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Posts Tagged ‘homeownership’

Comparing Luxury Real Estate with Modern Manufactured Homes, Opportunitie$ Knock

August 28th, 2017 Comments off
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Featured image credits CNBC, Mobile Corral, MHProNews.

With housing costs on the rise – especially for renters – the idea of owning a conventional house seems unrealistic for millions.

While some people spend millions to live in a mansion, others throw that kind of money around on small vacation homes – including manufactured homes – in prime real estate locations.

The range of costs is a wide one. For example, per CNBC, a $2 million-dollar house can range from 3,000 – 15,000 square feet, depending on the market, property size, and amenities like in-ground pools, elevators, electric car outlets, and more.

They may also come with features that many would love and have, such as:

  • hardwood floors,
  • granite countertops,
  • higher-end appliances,
  • and built with energy efficiency in mind.

If you wanted a brand-new home, the average cost in 2014 was about $289,000.

In just the last few years that has increased significantly. According to the U.S. Census Bureau the current average selling price of a brand new single-family home in the U.S. so far in 2017 is $406,400.

That’s over $100,000 more than it was only 3 years ago.  That amount would buy the typical multi-sectional manufactured home.

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A manufactured home with luxury items like granite counter tops and hardwood floors. Image credit, TRU Factory Direct.

Promoting Modern Manufactured Housing as an Affordable Alternative

What is often missing from reports like CNBC’s is what’s obvious to industry professionals.  What if there was a way to get all the amenities of a more expensive home – granite counter tops, hardwood floors, and an energy-efficient home – for less than a third of the cost of the average new home in America?

As Daily Business News readers and manufactured housing industry professionals already know, that’s entirely possible through HUD Code manufactured homes.

The average sales price of a single sectional manufactured home as of Dec. 2016, according to the Census Bureau, was $49,900.”

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$2 million site-built home. Credit, CBNC.

For the same price tag as those extravagant $2 million houses someone could have purchased 30-40 single-section manufactured homes at the price cited above from the U.S. Census Bureau.

Similarly, compared to the average price of a single-family home, you could buy 8 single-section manufactured homes, or about 5 multi-section manufactured homes.  These facts are among the reasons that professionals like Credit Human’s Barry Noffsinger has been promoting the manufactured home industry outreach to the conventional residential home buyer.


Tragedies like the storm and waters of Harvey will bring out several thousands buyers.  But what Noffsinger and other industry professionals promote is making manufactured housing a mainstream option.

As HUD Secretary Ben Carson has said in an interview with Fox News, home ownership is essential to success.

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Dr. Ben Carson, HUD Secretary, official photo.

It [homeownership] is the primary mechanism where by families accumulate wealth,” Carson said.

Carson has also said that the average of net-worth of families who own their homes is $200,000. In comparison, the average net-worth of those who rent is only $5,000.

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John Bostick, president, Sunshine Homes, Red Bay, AL.

We rival site building and a fraction of the cost,” said John Bostick, President of Sunshine Homes. “With the affordable housing crisis, the timing couldn’t be better for the nation to discover what factory built homes truly are today.”

 

So why aren’t more people buying manufactured homes if they are so affordable?

As industry veterans know, a lot of it has to do with the stigma surrounding factory built housing.

That is perpetuated by problematic media coverage and the continued use of the wrong terminology.

FightingFakeNewsTrailerParkNationFeatureCreditOzyMediaMHProNews

Featured image credits, Ozy Media, MHProNews.

When people – including, sadly, a sizable number of industry professionals – call a manufactured home a ‘mobile home,’ they are de-valuing the appeal of a home through their words.

A recent Daily Business News article covers all the proper terminology within the factory-built housing industry. From manufactured to modular, prefab to 3D printing, container housing and tiny homes. Click here or on the image above to read the article.

Mobile homes haven’t been in production in over 40 years now – and its been even longer since ‘trailer homes’ were built.

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Since June 15th, 1976 all manufactured homes have been subject to HUD Code regulations that ensure they are safe and strong. In many cases they out perform traditional ‘stick-built’ homes in cases of severe weather.

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“A rose by any other name would still smell as sweet,” wrote William Shakespeare. But calling a manufactured home, a ‘trailer’ or other inaccurate terms has adverse consequences for home owners and the industry. Collage credit, MHProNews.

Here in America, by embracing the law as provided under the Manufactured Housing Improvement Act of 2000 (MHIA 2000), we could be providing the homes that realtors need to meet the demand for housing under $200,000.” Sunshine’s president said their rapid rise in sales is proof that the market is responding to the residential style manufactured home product.

If more people knew the way, the standards and the quality of manufactured homes, a lot more people would buy,” said Karen McKibben, manufactured home owner from Paris, Tennessee. ## (News, Analysis.)

(Image credits are as shown above, and when provided by third parties, are shared under fair use guidelines.)

JuliaGranowiczManufacturedHomeLivingNewsMHProNews-comSubmitted by Julia Granowicz to the Daily Business News for MHProNews.

