Archive

Posts Tagged ‘comparisons’

Sun Communities Under the Hood – Data Reveals – Manufactured Homes, Communities, Comparisons with Conventional, Multifamily Housing

April 12th, 2019 Comments off

 

SunCommunitiesLogoSUIDataRevealsManufacturedHomeCommunitiesComparisonsWithConventionalMultiFamilyHousingDailyBusinessNewsMHProNews

Someone might take HBO’s Last Week Tonight with John Oliver satirical hit on “Mobile Homes” at face value.  For those lacking sufficient insight, they might be left with the impression that buying a manufactured home is stupid, because the industry is filled with nothing but heartless sharks.  The examples they gave included Warren Buffett, Clayton Homes, and Frank Rolfe, among others.

 

While the industry arguably has problems, as the fact-check of Oliver’s video linked here reflects, those internal and external challenges are from a minority of firms, not the majority.

 

Bloomberg5YearTrendSunCommunitiesDailyBusinessNewsMHProNews

MHProNews is pro-free enterprise, as well as pro-consumer. Money honestly earned is to be celebrated, not denigrated. What John Oliver’s report spotlighted does not apply to all firms, it only applies to a few, albeit typically larger ones.

 

What follows is not a fact check, but rather a review of the most recent Sun Communities investor relation information.

This is not an endorsement, nor a critique.  Publicly traded companies are not guaranteed to provide accurate information, but they certainly are required to provide accurate information with plenty of disclosures.

SunCommunitiesIncSUIManufacturedHomeSalesPriceComparisionConventionalHousingCostFeb2019IRDec312018DataManufacturedHomeCommunityDailyBusinessNewsMHProNews

This first slide addresses the surprising value comparison, that Oliver’s video did note. Oliver’s video called for communities to become ROCs – resident owned communities. As Paul Bradley, ROC USA President , cited by Oliver’s video, told MHProNews, there are good community operations. It would be unfair to reject them all, they should be discerned on a case by case basis. Beyond ROCs, Oliver did not provide any options that could supplant the value that manufactured homes offers the public, particularly those who may not be in a position to afford a conventional house.

 

The timing for this report here on MHProNews is relevant for this reason.

 

SunCommunitiesIncSUIRentalofManufacturedHomeVsOtherRentalComparisionsFeb2019IRDec312018DataManufacturedHomeCommunityDailyBusinessNewsMHProNews

 

While the Oliver video, relying in good measure on the MHAction white paper previously reviewed on the Daily Business News. So careful, regular MHProNews readers were not taken by complete surprise by the claims by MHAction and their strategic allies – the Private Equities Stakeholder Project and Americans for Financial Reform – in their strike on the industry’s giants. ICYMI, the report is found at the linked text-image box below.

 

“Billion Dollar Empire Made From Mobile Homes,” What Washington Post’s Peter Whoriskey Didn’t Report

 

With that brief backdrop, let’s unpack some information developed by Sun Communities Inc (SUI).

 

SunCommunitiesIncSUI-MHGrowthRVGrowthMHProductionVsShareSingleFamilyHousingStarts-Feb2019IRDec312018DataManufacturedHomeCommunityDailyBusinessNewsMHProNews

Manufactured housing is underperforming, as the third graphic above reveals. What the second graphic doesn’t reflect is that 20 years ago, RVs trailed manufactured home (MH) production by 3 to 2 in favor of MH. Today, RVs outsell MH by some 5 to 1.

 

Per their website, The company owns and operates or has an interest in 371 manufactured housing and recreational vehicle communities located in 31 states throughout the United States and Ontario, Canada, as of December 31, 2018. Sun Communities’ portfolio consists of over 128,000 developed sites.”

 

CostToMoveManufacturedHomeRararityMovingManufacturedHomeSunCommunities2-2019ManufacturedHomeDailyBusinessNewsMHProNews

 

They added that, “Established in 1975, Sun Communities became a publicly owned corporation in December, 1993. The company is a fully integrated real estate investment trust (REIT) listed on the New York Stock Exchange under the symbol: SUI.”

 

SunCommunitiesIncSUIFactorsPoweringGrowthFeb2019IRDec312018DataManufacturedHomeCommunityDailyBusinessNewsMHProNews

CaseyMackLegacyHousingManufacturedTinyHomesKudosMHProNews

 

The SUI stock trend for the last five years was inserted by MHProNews as shown above, per Bloomberg on 4.11.2019.

 

SunCommunitiesIncSUIOperatingFinancialGuidanceFeb2019IRDec312018DataManufacturedHomeCommunityDailyBusinessNewsMHProNews

The screen captures shown are from their most recent Investor Relations (IR) presentations herein are not necessarily in sequence.  Once more, our purpose here is to use their information to shed new light on the MHAction white paper, which was a behind-the-scenes driver for Oliver’s viral video.

