Cavco Industries Builds on Affordable Housing Demand, Navigates Supply Chain

Phoenix, AZ – October 26, 2025 – Cavco Industries (Nasdaq: CVCO), a leading designer and manufacturer of prefabricated homes, reported strong third-quarter results, driven by robust demand for affordable housing solutions. While navigating ongoing supply chain disruptions and inflationary pressures, the company continues to demonstrate resilience and innovation in a rapidly evolving market.

Cavco’s Q3 revenue reached $49.6 million, a significant increase from the $4.9 million recorded in the same period last year. The company attributes this growth to a confluence of factors, including a persistent housing shortage, rising construction costs, and a growing consumer preference for cost-effective housing options.

“We’re seeing unprecedented demand for affordable housing across the country,” stated a source familiar with Cavco’s strategy. “Traditional stick-built homes are becoming increasingly inaccessible, pushing more and more buyers towards manufactured and modular homes. Cavco is well-positioned to capitalize on this trend.”

Addressing the Affordability Crisis

The U.S. faces a severe housing affordability crisis. According to data from the National Association of Realtors, the median home price remains stubbornly high, making homeownership a distant dream for many Americans. Manufactured homes, typically priced significantly lower than traditional homes, offer a viable alternative for first-time homebuyers, families on a budget, and those seeking a simpler lifestyle.

“Manufactured homes aren’t what they used to be,” explained a market analyst specializing in the prefab housing sector. “Today’s models are built to the same standards as traditional homes, offering comparable quality, comfort, and style. They’re also incredibly customizable, allowing buyers to create a home that meets their specific needs and preferences.”

Cavco offers a diverse range of models, from single-section homes ideal for downsizing to multi-section homes suitable for families. The company also emphasizes energy efficiency and sustainable building practices, appealing to environmentally conscious buyers.

Navigating Supply Chain Hurdles

Despite the strong demand, Cavco faces significant challenges related to the global supply chain. Disruptions in the availability of materials, such as lumber, steel, and PVC, have led to increased costs and production delays.

“The supply chain has been a nightmare,” admitted a source within Cavco’s operations. “We’ve had to be incredibly nimble and proactive to mitigate the impact on our production schedule. This has included diversifying suppliers, optimizing inventory management, and implementing cost-saving measures.”

Cavco has also invested in technology and automation to improve efficiency and reduce reliance on manual labor. This includes utilizing advanced design software, robotic assembly lines, and data analytics to optimize production processes.

Competitive Landscape and Innovation

The manufactured housing market is becoming increasingly competitive, with established players like Clayton Homes and Champion Home Builders vying for market share. However, Cavco differentiates itself through its commitment to innovation, quality, and customer service.

The company is actively exploring new technologies and materials to enhance the performance and sustainability of its homes. This includes researching alternative building materials, such as recycled plastics and bamboo, and developing smart home features that enhance comfort and convenience.

“Cavco isn’t just building homes; they’re building communities,” said a housing industry observer. “They’re focused on creating sustainable, affordable, and high-quality living spaces that meet the evolving needs of their customers.”

Future Outlook

The demand for affordable housing is expected to remain strong in the coming years, driven by demographic trends, economic conditions, and government policies. Cavco is well-positioned to capitalize on this growth, with a solid financial foundation, a proven track record of innovation, and a commitment to customer satisfaction.

However, the company faces ongoing challenges related to supply chain disruptions, inflation, and rising interest rates. To navigate these challenges, Cavco will need to continue investing in technology, optimizing its operations, and maintaining a laser focus on customer needs.

“The future of homebuilding is prefabricated,” concluded an industry analyst. “Cavco is at the forefront of this revolution, and they’re poised to become a leading provider of affordable, sustainable, and high-quality homes for generations to come.”

About Cavco Industries

Cavco Industries, Inc., is a leading designer and manufacturer of prefabricated homes, modular homes, and park model RVs. The company operates multiple manufacturing facilities across the United States and serves a diverse range of customers, including retail home buyers, home builders, and manufactured home communities. For more information, visit www.cavcoindustries.com.