The Paletz Law Blog

While Manufactured Housing Continues to Be a Solution for the Nation’s Housing Woes, Cities Like Warren, MI are Blind to the Advantages

January 22nd, 2026 | By: Paletz Law Press

No matter how you feel about a reported housing availability crisis in the United States, too few are recognizing the benefits of manufactured housing. While the industry is quietly offering a realistic solution that could help millions achieve homeownership, some local governments continue to stand in the way. 

The Benefits are Clear 

Recent research from The Pew Charitable Trusts and Harvard’s Joint Center for Housing Studies reveals significant cost savings associated with manufactured housing. For instance, a new manufactured home installed on a foundation costs between 35% and 73% less than a comparable site-built home. For prospective buyers, this translates to savings between $50,000 and over $100,000 and potentially more than $300 per month over the life of a 30-year mortgage.

These aren’t the mobile homes of decades past. Today’s manufactured homes are factory-built residences that resemble and function like traditional single-family homes, featuring modern aesthetics, enhanced energy efficiency, and high-quality construction. They’re built in controlled factory environments, allowing for faster construction times and consistent quality control that reduces costs without sacrificing housing standards.

The Negative Perceptions Haven’t Changed 

Despite their potential, manufactured homes still face significant barriers rooted in outdated perceptions and some discriminatory “not in my backyard” (NIMBY) zoning laws. Several municipalities across the country treat manufactured housing differently from site-built homes, creating unnecessary zoning, financial and licensing obstacles through restrictive codes, complicated titling requirements, and loan challenges.

The City of Warren Takes NIMBY to a New Level

According to the Macomb Daily, a lawsuit filed in Macomb County Circuit Court by the Michigan Manufactured Housing Association (MMHA) against the City of Warren highlights how local government obstruction can harm those who choose and use manufactured housing. The MMHA alleges that Warren’s building department, building director  Kirk Rehn and building inspector John Impellizzeri have been deliberately blocking or delaying permits for improvements at area mobile home parks. The MMHA also claims the city has imposed arbitrary requirements that exceed state laws, as well as conducting unlawful inspections. 

According to the MMHA, one particularly troubling incident involved a resident who returned home to find her residence “red-tagged” and condemned without warning, forcing her to vacate the property immediately. MMHA President John Lindley called his organization’s decision to sue the city “an extraordinary step,” but added the “red tagged” resident is not an isolated incident, stating the City of Warren has exhibited “a pattern of hostility” toward manufactured housing and its residents.

The MMHA lawsuit seeks to compel Warren to issue permits for replacing aging homes with new, compliant units and to cease imposing extra-statutory requirements. The goal of the suit is also to force Warren to follow proper procedures before red-tagging homes. If successful, the suit would affect multiple Warren manufactured housing communities. There are now 1,200 licensed home parks across Michigan, serving hundreds of thousands of residents.

Changing the National Image 

Some states are beginning to recognize the potential of manufactured housing. In 2024 alone, Maryland, Maine, New Hampshire, and Rhode Island enacted legislation preventing zoning discrimination against manufactured homes. Washington State recently passed bipartisan legislation allowing manufactured home owners in resident-owned communities to title their homes as real estate, opening access to traditional mortgages.

As housing costs continue climbing beyond the reach of middle- and lower-income families, manufactured housing represents a crucial tool for expanding affordable homeownership. However, realizing this potential requires dismantling regulatory barriers and discriminatory practices that prevent these homes from serving the millions of Americans who need them.

The Warren lawsuit may turn out to be a lengthy and costly battle, but it’s one worth fighting for the industry. When local governments use their power to obstruct rather than facilitate housing solutions, in some cases, legal action becomes the only path to protecting residents’ rights and expanding housing opportunities for everyone.