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Posts Tagged ‘Answer’

Constraints on New Home Construction – Is MH the Answer?

March 14th, 2017 Comments off
ConstraintsonNewHomeConstructionIsMHtheAnswercreditClarkCountyHomeBuilders-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credit: Clark County Home Builders.

New data from Redfin shows that more consumers than ever before are in the market for a home.

While sales are picking up, new home construction is well below levels prior to the recession of 2008.

Could manufactured housing be the solution?

According to National Mortgage News, there are key factors that limit new home construction.

ConstraintsonNewHomeConstructionIsMHtheAnswercreditNationalMortgageNews1-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credit: National Mortgage News.

 

Rising Land Costs are a factor, as many homebuilders who where able to grab empty lots as land prices tanked during the recession. They got a great deal and have built on the land, which is significantly more expensive now that it was just a few years ago.

Severe Labor Shortages are hurting the construction industry badly, with 184,000 construction jobs nationwide left unfilled. As the Daily Business News covered recently, a poll conducted by the National Association of Home Builders (NAHB) revealed that 76 percent of builders indicated cost and availability of labor as their major problem. The poll concludes that the anticipated construction labor shortage could cripple the improving housing market.

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Credit: National Mortgage News.

There are currently 184,000 open construction sector jobs,” said Robert Dietz, chief economist at the NAHB.

The rate of unfilled sector jobs has been on the rise and now stands at rates near cycle highs and at levels comparable to the housing boom period. The rising rate of unfilled jobs has slowed the construction sector’s net job growth.

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Credit: Real EstateSyracuse.

The “Renter’s Nation” continues to heat up, as many of the homes that were left vacant during the financial crisis became single-family rentals, and many flock to them to get the home experience, without the cost and restraints.

Credit: National Mortgage News.

Access to Credit is an issue, as it is still very difficult to obtain a traditional home loan, and without buyers for homes, homebuilders have a hard time justifying more home construction.

 

Manufactured Housing to the Rescue?

With all of the challenges facing new home construction, the manufactured housing industry remains a practical and viable solution to making the American Dream accessible to everyone.

Mega successful business people like Berkshire Hathaway’s Warren Buffett, Jim Clayton, founder of Clayton Homes, and ELS Chairman Sam Zell all understand the immense value proposition that manufactured housing provides, with Zell famously being quoted as saying during this interview, “Everyone calls them trailer parks. Pencil head, it’s not a trailer park.

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Credit: MHLivingNews.

For more on manufactured housing being the solution that’s hiding in plain sight, see MHProNews and MHLivingNews Publisher L.A. “Tony” Kovach’s insight into the opportunity linked here. ##

(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.

Multi-Story Modular – The Answer to Rising Costs?

November 21st, 2016 Comments off
multistorymodulartheanswertorisingcostscreditmatrixhomesinstallwellington-postedtothedailybusinessnewsmhpronewsmhlivingnews

A Matrix Homes installation in Wellington, New Zealand. Credit: Matrix Homes.

For Trentham, New Zealand-based Matrix Homes, they believe the answer is yes.

According to Voxy, Matrix Homes is about to enter the high-rise market offering steel frame modular construction for hotels and apartment buildings. This follows the signing of an agreement to partner with Alto Australia, a company with 30 years experience in large-scale modular multi-story projects.

Matrix expects to announce New Zealand’s first modular construction high rise building in the first quarter of 2017. This project will use the steel frame modular construction system developed by our partners Alto Australia,” said managing director Sean Murrie.

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Sean Murrie. Credit: Stuff NZ.

Not only will this result in considerable savings over the cost of conventional construction but the build time will be significantly reduced taking weeks instead of months – a fraction of the time of an onsite build.

The plan between the two companies will use steel framed load bearing modules, alleviating the need for the building to have an independent structural frame. The modules can be stacked like building blocks to create multi-story buildings of up to 10 levels in New Zealand.

Matrix says that their units will only take two weeks to install for a six-floor building, and that the entire build can be completed in less than 3 months. The company also claims that multi-story modular buildings have lower maintenance costs, and better seismic and acoustic performance than traditional builds.

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The Matrix Homes factory. Credit: Matrix Homes.

Our modular high rise system provides savings of up to 25% over conventional building methods, produces less material waste and a much safer work environment,” said Murrie.

This enables developers to build in the current market and avoid exposure to escalating building costs that industry sources recently claimed saw between 22 and 35 multi-residential projects axed in Auckland over the past 12 months.

But, according to Murrie, costs are not the only issue.

While rising construction costs are not the only reason many construction projects aren’t proceeding, clearly there is a need for greater innovation that will result in a less costly, faster and better performing built environment. Had developers adopted modular construction, we believe many of the cancelled Auckland projects could have been built,” said Murrie.

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Alto Australia plant. Credit: Alto.

Matrix Homes claims that they have produced 60 stand-alone homes. While bureaucracy is a challenge, they plan to continue.

Each and every housing consent with Councils is hard fought – the territorial local authorities are getting in the way of building affordable housing and we would prefer to focus on multi-story modular where our efforts aren’t stymied at every turn,” said Murrie.

The Matrix/Alto Australia modular system provides an innovative solution to the ever increasing cost of building multi-story buildings without compromising quality. It meets or exceeds all wind and earthquake standards, and provides superior fire protection. This makes the system ideal for hotels, apartments, and student accommodation.

Even with the challenges, Murrie remains optimistic.

We believe modular multi-story construction also creates an opportunity to expand our business and workforce to deliver bigger projects that will improve our built environment.

The Daily Business News has covered the modular segment recently, including a similar project by London-based firm Pocket. ##

(Image Credits are as shown above.)

rcwilliams-writer75x75manufacturedhousingindustrymhpronews

RC Williams, for Daily Business News, MHProNews.

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