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Posts Tagged ‘Builderonline’

Doing “End Around” Other Factory-Builders, LivingHomes Sprouts Plant Prefab

September 8th, 2016 Comments off

stevegleenplantprefab-livinghomes-builderonline-posteddailybusinessnews-mhpronewsLivingHomes founder Steve Glenn established his prefab modular building operation in 2006, says BuilderOnline.  Initially using other producers of factory built homes to supply their needs, as housing has recovered, Glenn’s operation was increasingly being squeezed by those producers.

They’re taking more time to get back with bids and engineering, and in some cases they’ve turned us down for projects because they were too busy,” Glenn told Builder. “They [other factory-builders] are really set up to do standard, non-customized, lower cost, non-sustainable homes.”

If that sounds like it was spoken by someone into customized, green building, you’d be correct.

With manufactured and lower cost modular homes being the bread and butter of his previous suppliers, Glenn did an “end around,” by opening his own facility, said Construction Dive.

Known as Plant Prefab, Glenn’s fledgling production center has fewer than 20 employees at its 61,000-square foot factory in Rialto, California.

Glenn, CEO of Plant, expects that number to rise by year’s end, as project load rises.  They also expect to do projects for others seeking factory built product, not just their own clients.

livinghomes-creditconstructiondive-posteddailybusinessnews-mhpronews

Photo credit, Construction Dive.

With some 40 homes under contract, the company appears well poised with enough orders for a market where modular-infill home sales in urban areas makes sense.

The operation prides itself on LEED certified homes. LivingHomes has reported 18 homes certified as LEED Platinum and one LEED Gold. ##

(Image credits as shown)

l-a-tony-kovach-daily-business-news-mhpronews-

L. A. ‘Tony’ Kovach is the publisher of MHProNews.com and MHLivingNews.com.

Submitted by L. A. ‘Tony’ Kovach to the Daily Business News, MHProNews.

Homebuyers Seek Lower Price on Site-built than the Offering

June 7th, 2016 Comments off

home_prices_expectation__builderonline__credit__and_nahb_census_bureauIn a survey conducted by the National Association for Home Builders (NAHB), 59 percent of would-be homebuyers said $249,000 was their limit to spend on a new home, but 65 percent of the homes begun in 2015 were over that limit. According to what builderonline tells MHProNews, 31 percent set their limit at $150,000, while one in six thinks $100,000 is their upper limit for a new home.

NAHB Economist Paul Emrath says the median price of a new single-family home in 2015 was $298,000, while the “expects-to-pay” median came in at $219,000, indicating the mismatch between what survey respondents said and what is being built and sold. Numbers are based on data from the U. S. Census Characteristics of New Housing for 2015.

Even as the high-priced homes market is slowing, builders are finding it difficult to bring in a single-family home for under $249,000, much less the $150,000 that 31 percent of the respondents were hoping for. Any new home below $150,000 in site built is all but impossible.

$150,000 would buy a lovely manufactured home. ##

(Graph credit: builderonline based on U. S. Census data)

Clayton Acquires another Site-built Home Builder

April 29th, 2016 Comments off

goodall_homes__credit__site_builtMHProNews has learned from builderonline that manufactured housing giant Clayton Homes has acquired Goodall Homes of Gallatin, Tenn. as it increases its mark on the site-built home industry, having purchased site home builder Chafin Communities of Georgia last fall.

Goodall has been building single-family homes, townhomes and condominiums since 1990, and the acquisition will add 3,600 lots and 180 homes under construction in a five-county area of middle Tenn. Expecting to close on 440 homes this year, Goodall had revenues just below $140 million last year.

As MHProNews reported Nov. 2, 2015, Clayton paid $50 million for Chafin and agreed to keep all 25 employees. Similarly, Clayton agreed to maintain the workforce of Goodall Homes. Owner and President Bob Goodall, Jr. said, “This acquisition will help our employees, trades, suppliers and our families continue on this path of growth for years to come. We are honored to be on the Clayton team and to contribute to the continued success of Berkshire Hathaway.”

Last year Clayton built 34,000 homes. ##

(Image credit: Goodall Homes)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Housing Affordability Rose in Q4 2015

February 19th, 2016 Comments off

home buyers  viewpoint caThe Housing Opportunity Index (HOI) report released by the National Association of Home Builders (NAHB) and Wells Fargo reveals U. S. housing affordability rose in the final quarter of 2015.

