Posts Tagged ‘6 million’

CNBC says 5 to 6 Million Renting Should Own – Affordability = Credit Access, Rates & Price

August 27th, 2014 Comments off

credit-comstock-getty-cnbc-posted-daily-business-news-Tim Rood with the Collingwood Group was part of a CNBC discussion that pointed to factors that manufactured home professionals relate to: the many – and often competing – dynamics that cause someone to buy a home or stay in a rental. Elements such as price and interest rates, CNBC’s Diana Olick  tells MHProNews,  along with knowledge of options, down payments and access to credit all impact prospective home buyers.

Olick says, “There has long been a saying in the real estate market that potential homebuyers don’t buy according to the home price or the mortgage rate. Instead, “they buy the monthly payment.” The monthly payment is, of course, a combination of rate and price, but the weight of each can change dramatically.”

Olick described factors in the last boom and bust: “For example, home prices were able to soar uncontrollably during the last housing boom only because risky mortgage products at the time made monthly payments minuscule and down payments often nonexistent.”

MH professionals know that well intended, ‘corrective’ regulatory hurdles imposed by the Consumer Financial Protection Bureau (CFPB) and/or states have in many cases harmed sales that would have taken place otherwise.  

For example, when a community operator or private money investor is willing to lend at a rate that still yields an affordable payment, but fails to fit the peghole regulators established, would-be sales are lost. This in turn keeps factories from building homes that would otherwise have been ordered by MH retailers, developers and communities to fill demand.

If Rood is correct, 5 to 6 million potential home sales represent a huge economic stimulus that would create millions of jobs. As demand on rentals would ease, monthly rates could be mitigated and housing affordability for millions more would improve.

Manufactured housing professionals can point to facts found in the recent GAO study which cites the lower monthly payment MH enjoys, combine it with stories of affordable quality living, to tap into more sales, to sway more opinion leaders and public officials.

“It never ceases to amaze me how hung up mortgage borrowers can be on rate,” said Matthew Graham of Mortgage News Daily. “In fact, a lot of times we have to remind them that the .125 percent difference in rate only amounts to X dollars and they’re surprised.” ##

(Image credit: Comstock/Getty/CNBC)

(Editor’s Note: A chart by FannieMae, published in this article here, underscores the relationship of price, rate and affordability for manufactured housing.)


Volunteers Replace Homes Destroyed by Fire

September 24th, 2013 Comments off

The all-volunteer Yarnell Hill Recovery Group was formed specifically to assist the 11  uninsured homeowners whose homes were destroyed in the Yarnell Hill Fire to rebuild in Yavapai County, Arizona. Of the eleven residences, four were manufactured homes, and they will be replaced with manufactured homes; the stick-built homes will also be replaced with similar if not identical homes. Additionally, there were 25 underinsured dwellings, and six rental units, one of which was partially insured. Materials and labor are being donated, MHProNews has learned, and to date $1.6 million has been received towards the estimated $6 million project. The Recovery Group was formed from representatives of five service organizations in nearby Prescott. Mennonite Disaster Services, Habitat for Humanity as well as church groups and individuals are providing the labor. Once the homes are completed, the residents will receive free household goods, according to Started by lightning, 19 firefighters from Prescott, Arizona lost their lives on June 30, 2013 when the fire overran them.

(Photo credit:

RV Community and Marina purchased by Equity LifeStyle Properties

September 19th, 2013 Comments off

Equity LifeStyle Properties, Inc. (NYSE:ELS) has acquired Fiesta Key RV Resort, a 324-site resort and marina in the Florida Keys. Located in the Florida Keys on the Gulf of Mexico, ELS paid $24.6 million, according to, funded with cash. As MHProNews knows, ELS is the largest owner of manufactured home and recreational vehicle communities with 377 properties in 32 states and British Columbia, Canada, comprised of 139,288 sites. ELS, a publicly-traded real estate investment trust (REIT) stock, closed up +0.46 percent at 35.52 in today’s trading.

(Photo credit: Equity LifeStyle Properties, Inc.–Lake Haven, Clearwater, Fla.)

Manufactured Housing Project Set for Australia

August 9th, 2013 Comments off

A one-time theme park in Queensland, Australia will be demolished and replaced with a 115-site manufactured housing community (MHC). Nostalgia Town at Pacific Paradise has been acquired for $1.6 million by Peter Puljich, director of Living Gems, developer of MHCs in Australia. The affordable living community will include a social building, pool and bowling green. MHProNews has learned from that other benefits include proximity to the beaches and the Sunshine Coast Airport.

