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Manufactured Housing facts from the National Association of Home Builders (NAHB) Report

September 3rd, 2014 No comments

The following information comes to us from the National Association of Home Builders (NAHB), forwarded from various state executive directors and MHI.

We estimate that in 2014 the average price of new manufactured homes (including the cost of lot development) is $53,230 for single homes and $100,259 for double homes. Increasing the price of new single manufactured homes by $1,000 will disqualify 347,901 households from being able to afford these homes. Similarly, if the price of new double manufactured home rises by $1,000, 315,385 households will be priced out of the market. The effects are NOT cumulative, since they are based on the same income distribution of all US households. These are NOT effects on sales, rather only on ability to qualify for a mortgage.

Our new manufactured home prices are based on the average sale prices for single and double new manufactured homes reported by The Manufactured Housing Institute (MHI). They are further adjusted for inflation and additional costs of lot development. The inflation factor is the increase in new manufactured home prices from 2012 to 2013 as reported by the MHI. The lot development cost adjustment is based on the NAHB survey of construction costs.

NATALIA SINIAVSKAIA, Ph.D.
Housing Policy Economist
Survey and Housing Policy Research

National Association of Home Builders
1201 15th Street, NW
Washington, DC 20005”

While some voices have made hay out of this report to show that even the home builders agree that price hikes of every $1000 leave hundreds of thousands of potential MH or other home buyers behind, let's flip this for a few moments.

Let's focus on this: “We estimate that in 2014 the average price of new manufactured homes (including the cost of lot development) $53,230 for single homes and $100,259 for double homes.

Using the $53,230 loan amount, a 4% FHA loan for a land/home purchase, at 30 years term the principle and interest (taxes, escrows, other costs not figured into this calculation) would be approximately $269.71 (before you object, yes, some lenders do make and FHA allows for FHA Title II loans on single section homes, the multi-sectional restriction is an overlay that some lenders impose).

Using the same idea as above applied to the multi-sectional with home-site numbers ($100,259) from NAHB's study yields a $478.64 monthly payment (disclaimer again, principle, interest only). This is clearly 'affordable' housing!

Both the GAO in their recent report, and Fannie Mae in a previous study, indicate similar payments that reflect the fact that manufactured housing is the most affordable permanent (as opposed to RVs or other seasonal) homes on the market today.

fanniemae-2011-chart1-affordable-manufactured-housing-posted-daily-business-news-mhpronews-362x430

FYI, credit studies suggest that some 58% of the U.S. has a credit score that is at or above a 692 FICO, as the chart above from Experian and Money-zine reports.

credit-score-chart-courtesy-of-Money-zine-cutting-edge-blog-mhpronews-

When you look at the facts here and consider the satisfaction and affordability suggested by the recently published Foremost Insurance study, or the CNBC discussion on a potential 5 to 6 million Americans who could be buying a home, and a picture of the industry's strong upside potential comes into sharp focus.

But, Tony, I'm not seeing those 692 credit scores at my location!” some say.

Sorry, but that my friends and MH Industry colleagues, is because the wrong kind of sales and marketing approach is being used! “Damaged credit OK” advertising brings you exactly that, and if you don't use those sorts of ads, so many in our industry have for so many decades that this is embedded into the psyche of millions of credit challenged customers. Remember these lyrics… Trailers, for sale or rent, rooms to let for 50c…

When you learn how to attract and sell the site built home buyer, you will get more of that as time goes on.

When you and more in the MH Industry mature to the point that we are selling good homes that are appealing AND affordable, you'll see more sales to cash and good credit customers, and more sales of new MH and MODs. That's a fact and I'm sticking with it! ##

latonykovach-com-brushed-cutting-edge-marketing-sales-blog-mhpronews-com75x75-By L. A. “Tony” Kovach

300,000 Shipments in 2013!

July 12th, 2013 No comments

When the report came in that shipments in RVs topped 144,000 by May of 2013, it made me sit up just a bit more. I reached out for more insights to Tim DeWitt, Executive Director of Michigan Manufactured Housing as well as the RV & Campground Association and Self Storage Association of Michigan. He pointed me to an article on Woodall’s and a video interview, which we’ve posted below. The bottom line is that due in large measure to the GoRVing coalition, shipments for the RV industry – in THIS economy – are expected to hit 300,000. Before the GoRVing image campaign, the shipment levels where about half that 15 years ago, during a much more robust economy. Manufactured housing pros! Is this sinking in?

The RV industry is the envy of boating, fishing – and ought to be – of our industry. Actually, most pros in fact privately agree that we have long needed the same sort of thing. After all, who pays for the campaign? Consumers, when they buy an RV that has a campaign fee embedded into its cost.

We are getting some hands going up in the air, offering to support our online MHLivingNews.com image building effort. The forward thinkers “get it.” As so often happens, Leaders will tend to benefit first.

The National Association of Realtors (NAR) tells us that 94% of housing shoppers are spending some, most or all of their initial research online. So our online image building platform is a common sense first step!

The roots of this GoRVing campaign run deep. As Tim DeWitt told me, the RV business is attracting discretionary income buyers, people with good credit scores and/or the cash in the bank needed to write the check to pay for units that may run $300,000 or more.

As executives at a major manufactured home community operator told us, this is needed and long overdue.

We have a great product, it only makes sense to keep the U.S.A.’s best kept new home secret, not a secret any longer!

