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Investors, Professionals, Planners, Advocates – Examining Affordable Manufactured Home Industry Market Potential

March 13th, 2019 Comments off

 

InvestorsProfessionalsPlannersAdvocatesExaminingAffordableManufacturedHomeIndsutryMarketPotentialDailyBusinessNewsMHProNews

There are already some 22 million in the U.S. living in
pre-or-post HUD Code homes, but what is the potential for the market?

 

Several reports independent of the manufactured housing industry in 2018 established the value of modern manufactured homes.  Several stated that manufactured homes were an important part of the solution for the affordable housing crisis.

A summary on several of those third-party studies that reflected positively on manufactured homes is linked here and further below, following the byline and notices.

So, there are already groups that see the value of manufactured homes, but there are also those outside of MHVille that think of our form of factory-built housing as homes for the poor, working, or lower middle class.  Some in our industry believe something similar. But is that a fair assessment?

The short answer to that subtopic is ‘yes and no.’ How so?

On the one hand, researchers reveal that the average income of HUD Code manufactured home residents is significantly lower than that of conventional housing. That’s a large market that is worth serving.

But it would ignore the reality that thousands who make far more than the average – and chose manufactured home living. Manufactured homes are desirable regardless of income.

  • MHLivingNews has interviewed millionaires who live in manufactured homes. There are also reports there of billionaires who own manufactured homes – even a single sectional.
  • MHLivingNews has also interviewed upper middle class owners of manufactured homes. There are likewise numbers of prior owners of conventional housing that own and praise their manufactured homes.
  • There is also Kid Rock video with the performer, his Rolls Royce, private jet and his manufactured home.

 

KidRockRollsRoyceManufacturedHomePoDunkOffiicalVideoDailyBusinessNewsMHProNews

Kid Rock – Po-Dunk [Official Video] Published on Jul 13, 2017 – 23,196,137 views, as of 3.13.2019 at 1:35 PM ET.

Which bring us to the broader question. Given the fact that numbers of upper-middle-class, plus some millionaires and billionaires have a manufactured home, what is the manufactured housing market potential? Let’s look.

First, to understand the answer to the question, first time readers and those new to manufactured housing must realize that for decades, there have been upscale manufactured homes and entry level HUD Code homes. It is somewhat similar to entry level cars, boats, RVs, other big ticket item industries.

With those thoughts in mind, here’s a snapshot of who could be a potential manufactured home customer.

  • Renters,
  • First Time Home Buyers.
  • Upsizers – including those who may own a conventionally built or other house, but want a larger floorplan home,
  • Downsizers – including those who own a conventional housing unit,
  • Retirees, and
  • Second or vacation home seekers.

 

Rephrased, almost anyone who is properly exposed to the realities vs the myths might want a manufactured home. Renters alone represent some 100,000,000 in the U.S., per CityLabs. iPropertyManagement says that about 33 percent of all households are in rental housing.  That one demographic group – renters – is enough to keep manufactured home producers busy growing in a sustainable way for years to come.  And the 2018 research by the National Association of Realtors (NAR) reflects the fact that millions of those make enough money to qualify for a manufactured home.

 

 

One more Factoid – What’s the Potential in Your Market?

Pointing to Census Bureau information, Melisa Data says that every year in the U.S. “an overall percentage of 14.19 percent annually” are moving from one housing unit to another. That means about 1 in 7 on average in your market are going to be moving every year.  Imagine that every 7th driver, every 7th person at a store, house of worship or wherever you encounter Americans are going to be moving this year.

Viewed as a marketer or sales professional should see this, that’s a huge and ongoing pool of potential prospects. Which begs the following questions.

  • So why are so relatively few prospects coming into your manufactured home community or street retail sales center?
  • Why are significant numbers of those coming into a sales center or community credit challenged than the pool seeking conventional housing?

Each of those 2 bullets are marketing, public relations, and educational issues.  But the fact that some prospects are well qualified, means that others like them can be attracted too. The fact that some millionaires and billionaires own a manufactured home, mean that more could be attracted too.  A look at the data with clear eyes tells the savvy that properly understood, the potential for manufactured housing is astronomical.

Which also means that the industry is underperforming, and it also means that those willing to apply the Sam Zell dictum could soar.  “When others are going left, look right.”  That ‘right’ is manufactured homes, communities, and other segments of the business.  Many underperforming means others could and should be outperforming and wildly prospering.

 

2018DataShareofHousingMarketManufacturedHousingInfographicDailyBusinessNewsMHProNews612

 

 

Bottom Line Takeaways for Industry Professionals? 

Whatever the agenda or reasoning process of others who seek to explain manufactured housing’s relatively low performance, the outline above reveals something brighter and more opportunity laden.

It’s an obvious advantage to be able to sell a product or service that costs less than competing alternatives. At present, manufactured homes are the lowest cost permanent housing choice made in the U.S. or Canada.  Here in the U.S., manufactured homes have the advantage of enhanced preemption. There are also multiple story options for manufactured homes that are rarely consider outside of this publication.