A secondary benefit of this report is to clarify for investors and perhaps shaken, newcomers to our industry that this industry isn’t as predatory as some might want to make it appear to be.   The balance of the Sun IR report is found here as a download.

That MHAction white paper spotlighted some egregious scenarios that have in fact occurred in the industry. Here on MHProNews and our sister site – MHLivingNews – we’ve features some of the same data, but always with bright line distinctions between the few that do such deeds, vs. the balance who strive to do business in an honorable fashion.  Why didn’t MHI make that argument?  Or is it because those who were spotlighted where essentially all tied to MHI, and the Omaha-Knoxville-Arlington axis?

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

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.

That’s this morning’s initial edition of News through the lens of manufactured homes, and factory-built housing.” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

ManufacturedHousingProNewsMHProNewsConfidentialTipsDocumentsNews

To report a news tip, click the image above or send an email to iReportMHNewsTips@mhmsm.com – To help us spot your message in our volume of email, please put the words NEWS TIP in the subject line.

NOTICE: You can get our ‘read-hot’ industry-leading emailed headline news updates, at this link here. You can join the scores who follow us on Twitter at this link. Connect on LinkedIn here.

NOTICE 2: Readers have periodically reported that they are getting a better experience when reading MHProNews on the Microsoft Edge, or Apple Safari browser than with Google’s Chrome browser. Chrome reportedly manipulates the content of a page more than the other two browsers do.

(Related Reports are further below. Third-party images and content are provided under fair use guidelines.)

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

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.

2) To pro-vide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Re-sources

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.

For Want of a Nail – Manufactured Housing

Michigan Association’s Video Campaign, What They’ve Said About Manufactured Home Living

 

Bryan Manufactured Homes Ban Passed, But Petition Count, Other Legal Moves May Stop Texas City

HBO’s John Oliver on Last Week Tonight Mobile Homes Video, Manufactured Home Communities Fact Check

 

Why is Seattle Dying? Affordable Housing, Misplaced Compassion, and Manufactured Homes

MHARR Calls on New Fannie Mae CEO Hugh Frater to Fully and Properly Implement Federal Law

HUD Study, Analysis of Zoning Discrimination Against Manufactured Housing Sought

 

 

 

 

 

Apartments vs. Manufactured Housing, NMHC and NAR Data, Opportunities

August 18th, 2018 Comments off

 

ApartmentsVsManufacturedHomesNMHCNARDataOpportunitiesDailyBusinessNewsMHProNEws

National Multifamily Housing Council® (NMHC) and National Association or Realtors® (NAR) are the sources for bulk of the data and graphics, shown below.

 

The executive summary could be captured with a statement made by Scholastica ‘Gay’ Cororaton, Certified Business Economist (CBE), with the National Association of Realtors® (NAR).

MonthlyMedianGrossRent2016HousingTypesManufacturedHomesScholasticaGayCororatonNARDailYBusinessNEwsMHproNews

Note there seems to be a difference between NAR and NMHC data on median rents.

She said “Based on 2016 latest data, the median household income among manufactured homeowners was $43,900, about half the median household income among all homeowners.  The median household income of manufactured homeowners is about the same as the median income of all renters, at $42,500. This indicates that renters can transition to homeownership without significant change in housing expenses via ownership of a manufactured home, if other factors that homebuyers look for are also met (e.g., accessible transportation, presence of a good school, other neighborhood qualities).”

Let’s start with the age of multifamily housing rental units, which many may find surprising.

Why?

WhenWhereApartmentsBuiltNMHCDailyBusinessNewsMHProNews

Because out of 19.506 million apartment units, using NMHC data, 10.316 million were built after 1980.

CharacteristicsofAptRentalUnitsNMHCDailyBusinessNEwsMHProNews

So, over 9 million units were built before 1980, with 2.137 million units built on or before 1939.

NMHCAptMedianRentNMHCDailyBusinessNewsMHProNews

Note there seems to be a difference between NAR and NMHC data on median rents.

Cororaton’s data reveals that it would be a simple budgetary change to go from an apartment to a manufactured home.  Her data also shows the appreciation possible in a modern manufactured home.

ComparisonMonthlyPaymentsChattleLandHomeMixedVsConventionalExistingHomesNARScholasticGayCororatonDailYBusinessNewsMHProNews

By contrast, there is obviously no equity in an apartment rental.  So there’s about 225 percent more apartments than manufactured homes. Since turnover is steady in apartments, that’s a vast market opportunity.

DTIRatiosConventionVsManufacturedHomesNARSchoalsticaCororatonApartment construction is booming.