(Photo credit:–manufactured housing community)

Modular Home Development Nearing Completion

July 24th, 2013 Comments off

Updating a story MHProNews published Jan. 27, 2013 concerning new modular town homes in Jersey City, NJ, several of the homes were on display July 23 for a walk through. The $7.6 million development of the 22 three-bedroom homes was delayed by a clean-up of chromium-contaminated land in a crime-plagued neighborhood dotted with foreclosed homes. Funded by a collaboration of private and public sources, Jackson Green will be a mix of affordable and market-rate homes priced from $118,000 to $205,000. All 22 modular homes will be completed by Dec. 2013, according to

(Image credit: GRO Architects–Jackson Green, Jersey City, NJ)

Plenty of Hardship in the Land of Plenty

July 6th, 2013 Comments off

Adding to a story we posted July 4, 2013 from Harvard University’s annual Joint Center for Housing Studies, the report reveals 42.3 million families (37 percent of the nation’s total) pay more than 30 percent of their income for housing, including 20.6 million who pay more than 50 percent of their income for housing. Between 2007 and 2011, 2.4 million homes changed from owner-occupied to renter-occupied, well above the 900,000 rental unit starts during these four years. 258,000 new rentals came onto the market in 2012, the highest number since 2004, as MHProNews has learned from thewestsidegazette. Meanwhile, the report states racial disparity in homeownership continues: White homeownership stands at 73 percent, but only 44 percent of African-Americans and 46 percent of Hispanics are homeowners. In addition, in 2011 despite historic low interest rates, African-Americans were denied mortgage loans 37 percent of the time, while the rate for white borrowers was 14 percent.

(Image credit: firstbanktrust)

Affordable Rental Units becoming More Scarce

June 27th, 2013 Comments off

The competition for affordable rental housing resulting from the recession, itself partly a product of the roughly 4.4 million people who lost their homes to foreclosure, has led to a shortage of homes for the extremely low-income sector. Defined as those earning less than 30 percent of the median income in their communities, their numbers increased by 2.1 million in the years from 2007-2011 to 12.1 million. Meanwhile, the number of rental units affordable to them dropped in that same period from 6.9 million to 6.8 million, according to a report by Harvard University’s Joint Center for Housing studies. As tells MHProNews, tighter government budgets are reducing the building of subsidized housing just as more people are falling into poverty. Additionally, the number of households spending over half of their income on housing hit 20.6 million in 2011, an increase of 14.6 percent since 2007, and 49 percent more than in the previous decade.

(Photo credit: zimbio)

Rent Control Set to Expire

June 3rd, 2013 Comments off

According to, rent controls for the 46 low or moderate-income residents of Tricia Meadows manufactured housing community in Mount Laurel, NJ will expire at the end of the year and become market rate like the other homes in the 400 site community. Built in 1984 by developer Roger Davis and named for his daughter Patricia, site rents will double for those who live in the affordable housing units under a judgment reached with the New Jersey court system 30 years ago. Kevin D. Walsh, of advocacy organization Fair Share Housing Center, says the township could tap into its $6 million Affordable Housing Trust funds, but as MHProNews has learned, Mount Laurel Mayor Linda Bobo says those funds have already been allocated.

(Photo credit: Triangle MHC)

Clayton Hires Reality Stars for TV Spots

May 22nd, 2013 Comments off

KnoxNews informs MHProNews Miss Kay and Phil Robertson, stars of the A&E reality TV show “Duck Dynasty” have signed an agreement, along with Phil’s brother, Si, to do a series of commercials promoting Clayton Homes. “What do I know about Clayton Homes?” Phil Robertson asked. “I know they’re built right here in America.” Adds Kay, “And they know the difference between a house and a home.” The 30-second spot aired in seven markets and Kevin Clayton, CEO of Clayton Homes, says the response “was off the charts.” The family-oriented TV show follows Phil Robertson—who built a multi-million dollar sporting goods business from making a duck call in 1973—and his family in their conflicts with other interesting backwoods characters without foul language or shocking situations. “Duck Dynasty” premiered in 2012 and drew the most viewers, 9.6 million, at its season finale in April, breaking ratings records for the network. Each episode ends with a prayer around the family dining table. The deal includes the commercial, a contest connected to the commercial in which winners get to visit the Robertsons in Louisiana, and an appearance by the trio at the Tunica Manufactured Housing Show. The demographics of the viewers match those of the employees and customers of Clayton Homes. Says Clayton, “Our customers are hardworking Americans and many live from paycheck to paycheck, but we know what they have accomplished and how hard they work, and we know how important faith and family is to them.” ##.

Homeownership Falls, Renter-Occupied Homes Rise

May 1st, 2013 Comments off

The number of Americans who own their homes fell to 65 percent in Q1, 2013, down from 65.4 percent the first quarter of 2012, and the lowest level since the third quarter of 1995. While it peaked at 69.2 percent in June 2004 because of easy credit, Paul Diggle of Capital Economics in London expects the rate to fall throughout 2013 as investors continue to take advantage of low interest rates, which pushes up prices and puts more rentals on the market. As BloombergBusinessweek tells MHProNews, the National Association of Realtors (NAR) reports the number of homes on the market fell 16.8 percent from a year earlier. While the Census Bureau says owner-occupied houses fell from 74.6 million Q1 2012 to 74.5 million this past quarter, renter-occupied homes increased to 40.1 million from 39.5 million a year ago. Overall, occupied residences rose one half million to 114.6 million Q1 2013 over Q1 2012.

(Image credit: rentdirect)