Reflecting both new and existing homes sold during the quarter, 63.3 percent of them were considered affordable to families making the median income in the U. S. This represents an increase from 62.2 percent posted in Q3 and up from 62.8 percent a year ago.

Home affordability rises in the winter as prices fall due to a more subdued real estate market, as bilderonline tells MHProNews..

While median home prices fell to $226,000 in Q4 from Q3’s $231,000, but are down 5.1 percent from $215,000 in the fourth quarter of 2014.

Despite the Federal Reserve having raised interest rates for the first time in nearly a decade, average mortgage intereset rates fell to 4.09 percent from 4.18 percent in the third quarter. Falling oil prices and an uncertain global economy have pushed the rates down.

Two hundred twenty-five metropolitan areas were surveyed in the research. ##

(Image credit:viewpoint.ca)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Labor and Lot Shortage could Hinder Housing Market Recovery

February 9th, 2016 Comments off

nahb_logoThe monthly National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) reveals the cost and availability of labor remains the biggest hurdle for builders, and is expected to continue as a problem throughout this year. During the Great Recession tradespeople left the industry by the thousands because jobs were not available. Many found work as truck drivers.

According to builderonline, NAHB’s staffer Ashok Chaluvadi tells MHProNews,In 2013, 53% of builders rated labor as a significant problem, followed by 61% in 2014 and 71% in 2015. An expected skilled labor shortage can constrain an improving housing market.” 76 percent of builders anticipate the problem will carry over through 2016.

The second problem on builders’ minds is the cost and availability of developed lots. In 2013, this was rated as a significant problem by 46 percent of the contractors who responded to the survey. That grew to 55 percent in 2014 and three more percentage points to 58 percent in 2015. That share rose to 59 percent in 2016.

The lack of available skilled workers and buildable lots could spell trouble for the single-family housing market going forward. ##

(Image credit: National Association of Home Builders)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Existing Home Sales Fall, perhaps due to New Disclosure Rules

January 14th, 2016 Comments off

home for saleMHProNews has learned from builderonline that the sale of existing homes in Nov. 2015 fell 10.5 percent month-over-month and dropped 3.8 percent year-over-year, according to the National Association of Realtors (NAR). This decline marked the first year-over-year drop since Sept. 2014, despite a strong job market.

National Association of Home Builders (NAHB) economist Robert Dietz says the drop could be fallout from the new disclosure rules implemented recently by the CFPB that are causing some mortgage closings to be delayed by one or two weeks.

He says the residential construction industry added 23,100 jobs in Dec. following the increase in Nov. of 31,500 jobs. He adds that a falling unemployment rate and declining labor force should contribute to wage gains in 2016. However, he cautions that if employers hire part-time and underemployed workers the wage gains will not be as noticeable.

In any case, he says as labor market conditions tighten labor costs will rise. ##

(Photo credit: housingwire)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily business News-MHProNews.

Pending Home Sales Slip in Nov.

December 31st, 2015 Comments off

pending sale  paul sakuma  AP Photo creditAccording to builderonline, the National Association of Home Builders (NAHB) reports the National Association of Realtors (NAR) Pending Home Sales Index (PHI) slipped 0.9 percent from Oct., although it is still 2.7 percent ahead of last year at this time. The drop is considered to be more seasonal than substantive.

As MHProNews reported Dec. 22, 2015, sales of existing homes dropped precipitously in Nov. 2015, falling 10.5 percent, partially attributed to the new Know Before You Owe regulations that are causing some closings to be delayed 30-60 days.

Regardless, the falling of the unemployment rate and improving economic conditions signals that the housing recovery continues. ##

(Photo credit: Associated Press/Paul Sakuma)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Framing Lumber Prices have Fallen

November 11th, 2015 Comments off

lumber   wikipediaIn data reported by Calculated Risk Blog, the National Association of Home Builders (NAHB) tells MHProNews the price of framing lumber has declined since 2013 when lumber prices approached housing bubble highs because of higher demand and supply constraints. In the first quarter of 2014, prices did not rise as much because demand was less and there was more supply.

