Arizona faces housing crisis amid modular home challenges

In a recent government meeting, a local manufactured home retailer and contractor highlighted significant challenges facing the modular home industry in Arizona, particularly in Prescott Valley. The speaker, who has been operating in the Northern Arizona area for four years, emphasized the growing demand for attainable housing but expressed frustration with the lengthy permitting process for modular homes.

According to the contractor, obtaining state approval for a modular home can take between 8 to 10 months, followed by an additional 4 to 6 months for local municipality reviews. This results in an overall approval timeline of 12 to 14 months, which poses a significant barrier to potential homeowners. The contractor noted that the modular home industry is struggling nationally, with 95% of manufactured home factories not producing modular housing due to the increased costs associated with changing their assembly processes. This shift can lead to a price increase of 30% to 35% for modular homes, making them less accessible to consumers.

The contractor also pointed out a misconception surrounding modular homes, suggesting that municipalities have used the term to imply higher quality. He argued that there is little difference between HUD homes and modular homes when built side by side, challenging the perception that modular homes are inherently superior.

Additionally, the contractor mentioned the limited availability of suitable land for manufactured housing in Prescott Valley, noting only 10 to 15 vacant lots zoned for manufactured housing, with only two deemed buildable. This scarcity further complicates efforts to provide affordable housing options in the area. The discussions underscore the urgent need for reform in the permitting process and greater support for the manufactured housing sector to meet the growing demand for affordable living solutions.