 

Who is Choosing Homeownership?

March 9th, 2017 Comments off
WhoisChoosingHomeownershipcreditTawbaWare-postedtothedailybusinessnewsmhpronewsmhlivingnews

NAR headquarters. Credit: TawbaWare.

A new survey from the National Association of Realtors (NAR), shows some rather interesting statistics, and opportunities for the manufactured housing industry.

According to Furniture Today, the 132-question survey, as a part of the 2017 Home Buyer and Seller Generational Trends study, showed that “Generation X” households are buying more homes, a growing number of Millennial and younger Baby Boomer households have children living at home, and more Millennials are buying outside of the city.

The study showed that an improving economy, multiple years of strong job growth and a notable increase in home values fueled a greater share of purchases from Generation X households over the past year.

Lost in this discussion are the numerous Generation X households who bought their first home, started a family and entered the middle part of their careers only to be rattled by job losses, falling home values and overall economic uncertainty during and after the Great Recession,” said Lawrence Yun, NAR chief economist.

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Lawrence Yun. Credit: The Business Journals.

This year’s survey reveals that debt and little or no equity in their home slowed many Gen X households from buying sooner.

Yun also said that recent Gen X buyers delayed buying longer than Millennials due to debt, and were also the most likely generation to have previously sold a distressed property, and want to sell earlier but couldn’t because their home was underwater.

Gen X sellers’ median tenure in their previous home was 10 years, which puts many of them selling a property they bought right around the time home values were on the precipice of declining,” said Yun.

Fortunately, the much stronger job market and 41 percent cumulative rise in home prices since 2011 have helped a growing number build enough equity to finally sell and trade up to a larger home. More Gen X sellers are expected this year and are definitely needed to ease the inventory shortages in much of the country.

The survey also showed that the increase in purchases from Gen X buyers this year, 28 percent, was the highest since 2014 and up from 26 percent in 2016.

Millennials represented the largest group of recent buyers for the fourth consecutive year at 34 percent, but their overall share was down slightly from a year ago, which was 35 percent.

In what has been a growing trend, younger boomers reportedly considered adult children when buying, with increases in the cost of rent in many areas is prompting many middle-aged parents to buy a home with their young adult children in mind.

Younger boomers were also surveyed as the most likely to purchase a multi-generational home, with the top reason being that children over 18 years old either moved back home or never left.

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Credit: NAR.

The job market is very healthy for young adults with a college education, but repaying student debt and dealing with ever-increasing rents on an entry-level salary are forcing many to either shack-up with several roommates or move back home,” said Yun.

This growing trend of delayed household formation is one of the main contributors to the nation’s low homeownership rate.

Also of note were responses from millennial buyers, as more have at least one child and also have a need for more space.

Breaking from prior trends, only 15 percent of millennial buyers bought in an urban area, which is down from 17 percent last year and 21 percent two years ago.

Millennial buyers, at 85 percent, were the most likely generation to view their home purchase as a good financial investment,” said Yun.WhoisChoosingHomeownershipcreditMHLivingNews-postedtothedailybusinessnewsmhpronewsmhlivingnews

These strong feelings bode well for even greater demand in the future as more Millennials settle down and begin raising families. A significant boost in new and existing inventory will go a long way to ensuring the opportunity is there for more of them to reach the market.

For more from the NAR, including MHProNews and MHLivingNews Publisher L.A. “Tony” Kovach’s report on the significant opportunities for manufactured housing, click 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.

Homeownership Remains the Core of the American Dream

February 21st, 2017 Comments off
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The inside of a Champion Home. Credit: Champion Homes.

A recent poll commissioned by the National Association of Home Builders (NAHB) shows that homeownership is still at the core of the American Dream.

According to the Times NWI, even as housing markets continue to recover at different rates around the country, the American Dream of homeownership remains strong – four out of five Americans believe that owning a home is a good investment.

And, they believe that it’s something policymakers need to take active steps to encourage and protect.

When surveyed about investments, 82 percent of respondents rate “a home for you to live in” as a good or excellent investment, which was the highest of six choices, retirement accounts coming in second at 67 percent.

And, as the Daily Business News has reported, contrary to some concerns about Millennials rejecting the idea of homeownership, 81 percent of 18-29-year-olds want to buy a home.

Perhaps most striking is that 55 percent of those surveyed said the biggest obstacle to buying a home was finding a home at an affordable price.

Additionally, 50 percent of those surveyed citied insufficient savings for a down payment as an obstacle and 41 percent reported difficulty getting approved for a home loan as a challenge.

Finally, 72 percent of survey respondents support the government providing tax incentives to encourage homeownership.

Benefits, particularly the mortgage interest deduction, which has been included in the tax code for more than 100 years, have been critical to developing the American Dream of homeownership.

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Video report with powerful insights and links to third party experts, sharing compelling insights about manufactured homes.