According to builderonline, even with the uptick in housing starts in the U. S., prices are down year-over-year. Multi-family construction does not use as much lumber as single-family, and there has been a definite surge in multifamily starts as tight credit, student debt and stagnant incomes have tempered demand for single-family homes.

In the final analysis, there is more supply overall and currently less demand from China. ##

(Photo credit: wikipediacommons)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Market Conditions are Ripe for Manufactured Housing to Fill A Void

June 9th, 2015 Comments off

question_mark_houses__fotosearchThe aphorism that to own your own home was the American Dream, and that with a little more initiative you could have your very own Dream Home, has proven to be more elusive. As builderonline says, “The fact that easy and crazy lending made ownership possible does not mean that it truly created or satisfied the dream. We all now know how that story is still ending. The times were good for a while until they weren’t. We are still paying the bill for the party.

It was also thought that having a college degree could propel you into the good future, good home, good family. After a period of dropping academic standards and for-profit colleges led to over-the-top student loans, whether they got degrees or not, the jobs did not necessarily exist, and one-time bright-eyed students are left with a mound of debt, some of it non-dischargeable.

Easy credit to buy a home and easy credit to buy an education has saddled many with debt that prevents them from spending elsewhere, like housing. The incredibly low interest rate should be a boon to homebuyers, as well as to builders and developers, but the credit that used to work, now does not.

The raw truth, though, is that it is going to be tougher, and we will have a bad case of unfulfilled demand and frustration to deal with for a while, as the desire to own will be thwarted and rental or roommates will be the undesirable, but necessary, alternative,” says builderonline‘s George Casey.

He says in analyzing the past, most analysts go back only 25 years to 1990, and most do not factor in manufactured housing. But if you return to the 1960s, and include manufactured housing with single-family and multifamily, a different picture emerges. The 1970s was the era of the baby-boomers buying homes, but the overall numbers did not change much until the Great Recession when the average annual builds were halved. Manufactured housing was pushing 19 percent until easy credit set in, and people rushed to buy stick-built.

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During the period from 2005 to 2014, single-family production fell from 77.5 percent of total housing to 60.7, multifamily doubled from 15.9 percent to 33.3 percent, and manufactured housing began at 6.6 percent, rose to 8.3 percent in 2008, and dropped back to 6.0 percent in 2014.

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From 1960 to 2010 the population of the U. S. shot up from 179 million to 308 million, a 72 percent rise, while the housing stock during that time more than doubled, from 58 million to 130 million, a 124 percent increase. Not only did we have more square footage per person per house, “We essentially lived in a period when we created the ability to have more space to store more stuff that we were buying with more credit card and mortgage debt,said Casey.

For the future, he does not see production of 1.6 to 1.7 million housing units roaring back anytime soon, as some analysts have predicted, and expects the rental market to dominate housing for the near future, especially as rents climb and incomes do not. The money that went for a mortgage and car in the past now go to student loans, cell phones, cable TV and internet subscriptions. Longtime job security has been replaced with part-time work and contract status, creating economic insecurity, which does not lend itself to home sales.

He says manufactured housing will remain at six percent of the housing market. MHProNews knows the conditions in the housing market are ripe for that number to solidly increase. ##

(Image credit: fotosearch-question mark homes)

(Statistical tables credit: builderonline)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Clayton Homes Billed as Nation’s Largest Homebuilder

October 23rd, 2013 Comments off

The Manufactured Housing Institute (MHI) and builderonline.com report that Clayton Homes of Maryville, Tennessee is the nation’s largest homebuilder. With over 1.5 million homes built since 1934, and numerous awards for design and construction, Clayton builds manufactured and modular homes, as well as commercial and educational buildings, through 35 facilities around the nation. According to credit.com, nearly 25 percent of Americans between 18 and 24 describe their American dream as being debt free, reports knoxvilledailysun.com. Kevin Clayton, CEO of Clayton Homes, says, “We believe this generation’s attitude shift in consumerism has fueled our company’s growth. We provide hardworking American families with high quality, affordable housing so they can focus on family and the things that matter most in life.” As MHProNews knows, Warren Buffett’s Berkshire Hathaway acquired Clayton in 2003 for $1.7 billion.

(Photo credit: Clayton Homes)