HousingAppreciationByLoanTypeManufacturedHomesScholasticaGayCororatonNARDailyBusinessNewsMHProNews

Like RVs, they are out-performing manufactured homes by a country mile.

What RV Industry’s 2018, Prior Results Reveal for Manufactured Housing

The RV report, linked above, reminds professional readers and investors that RVs trailed manufactured housing in 1998.  20 years later, they are outselling manufactured homes by some 5 to 1. See that report to learn more.  It’s opportunity in disguise for those who see it, and get it.

SunCommunitiesSUI-InvestorPageComparetoMultiFamilyHousing10ManufacturedHomeCommunitiesIndustryDailyBusinessNewsMHProNews600

Graphic, data, per Sun Communities (SUI).

There is a need for every kind of housing that exists.  Some need or want a short- to medium-term rental. But with hundreds, if not thousands, of manufactured home communities offering rentals, that too could be a market for the manufactured housing industry.

When Bloomberg, NAR and others are increasingly featuring positive news about manufactured homes, that should make investors sit up and take notice.

Bloomberg “New Home for $90,000? Manufactured Housing Is Making a Comeback” Reveals MH Media Challenge

Even high rises could be done with manufactured homes, when density is an issue. See that related report, linked below.

So manufactured homes are a common-sense choice. Millennials and others must be shown why they are a cool, even savvy, option.

IfPrettyPicturesVideosAloneWereEnoughMHIndustryWillOnlyAchieveItsGoalsByResovingItsCoreIssuesLATonyKovachMHProNews1

Learn more about the above, linked here.

Perhaps these are among the reasons why the Blackstone Group has recently entered the manufactured home space? See that in the related reports, linked below.

Notice: We plan an upcoming report on MHLivingNews on this issue, designed for the general public.  Sign up herein seconds for our industry-leading, typically x2 weekly, emailed headline news updates. “We Provide, You Decide.”  © ## (News, analysis, and expert commentary.)

(Third party images and content are provided under fair use guidelines. All rights reserved.)

L. A. “Tony” Kovach and his wife Soheyla co-founded and publish the manufactured home industry’s two leading tradeLATonyKovachMHLivingNewsMHProNewsPublisherIndustryExpertConsultant

media; Manufactured Home Living News (MHLivingNews.com) and MHProNews.com for business professionals and investors.

Kovach’s work has been featured in publications such as the Washington D.C.’s The Hill, Value Penguin, Chicago Sun Times, and a host of other media. He’s been involved in the manufactured home industry as a manager, high-volume retail center owner, consultant, and publisher for over 25 years. Kovach has likely interviewed more industry professionals, experts, and manufactured home owners, than anyone in U.S. news media.

 

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.EmailedMHProNewsHeadlineNewsDailyBusinessNews
2) To provide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

3) Marketing, Web, Video, Consulting, Recruiting and Training Resources

Related Reports:

Blackstone Brilliantly Bets Big On Manufactured Housing, Enters Manufactured Home Communities Contest

High-Rise Manufactured Home Stackable Towers, Compete with Modular/PreFabs, Density at Lower Cost

 

Fresh Facts, Figures, Future of Affordable Housing -Comparisons- Conventional Site-Built v Mobile/Manufactured Home Industry Data

“Thou Shall Not Steal,” $2 Trillion Annually Lost to Lack of Affordable Homes, Making the Manufactured Home Case

 

Warren Buffett Would be Okay With Clayton Homes Losing Money, Says Kevin Clayton – But Why?

Manufactured Housing Shipment Totals, June 2018

“Amazing Future Homes” Video

November 9th, 2016 Comments off
amazingfuturehomescredithchannel-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credit: HD-Channel.

Modular housing has seen significant progress over the years, with many levels of creativity.

Revolution Homes, which the Daily Business News covered recently, has partnered with a number of designers to create progressive models.

The team at HD-Channel has created a fun video that takes a look at the future of modular homes, and how flexible they can be.

 

Here in the U.S., Vallejo, California based Blu Homes has worked to create homes similar to what the HD-Channel video shows.

amazingfuturehomescreditbluhomes-postedtothedailybusinessnewsmhpronewsmhlivingnews

Credit: Blu Homes.

Daily Business News, MHProNews and MHLivingNews Publisher L.A. “Tony” Kovach commented on the video, providing clarity on the use of language.

latonykovachcreditsmhvillagemhpronews-manufacturedhousingindustrynews-mhpronews

L A ‘Tony’ Kovach, credit, MHVillage.

The video is certainly interesting,” said Kovach. “In the United States, these homes would best be described as a modular or prefabricated (prefab) home. The other terms suggest that the producers of this video are perhaps from Australia, England or some other nation where terms like “caravan” would be more commonly used than in the U.S.

MHLivingNews has an in-depth comparison of modular and manufactured homes here. ##

(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.