Congress could boost affordable housing by removing chassis requirement for manufactured homes

In recent years, significant movements have been observed in the housing affordability debate across the United States, especially concerning manufactured homes. The issue gained traction around 2017 when Lesli Gooch, from the Manufactured Housing Institute, started intensifying efforts to remove the 'permanent chassis' mandate established in 1974. This mandate has long hindered the attractiveness and production of manufactured homes—a response originally intended to protect conventional homebuilders. The National Commission on Manufactured Housing had recommended eliminating this requirement in 1978, citing safety as a non-issue for homes produced without a chassis. Despite these recommendations, political inertia delayed action until now. The 2023 introduction of a bill by Republican Representative John Rose of Tennessee to amend federal law by removing the five words related to the chassis requirement illustrates a bipartisan acknowledgment of the necessity for legislative change. However, this measure has faced scrutiny as advocates worry about the transition period for state regulations and the implications it could have on their local homebuilding industries. In Utah, where home prices have surged beyond the reach of many residents, state leaders are pushing for zoning reforms to incentivize more affordable housing. Local officials express frustration at state mandates overriding local control, raising concerns that such changes may detract from community needs and the effectiveness of regional planning. In the case of Utah, the median age of homebuyers has risen significantly, reflecting a broader trend where young people feel priced out of traditional homeownership, leading to decreased wealth creation opportunities. The manufactured housing sector produces around 100,000 new homes annually and could substantially increase output if released from the chassis requirement combined with supportive zoning laws. This dilemma highlights the intersection of federal policy and local housing markets, with urgent calls for a re-examination of regulations stifling the supply of affordable homes throughout various regions. The progress made so far—coupled with advocacy from grassroots movements focused on local needs—demonstrates how both strategies could potentially alleviate the pressing housing crisis in America, while keeping in mind the balance between community concerns and state policies.