WIXLIB

MARKET INSIGHTSCorporate Communicationsand MarketingManufactured Housing 2022:An Untapped Affordable Housing SolutionPrepared by Market Insights,Corporate Communications & MarketingPrepared by Market Insights Freddie Mac

Executive Summary and RecommendationsMARKET INSIGHTSCorporate Communicationsand MarketingGeneral familiarity withmanufactured housing isrelatively high, howeverthere are clear knowledgegapsRoughly half of those surveyed are atleast somewhat familiar withmanufactured housing. However,confusion exists in the details ofmanufactured homes such as theiravailability in different settings, theprocess of purchasing, and thepossibility of renting / short-term living.RecommendationSentiment towardmanufactured housing issurprisingly positivePurchase likelihood ofmanufactured housing is tied tolevel of familiarityPositive sentiment outweighsnegative and most agreemanufactured housing is a greataffordable housing option,especially for first-time homebuyers.Younger generations, Black consumers,lower income households and urbanresidents have lower familiarity withmanufactured homes.They are seen as being ecofriendly, customizable and a goodinvestment.Overall, those who are familiar show agreater likelihood to see them as anaffordable housing option and are likely topurchase them in the future.Investigate ways to improve awareness and tap into the opportunitymanufactured homes can bring to today’s housing market, particularly amongkey segments of affordable and underserved cohorts.22022 Manufactured Housing SurveyPrepared by Market Insights Freddie Mac

5 in10 are familiar with manufactured housing, however confusionexists when it comes to process-oriented detailsFamiliarity with Manufactured HomesVery familiarSomewhat familiarHave heard of, but not very familiarNever heard of17%53%have neverheard of, orare not veryfamiliar withmanufacturedhousingCorporate Communicationsand MarketingFALSE statements about Manufactured HousingThe purchasing process of manufacturedhomes is the same as other types of homes.Manufactured homes are only available inrural communities and are not a good optionif you want to live in the city or suburbs.20%MARKET INSIGHTSManufactured homes are personal propertiesand cannot be attached to a permanentfoundation.51%21%47%15%41%Manufactured homes can only be purchasedand are not available for rent.38%Manufactured homes are only for temporaryhousing and not for long-term living.37%23%25%30%33%Strongly/Somewhat Agree13%Don't Know3Q: How familiar are you with manufactured homes? N 1,954 those not currently living in manufactured housingQ: The list below contains some statements about manufactured homes. Please indicate how much you agree or disagree with each statement N 2,092 Total Sample2022 Manufactured Housing SurveyPrepared by Market Insights Freddie Mac

Positive sentiment overall with manufactured homes seen asnew, affordable, and “easy” housing options3%Somewhat negative20%Cookie CutterMobileHomeSmall(% Top 2 Box)Extremely positive60%CheapUnsafeSomewhat positive17%77% Top 2 Box positive sentimentEasyCool 50K HHI82%Black Consumers81%High School or less80%Urban Residents79%Rural Residents79%Millennials78%Less Positive View of Manufactured HomesAffordable(% Top 2 Box)ModernCustomNewCorporate Communicationsand MarketingPositive View of Manufactured HomesOverall Perception of Manufactured HomesExtremely negativeMARKET INSIGHTSEfficientCheapAdvanced Degree*62% 100K HHI67%Baby Boomers73%Caucasian Consumers74%Suburban Residents74%Q: What is your perception of manufactured homes? N 1,711 those who have at least heard of manufactured housingQ: What are the top 3 words or phrases that come to mind when you think of manufactured housing? N 1,711 those who have at least heard of manufactured housing* Masters degree or Professional / Doctorate degree2022 Manufactured Housing Survey4Prepared by Market Insights Freddie Mac

The benefits of manufactured homes are tangible, with positivesentiment largely outweighing the negativeMARKET INSIGHTSCorporate Communicationsand MarketingHow much you agree or disagree with each statement?Strongly/Somewhat AgreeNegativestatementsPositivestatementsAllow for a wide range of customizationand are versatile for different family’s needs14%72%Affordable without compromising on quality66%Eco-friendly and energy efficient66%A good investment64%Cheaply built and not as structurally soundas other types of homesDon't know76%Great option for first-time homebuyersDepreciate in value and are not worth theinvestmentStrongly/Somewhat 13%5N 2,092 Consumers age 18 2022 Manufactured Housing SurveyPrepared by Market Insights Freddie Mac