Traffic SPIKING at MHLivingNews

Growth month-over month is around the 400% increase range on MHLivingNews. Some of the top read articles for the month include: 

manufactured-home-garage-credit-aia-insurance-posted-manufactured-home-living-news-.jpg

and

But what’s exciting to see is that there are a lot of page views per visit, which means that visitors like what they see. They aren’t just ‘bouncing’ off the site.

Cost Effective!

Our industry doesn’t have millions of dollars in an account, waiting to invest in a full blown mimic of the GoRVing campaign. So in our case with Manufactured Housing, let’s start with what we have on ManufacturedHomeLivingNews.

Contact us for ways to make this effort pay for you and your operation, regardless of size or locale. We are already experiencing retailers and communities who are using the site to help them attract and sell more homes. The rapid traffic rise on our site is clearly from consumers and pros alike.

mhlivingnews-ipad-ver2.0b- (1).png

If RV’s can ship 300,000 units this year, during a year when manufactured housing may hit 60,000 shipments, that tells me that we ought to be doing ever so much more. RVs have five times our shipment level! Yet RVs are usually discretionary, housing is a necessity.

What is our potential, with the right marketing effort for manufactured housing?

The National Association of Home Builders (NAHB) projects single family housing starts of about 600,000 for the U.S.. That’s ten to one for us, and we have the better price points, are statistically safer and more energy efficient?

Is this a wake up call? It ought to be!

We need not abandon the starter home market, but we can grow and go after the ‘residential’ home buyer PLUS the ‘entry level’ consumer too.

We will return to this theme in the days ahead. Your comments and inquiries are welcome. See what other industry pros have said at this link here. ##

300,000 shipments in 2013? Come on!

http://www.woodallscm.com/2013/07/video-rvia-exec-touts-go-rving-campaign/

PS: Check our many Exclusive and Red Hot Featured Articles for June and see the

other new stories at MHLivingNews.com too.

l-a--tony-kovachL. A. “Tony” Kovach

MHLivingNews.com=Re-Discovering and Spotlighting the MHLifeStyle

MHProNews.comMHMSM.com = Industry News, Tips and Views Pros can Use

Services:B2BandB2CAds, Proven MH Marketing & Sales Systems, Websites other Industry Solutions.

Office –815-270-0500

latonyk@gmail.com or tony@mhmsm.com

www.MHC-MD.com

http://www.linkedin.com/in/latonykovach= connect with me on Linkedin.

http://pinterest.com/latonyk/manufactured-home-lifestyle/

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Whether you think you can or whether you think you can’t, you’re right. – Henry Ford

PiP

September 30th, 2012 No comments

PiP for millions means 'Picture in Picture.' For association minded pros, when we see PiP we should think Protect Inform Promote.

More than one manufactured housing association in recent years have been under budgetary assault. Many had have felt the pinch of falling shipments, just as businesses have, so in some cases associations went into pure protection mode.

Thankfully, the industry's uptick this year has allowed those which had to do just Protection to return to Informing and Promoting, rekindling the complete PIP process anew.

We could mention initiatives in Florida and Texas to enhance their web presence and benefit their members in information and promotion alike.

An example that we happen to be involved with is the Midwest Manufactured Housing Federation's Louisville Show website. This will be 'formally unveiled' this week, when the MMHF's Louisville Show Chairman Ron Thomas' Featured Article on MHProNews.com. See the Featured Article module on the MHProNews.com home page to see his article.

When that page goes live, we will update this blog post with the link to that new show site.

Protection takes place at the local, state and federal level. Business buildling Information, Inspiration and Promotion are going to be showcased at the Louisville Show and on the Louisville Show's website.

The link below is to a site that the National Association of Home Builders commissioned for their annual event. NAHB has big bucks compare to manufactured housing. They no doubt dropped a pretty penny on this website of theirs:

http://www.buildersshow.com

But below this paragraph, we will send you the link to the new Louisville Show site that they graciously allowed us to build as part of the Inform and Promote portions of their five state federation's efforts.

Louisville Manufactured Housing Show Website

My hunch is that we did this for a considerably more modest budget that the NAHB did for their annual show's website. What do you think? Which would you be more proud of overall?

When we make our Industry's events look good, than we look better in the process too.

There will be more features and pages added to the Louisville Show website that ought to be complete before October is done. But you can already see much of the meat and potatoes that showcase what makes going to a great, historic show like Louisville a win for all involved.

Hats off to the MMHF and Dennis Hill at Show Ways for taking the leap of faith to have this site built. We at appreciated the opportunity to serve on this high visibility project.

When you are ready for the review, update or building of your organization's or company's website, please give us a call or fill out the contact info at this link here. ##

l-a--tony-kovachL. A. "Tony" Kovach
MHLivingNews.com=Re-Discovering and Spotlighting the MHLifeStyle
MHProNews.comMHMSM.com = Industry News, Tips and Views Pros can Use

Services:B2BandB2CAds, Proven MH Marketing & Sales Systems, Websites other Industry Solutions.

Office –815-270-0500
latonyk@gmail.com or tony@mhmsm.com
LATonyKovach.com
http://www.linkedin.com/in/latonykovach= connect with me on Linkedin.

http://pinterest.com/latonyk/manufactured-home-lifestyle/

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Whether you think you can or whether you think you can't, you're right. – Henry Ford