 

InfographicMobileManufacturedHomeManufacturedHousingIndustryFactsDataResearchMobileManufacturedHomeLivingNews

 

Those looking to explore this potential for their own business or location should check out the article linked from the text-image box below.

 

Rocking Manufactured Housing Shows, Events, and Marketing Promotions

 

The trump card the industry must use are the power of enforcing existing federal laws. Enhanced preemption is just one of the existing laws that could catapult the industry ahead, at the local level.

 

 

There are numerous reasons for a motivated operation with sufficient access to capital and other resources to be able to grow significantly.

 

 

The facts outlined herein provide reasons for the industry’s investors and professionals to grow at a far more robust clip.  Some of the reasons that the industry isn’t growing faster are found in the linked reports, below. “We Provide, You Decide” © ## (News, analysis, commentary.)

 

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To see a sample of our emailed news update, click here. To sign up for the factory-built home industry’s #1 headline news, click here or the graphic above.

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SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

 

 

Related Reports:

You can click on the image/text boxes to learn more about that topic.

Positive, Uplifting Third-Party Reports Favor Modern Manufactured Housing, So What’s Going Wrong?

DTS Manufactured Home Lending Committee Member Says MHI in “Unholy Alliance” to Divert Needed GSE Support Away from Manufactured Housing

Drilling Down on State Manufactured Housing Shipment Data, Shocking Revelations, Warning Signs

MHI’s Growth Agenda? Rick Robinson, JD, SVP Manufactured Housing Institute, Preemption Evidence, Writ of Mandamus, and Addressing HUD Code Manufactured Home Shipment Woes

Warren Buffet’s Quotable Quotes on Business, Institutions, Behavior, and News Reporting

 

Conquest Capitalism – Thoughts of Chairman Warren Buffett – Billionaires Campaign to Control Trillion Dollar Affordable Housing Market

Warren Buffett’s Moat, Understanding Manufactured Housing Requires Grasping Strategic Economic Moats

“Tug of War” – Manufactured Home Community Legislation – “Vicious Cycle Goes On,” Impacting Industry, Home Owners, and Potential Buyers

 

HUD Code Manufactured Home Production Decline Persists – Time For Action Not Excuses

“The Illusion of Motion Versus Real-World Challenges”

 

 

 

 

 

 

 

 

 

 

Op-Ed Takes City to Task, Advocates for MH as Solution

February 22nd, 2017 Comments off
OpEdTakesCitytoTaskAdvocatesforMHasSolutioncreditCrownVilla-postedtothedailybusinessnewsmhpronewsmhlivingnews

A home in the Crown Villa community in Bend, Oregon. Credit: Crown Villa.

Former Bend, Oregon mayor and property firm president Allan Bruckner, recently penned an op-ed in The Bulletin, which makes the case for manufactured housing as a solution to the city’s affordable housing crisis.

One of the obvious and most talked about problems in Bend is our need for affordable housing. Yet so far there has been no effective approach to solving this need. There has been some success for apartments, which require a subsidy to the developer, but very little progress for single-family dwellings,” wrote Bruckner.

Why not consider a subdivision based on factory-built housing (previously called mobile homes [sic]) that doesn’t require a subsidy. Economical factory housing is advertised for around $50 per square foot, whereas low-cost, site-built housing in Bend costs around $100 per square foot for a 900- to 1,200-square-foot house. (Costs for land, water, sewer and road are additional.)

OpEdTakesCitytoTaskAdvocatesforMHasSolutioncreditAllanBuckner-postedtothedailybusinessnewsmhpronewsmhlivingnews

Allan Bruckner. Credit: Source Weekly.

Bruckner continued, speaking very strongly about the negative perceptions of manufactured housing, and how it needs to change.

While they have a historic negative image as creating slum like conditions, or depreciating like junk, that need not be the case,” wrote Bruckner.

For example, consider the successful local examples such as the Romaine Village subdivision or the Crown Villa mobile home park. Each has provided safe, code-compliant, low-cost housing for over 40 years! Each remains very attractive after these 40 years. Why not develop such a project today? And such a project could address a large number of housing units, not like a few ‘ADUs’ (accessory dwelling units) here and there.”

Bruckner went on to discuss the Juniper Ridge industrial park, and its failure over the last 10 years, as an option for the city to redesignate in parts for extensive affordable housing.

He also called for specific restrictions to make sure that it happens.

Of course, just rezoning land for housing will not guarantee its use for low-cost housing, so specific restrictions are necessary,” wrote Bruckner.

To make this truly low-cost housing, the city should make the land available free. At an average price of $100,000 per lot in Bend, combined with factory-built housing at about half the price of site-built houses, this would be a huge savings. With perhaps 10 units per acre, and developing 20 or 30 acres, this approach would have a major impact on availability of affordable housing.

