market normalized the sale volume with an increase in construction and manufacturing activities.
• The rising demand for energy efficiency, safe, affordable, quality, appreciation in value, and warranty of overall construction is expected to augment the demand for the manufactured homes market in the post-pandemic era.
• One of the best parts of shopping for manufactured homes is the ability to customize the design. Some brands allow shoppers to customize their floor plans, which lets customers tailor the manufactured home to their needs. Some manufacturers may offer features like coffered ceilings, fireplaces, granite countertops, coffee bars, and fixtures which increase the number for manufactured homes demand.
• The growing price of raw materials and commodities, which results in the high construction cost of buildings is influencing the demand for the manufactured home market across Latin America. Moreover, the manufactured homes are affordable, safe, durable, and environmentally conscious with a host of design options that allow for individuality on a smaller, more budget-friendly scale.
• However, low perceived resale value and low awareness may hamper the development of the manufactured homes market.

Latin America Manufactured Homes Market Trends

Low Construction Cost Propels the Demand for Manufactured Homes

The average building construction cost per square meter in Brazil surpassed 20,000 Brazilian reals (USD 3851.49) in 2021, which is twice as high as in 2010. Modern manufactured homes are up to 50% less expensive per square foot than traditional site-built homes while yet providing exceptional quality and performance. These savings allow more and more Latin Americans to own their own home, even in the face of an ever-widening housing affordability gap. Hence, the growing preference for manufactured homes as compared to traditional homes owing to their low construction cost per square foot and the increase in the need for affordable housing has boosted the demand for the manufactured housing market during the forecast period.

Moreover, enhanced energy efficiency in manufactured homes, achieved with upgraded levels of insulation and more efficient heating and cooling systems, provides another source of savings for homeowners, especially in this era of rising energy costs. Smart buyers also are turning to Energy Star-labelled manufactured homes for substantial savings in many aspects of owning and operating a home.

Moreover, loan options are available for purchasing manufactured homes. For instance, Rocket Mortgage, the nation's largest mortgage lender and a part of Rocket Companies, in November 2022 introduced a conventional loan option for Americans who are interested in purchasing or refinancing a manufactured home.

Moreover, manufactured homes can be financed as personal property. Even when the home and land are financed together, the home can be secured as personal property and the land as real property. Owing to the above factors, the demand for manufactured homes is expected to grow significantly during the forecast period.

Rapid Urbanization Boosts the Demand for Manufactured Homes

Manufactured homes are already a major part of the solution to the nation’s lack of affordable housing. In many parts of Latin America, these homes are the least expensive kind of housing available without a government subsidy. In 2021, 81.37 percent of the total population of Latin America and the Caribbean lived in urban areas and cities.

Urbanization attracts people to cities and towns, leading to a high population increase. With the increase in the number of people living in urban centers, there is a continued scarcity of homes. As a part of the Great Housing Mission (GMVV) program, Venezuela President Nicolas Maduro supplied 4 million social houses in April 2022.

Like many other countries, Colombia is also experiencing a massive housing shortage right now. Currently, 1.2 million families have no place to call home. And with only 240,000 new housing units available each year, the housing shortage will be an ongoing issue in Colombia for years to come.

So, Bolivar Construction company intends to introduce modular construction to multi-family building developers and property owners in Colombia. It is anticipated that modular building would gain traction as people learn about its lower construction and maintenance costs and higher return on investment.

Latin America Manufactured Homes Market Competitor Analysis

The report covers major players operating in Latin America manufactured homes to market. The market is highly competitive and fragmented in nature, with none of the players occupying the major share. To remain competitive in the market the major players in the market are constantly working to enhance their product offerings to meet the changing needs of the manufactured homes market. Some of the key players in the Latin American manufactured homes market include Home Nation, Clayton Homes, Columbia Manufactured Homes, Brasmerc Group companies, CC's Modular & Manufactured Homes, etc.,

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support