Target Cohorts and RecommendationsMARKET INSIGHTSCorporate Communicationsand MarketingYounger ConsumersBlack ConsumersLower HHI ( 50K)Urban ResidentsN 1,520N 663N 1,088N 869Positive sentiment*: 76% for GenZ and 78% for MillennialsPositive sentiment: 81%Positive sentiment: 82%Positive sentiment: 79% Despite their high sentimenttowards manufactured housing,this group is the least familiarwith this type of housing. They are also the most likelyincome cohort to state “Idon’t know” for variousattitudinal statements and whenasked which sources offinancing to consider whenpurchasing a manufacturedhome Urbanites are significantly morelikely than those living in thesuburbs or in rural areas to saythey are likely to considerpurchasing a manufacturedhome in the future. They are also significantly morelikely than other communitytypes as well as Total Sample tofeel manufactured housing iscustomizable and versatile.Provide information on availablefinancing options formanufactured housing toAmericans with lowerhousehold incomes.Identify urban areas that areconducive to manufacturedhousing and provide additionaleducation on the benefits ofmanufactured housing. More than 2/3 of Millennialssay they are likely toconsider buying amanufactured home in thefutureGen Z are more likely to saythat low supply ofmanufactured housing andlack of knowledge andavailable resources arechallenges to purchasing.Educate this cohort to driveawareness of the ability to rentmanufactured housing. Black consumers are morelikely (65%) than Total Sampleor other ethnicities to say theyare likely to consider buyinga manufactured home in thefutureThey view manufacturedhousing as a goodinvestment, think that it isaffordable withoutcompromising on qualityand like the customization itoffersOffer general education aboutmanufactured housing andresources to support thepurchase process to this cohort.6* Positive sentiment is the % of respondents that answered Top 2 Box (Somewhat positive & extremely positive) to the question “What is your perception of manufactured homes?”2022 Manufactured Housing SurveyPrepared by Market Insights Freddie Mac

Millennials are open to purchasing, but are challenged byperceived lack of financing options availableFamiliarity, Sentiment& Likelihood to Buy51%47%*52%*48%73%Gen Z are significantly more likely to consider lowsupply and lack of knowledge obstacles topurchasing manufactured housing; while 3 in 10Millennials say that lack of financing options isa barrier to purchasing a manufactured home.68%*62% 61%62%20% of Millennials saytheir perception ofmanufactured housingis extremely positive40%35%29% of Gen Z say havenever heard ofmanufactured housingFamilarityTotalPerceptionGen ZMillennialsLikelihood to PurchaseGen XCorporate Communicationsand MarketingAttitudes & ChallengesGen Z & Millennials(% Top 2 Box)77% 76% 78% 77%MARKET INSIGHTSMillennials are significantly more likely to feelmanufactured homes are customizable andprovide a wide range of options.Younger consumers mistakenly assume thatmanufactured housing is only available in ruralareas, are only available for purchase and cannot be attached to a permanent foundation.BoomersQ: How familiar are you with manufactured homes? N 1,954 those not currently living in manufactured housingQ: What is your perception of manufactured homes? N 1,711 those who have at least heard of manufactured housingQ: What do you think are the biggest challenges of buying a manufactured home? Select up to 3. N 2,092 Total SampleQ: How likely are you to consider buying a manufactured home in the future? N 2,092 Total Sample2022 Manufactured Housing Survey* Indicates statistical significance at 90%confidence level vs. totalPrepared by Market Insights7 Freddie Mac

Black consumers are interested in purchasing, but feel lack ofknowledge and available resources are potential barriersFamiliarity, Sentiment& Likelihood to Buy77%*77%Corporate Communicationsand MarketingAttitudes & ChallengesBlack Consumers(% Top 2 Box)81%MARKET INSIGHTS78%* strongly/somewhat agree74%62%*66%61% 61%manufactured homes allow for a wide rangeof customization and are versatile fordifferent family’s needs.50%47% 46%69%* strongly/somewhat agree37%manufactured homes are affordable withoutcompromising on quality.25%* say that lack of knowledge and lack.available resources is one of the biggestchallenges of buying a manufactured home.FamilarityPerceptionTotalHispanic ConsumersLikelihood to PurchaseBlack ConsumersWhite ConsumersQ: How familiar are you with manufactured homes? N 1,954 those not currently living in manufactured housingQ: What is your perception of manufactured homes? N 1,711 those who have at least heard of manufactured housingQ: What do you think are the biggest challenges of buying a manufactured home? Select up to 3. N 2,092 Total SampleQ: How likely are you to consider buying a manufactured home in the future? N 2,092 Total Sample2022 Manufactured Housing Survey* Indicates statistical significance at 90%confidence level vs. totalPrepared by Market Insights8 Freddie Mac

Manufactured homes can be a solution for lower household incomeconsumersFamiliarity, Sentiment& Likelihood to Buy52%* somewhat/strongly disagree that82%*manufactured homes are only for temporaryhousing and not for long-term living73%67%62% 63% 63% 60%*52% 54%47%38%* somewhat/strongly disagree that44%FamilarityTotalCorporate Communicationsand MarketingAttitudes & ChallengesHHI 50K(% Top 2 Box)77%MARKET INSIGHTSmanufactured homes are cheaply built andnot as structurally sound as other types ofhomesPerception 50K 50- 100KLikelihood to Purchase 100KQ: How familiar are you with manufactured homes? N 1,954 those not currently living in manufactured housingQ: What is your perception of manufactured homes? N 1,711 those who have at least heard of manufactured housingQ: What do you think are the biggest challenges of buying a manufactured home? Select up to 3. N 2,092 Total SampleQ: How likely are you to consider buying a manufactured home in the future? N 2,092 Total Sample2022 Manufactured Housing Survey2. in 10 low-income households have neverheard of manufactured housing and aresignificantly more likely to answer ‘don’tknow’ to various statements aboutmanufactured housing.* Indicates statistical significance at 90%confidence level vs. totalPrepared by Market Insights9 Freddie Mac