The Decline of Salesmen in the Mobile Home Industry Amid Growing Demand for Inventory

Last Updated on September 25, 2024 by Ian Golightly

Over the past decade, the mobile home industry has experienced significant shifts. Despite the rising demand for manufactured homes due to affordability and housing shortages, there has been a noticeable decline in the number of traditional salesmen in the industry. Several factors contribute to this trend, from digital disruption to changing consumer behaviors, and this decline presents both challenges and opportunities for businesses to adapt. This article delves into the root causes of the diminishing presence of salesmen and offers actionable solutions to help the industry stay competitive in an evolving market.

The State of the Mobile Home Market: Rising Demand and Declining Sales Force

The U.S. manufactured housing market continues to grow steadily. In 2023, it’s estimated over 89,000 new manufactured homes were sold across the country, marking a significant portion of all new housing starts. In 2024, sales remained consistent, with over 40,000 homes sold by mid-year​.

Year	Total Homes Sold
2023	~94,000
2024 (est.)	80,000+

Graph: Manufactured housing market trends.

However, despite this growth in demand, the number of salespeople actively working within the industry has declined. This mismatch between high demand for inventory and a shrinking sales force poses a significant issue for businesses relying on traditional sales models.

The Decline of Salesmen: Why It’s Happening

 

The decreasing presence of salesmen in the mobile home industry can be traced to several key factors:

Shifting Consumer Preferences:

Rise of Digital Buyers: Today’s consumers are more tech-savvy and prefer to conduct their own research online before making purchases. This self-directed buying process reduces the need for traditional sales interactions. According to a study, 63% of home buyers now use online platforms for research, reducing the demand for in-person sales​.

Impact on the Sales Force: As a result, many dealerships are moving away from aggressive sales tactics, transitioning toward customer service roles that assist buyers only when necessary. This has led to a natural decline in the number of salespeople being hired.

Digital Disruption:

Online Marketplaces: The rise of digital platforms like Zillow and other real estate aggregators has allowed buyers to browse mobile home listings, compare prices, and even schedule viewings without needing to interact with sales personnel

Virtual Tours and 3D Walkthroughs: Tools such as virtual tours and 3D walkthroughs further eliminate the need for physical salesmen, offering buyers the chance to explore homes digitally from the comfort of their own homes. Many mobile home dealerships now offer this feature on their websites, catering to the growing preference for online research.

 

Cost Pressures on Dealerships:

Operational Costs: Mobile home dealerships face increasing operational costs, from property maintenance to marketing expenses. To cut costs, many businesses reduce their sales staff, opting for a leaner model supported by digital tools.

Margins: Tightening profit margins mean that many dealerships can no longer afford to keep large sales teams. Instead, they focus on hiring fewer, more specialized personnel to handle complex sales and customer service roles.

 

Industry Consolidation:

Larger Companies Dominating: The mobile home industry has seen consolidation, with larger companies acquiring smaller dealerships. These larger entities typically streamline operations by reducing sales teams and implementing more automated processes, further contributing to the decline in sales positions.

Labor Market Challenges:

Difficulty in Recruiting New Talent: The broader labor market is facing challenges in recruiting and retaining sales talent. This trend extends to the mobile home industry, where fewer young professionals are interested in pursuing careers in sales. Existing salespeople are retiring or leaving the industry, and they’re not being replaced at the same rate.

The Correlation Between Declining Salesmen and High Inventory Demand

While the sales force is shrinking, the demand for mobile homes is growing. Manufactured homes are becoming an increasingly attractive option for homebuyers due to affordability concerns in traditional real estate markets. The average cost of a manufactured home in 2024 was around $125,000, far below the national median for site-built homes​.

Despite this high demand, the industry’s ability to effectively meet the needs of consumers is hampered by the reduction of salespeople. This creates a gap in service, leaving dealerships scrambling to adapt their business models.

Metric	Value (2024)
Median Cost of a Manufactured Home	$125,000
Cost of Single-Section Homes	$89,700
Cost of Double-Section Homes	$153,300

Graph: Declining Sales Force vs. Rising Home Sales (2015-2024). Manufactured housing market trends.

Graph illustrating the inverse relationship between the number of salesmen and manufactured home sales from 2015 to 2024.

Solutions to Address the Salesman Shortage

To maintain competitiveness and meet growing demand, businesses in the mobile home industry must adapt. Several solutions can help mitigate the challenges posed by the decline of traditional salesmen.

Embrace Digital Sales Tools
Dealerships should continue investing in online sales platforms, virtual tours, and digital contract management systems. These tools can streamline the buying process, reducing the need for extensive sales teams while maintaining high levels of customer engagement.

Strengthen Customer Service Teams
Instead of focusing on sales, dealerships should build strong customer service teams trained to assist potential buyers with questions and guidance during their research. This approach aligns with modern consumer behavior, which favors support over aggressive sales tactics.

Leverage Data Analytics
By adopting data-driven sales strategies, dealerships can better understand customer behavior and preferences. This allows them to provide personalized recommendations and insights, enhancing the customer experience without needing a large sales force.

Focus on Talent Development
The industry needs to attract new talent by offering more competitive compensation, development programs, and career growth opportunities for young professionals. Targeting younger generations and showcasing the potential of careers in the mobile home sector can help address the workforce shortage.

Adopt a Hybrid Sales Model
Dealerships should explore hybrid sales models that combine online tools with in-person experiences. For example, offering virtual consultations with sales staff or using AI-driven chatbots to handle initial customer inquiries can keep human salespeople focused on higher-value interactions.

Collaborate with Manufactured Home Communities
Partnering with manufactured home communities could provide a new channel for sales. By working closely with these communities, dealerships can ensure that inventory is placed in high-demand areas and marketed directly to community residents. Communities also need to be in tuned with the manufactured housing market trends to also help facilitate the growing demand for manufactured homes.

Conclusion

The decline of traditional salesmen in the mobile home industry is a multifaceted issue driven by technological advances, changing consumer preferences, and economic pressures. However, the high demand for affordable manufactured homes presents an opportunity for the industry to innovate. By embracing digital solutions, strengthening customer service, and attracting new talent, the industry can adapt to these challenges and continue to thrive.

Sources

1. “Average Sales Price of New Manufactured Homes: Single Homes in the United States.” Federal Reserve Bank of St. Louis. https://fred.stlouisfed.org/series/SPSNSAUS
2. “Average Sales Price of New Manufactured Homes: Total Homes in the United States.” Federal Reserve Bank of St. Louis. https://fred.stlouisfed.org/series/SPTNSAUS
3. “Manufactured Housing Market Report 2024.” Manufactured Housing Institute. https://www.manufacturedhousing.org
4. “Digital Transformation in Home Buying.” National Association of Realtors. https://www.nar.realtor