OpEdTakesCitytoTaskAdvocatesforMHasSolutioncreditBendBulletin-postedtothedailybusinessnewsmhpronewsmhlivingnews

The Juniper Ridge Industrial Park. Credit: Bend Bulletin.

In closing, Bruckner pointed to the need for the housing, and for action.

The need is obviously great. If we really want to provide affordable housing, why not free land? After all, the city got the land for $1 from the county, which got it free from Bureau of Land Management. Understandably, there would have to be controls so the resident gets the benefit of free land, and doesn’t get a windfall upon resale, but those are solvable legal issues. (Perhaps the city places a lien on the property, maybe releasable gradually over time),” wrote Bruckner.

It could provide a huge increase in affordable housing with limited out-of-pocket costs to taxpayers. If this problem is to be addressed, it is time for bold action.” ##

 

(Image credits are as shown above.)

 

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

Manufactured Housing Community to Close, may be Rebuilt

July 9th, 2013 Comments off

Debate continues in Williamstown, Mass. about the feasibility of retaining a 224 homesite manufactured housing community that sits in a 100-year flood plain for affordable housing. The Board of Selectmen of Williamstown, Mass. has voted to ask the Conservation Commission to remove the site from conservation restrictions, and then inquire of developers the feasibility of building affordable housing on the site. Advocates of the Affordable Housing Committee are pushing for more information on the project, with the hopes of it being developed, while most of the town residents who spoke at the meeting do not want the proposal to go forward. A discussion with the Massachusetts Department of Environmental Protection, which has jurisdiction over development in a flood plain, has been set for July 15. Meanwhile, remaining residents of the Spruces Mobile Home Park are in the middle, not knowing when Williamstown may take possession of the community from current owner Morgan Management. By state law, as iberkshires informs MHProNews, residents must be given two years’ notice of when the community will close.

(Photo credit: thinkstock–manufactured housing community)

State may buy Foreclosures for Affordable Housing

February 19th, 2013 Comments off

Although it has won praise from bankers and housing advocates, New Jersey State Senator Ray Lesniak’s bill that would allow the state to buy foreclosed homes from institutional investors to use as affordable housing passed the legislature, but was vetoed by Gov. Chris Christie in last year’s session. Another bill ito speed up the foreclosure process, according to what nijbz tells MHProNews, was passed and signed by the Gov., but the foreclosure transformation was vetoed. This year, his Residential Foreclosure Transformation Act is tied to a package of popular incentive programs that would focus on job creation. A similar version of the bill has been introduced in the New Jersey Assembly.

(Image credit: condometropolis)

MHC Sold, New Owner Plans Redevelopment

August 22nd, 2012 Comments off

centredailytimes says residents of Penn State Mobile Home Park in State College, Pennsylvania have been told by the new owner they have until next July to move their homes or they will be demolished. At a meeting Monday, Aug. 21 Centre County and human service housing assistance organizations informed residents of available resources to help them move. One resident said she was stunned by the decision but was appreciative of the human service advocates at the meeting. According to the Centre County Recorder of Deeds Office, the property was bought by the 1725 North Atherton Street Associates for $6.225 million. The property’s fair market value is shown as $2.16 million. A partner of Nicholas Enterprises and also the North Atherton Street group, Heidi Nicholas said she plans to redevelop the property, but specifics were not divulged. A mortgage agreement between Nicholas and the former owner for $5.5 million was also filed on the property. MHProNews has learned centredailytimes was asked to not attend the meeting so the new owners, who purchased the property July 30, could focus on the residents.

(Photo credit: centredailytimes/Abby Drey–Penn State Mobile Home Park)

Non-profit States Affordable Housing Financings Rise

August 2nd, 2012 Comments off

The National Council of State Housing Agencies (NCHSA), a national non-profit that advocates before Congress on behalf of Housing Finance Agencies (HFAs) for affordable housing, reports the number of single-family homes financed by HFAs increased 41% in 2010 over 2009. mortgageorb says according to the 2010 NCHSA Factbook, HFAs financed 59,127 affordable homes in 2010, up from 41,857 in 2009. “We are very proud of this annual undertaking that provides hard evidence of HFA program results and successes,” says Barbara J. Thompson, executive director of the NCSHA. “The combination of the trends that we are seeing in the 2010 Factbook, along with what we are hearing from the HFA community, is a positive indication that the housing market recovery efforts are moving in the right direction.”

)Image credit: texaslendingtoday)

New Law: 60 Days for MHC Owners

May 10th, 2012 Comments off

In reference to a story MHProNews.com posted, NorthCentralPA reports the Pennsylvania House of Representatives has passed House Bill 1767 which requires MHC owners to give 60 day notice to residents when a community is to be closed and the land used for an alternate purpose. The Pennsylvania Housing Finance Agency must be notified and provisions for relocating residents must be established. Rep. Garth Everett (R-Lycoming) says the bill, which passed 190-7, is a consensus of advocates for the residents and the manufactured housing industry. The bill now goes to the Senate.

Photo credit: DoylestownPatch–PA House of Representatives)