MH, a Solution Hiding in Plain Sight 

MHProNews and MHLivingNews continue to cover the challenges as well as the numerous advantages that the manufactured housing industry provides in the U.S., making affordable, quality housing easily available to most of the population.

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Jim Clayton, right. L. A. “Tony” Kovach, left. Photo credit, MHProNews.com

MHProNews and MHLivingNews publisher L.A. “Tony” Kovach provides deep insight into this opportunity in Obstacles and Opportunities in Affordable Housing – October 2016, and the understanding that the solution to affordable housing is hiding in plain sight.

With new attitudes about housing, millennials are also looking for viable economic solutions that also provide the opportunity for sustainability.

Leaders in business also clearly understand the opportunity, such as Warren Buffet and Berkshire Hathaway, which owns Clayton Homes, and Sam Zell, Chairman of Equity LifeStyle Properties, or independents such as John Bostick, with Sunshine Homes.

Giants and independents alike are “doubling down” on the manufactured housing industry, with Zell being quoted as saying during this interview “Everyone calls them trailer parks. Pencil head, it’s not a trailer park.

Sunshine Home’s John Bostick knows the challenges facing manufactured housing, as well as the immense opportunities when he reminds professionals that “Easy doesn’t pay well.” What Bostick means is that it is only through effort that manufactured housing will advance to its potential. ##

 

(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.

Minorities, Millennials Still Believe in American Dream

March 3rd, 2016 Comments off

homeownership   fotosearch stock photoThe semi-annual Housing Confidence Index poll survey conducted by Zillow reveals that 65 percent of Millennials (18-34) and almost 70 percent of Hispanics agree with the connection between homeownership and the American Dream. Millennials in Los Angeles-Long Beach-Anaheim agreed the most, 86.9 percent, while that same demographic in Philadelphia agreed the least at 44 percent, as reported by nationalmoretgagenews.

Next on the list are those 65 and older, essentially the Millennials’ grandparents who support the association, at 63.9 percent, followed by people 50-64 who agree the least at 56.9 percent. As MHProNews understands, it may be the last group who were the most affected by the foreclosures and turn down in the housing market.

Racially, the survey discovered that 64 percent of Asian respondents make the association between homeownership and the American Dream, followed by 63 percent of black respondents, and whites with the least agreement at 57.6 percent.

Surveying 10,000 renters and homeowners across the country, research and consulting firm Pulsenomics did not exactly define “American Dream,” but did indicate homeownership is “integral” to the American Dream.

The American dream is really about opportunity, which means a lot of things to a lot of different people,” Svenja Gudell, chief economist at Zillow, said in the release. “For young Americans and Americans of color, the opportunity to own a home is a big part of that dream.”

However, despite Millennials optimism, only 46 percent of the renters among them were confident in their ability to own a home. That number was 50 percent just six months ago. Zillow points out this age group has rented longer than previous generations as home prices rise faster than wages.

Terry Loebs, founder of Pulsenomics, said housing confidence has risen in every metro area survey the past two years. “Amidst turbulent financial markets and unsettling election year politics, confidence in the U.S. housing market has proven resilient in recent months, even as investor confidence, business confidence and consumer economic sentiment have wavered,” he said. ##

(Image credit: fotosearch–the American Dream of homeownership)

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

Turning Renters to Manufactured Home Buyers

June 4th, 2015 Comments off

rent versus buy   rent-directMHLivingNews and MHProNews publisher L.A. “Tony” Kovach follows the time line formation of renter households versus homeowner households, from the New Deal’s attempts to increase homeownership in 1933 to present day attempts, correlating Fannie Mae and Freddie Mac expansion with economic programs, artificially induced interest rates and subsidies to stimulate home buying.

In the 1990s and into the 2000s there were concerted efforts to extend credit to those with modest means in an attempt to keep the American dream of homeownership alive, to give people hope. The Federal Reserve’s key interest rate was the lowest in 45 years, but lenders got loose with loan standards, which led to homeownership peaking at 69.2 percent in 2004.

However, home prices begin falling as the subprime mortgage industry imploded: bundles of questionable loans were sent around like hot potatoes until the potatoes turned rotten, leading to the Great Recession in 2008. Foreclosures increased, lending standards tightened, home prices bottomed out, employment fell, and many people turned their backs on owning a home, leading to a rise in the rental market.

Although the recession was declared over in June 2009, the recovery of the housing market, which is a major ingredient of a strong economy, has been painfully slow. First-time home buyers historically comprise 40 percent of home sales, but that number has fallen to 30 percent, leading to slack new household formation as Millennials slowly emerge from their parents’ basements and head to rental properties.

Employment has been increasing but wages are flat, and as the demand for rentals increase, so do the rents, putting homeownership further out of reach of many would be homebuyers.

Kovach: “Manufactured housing is ideally suited to tap into this rental market. As we reported last year, the National Association of Realtors (NAR ®) reported that some 85% of renters in a survey said they want to be home owners.

The reason we in MH can make this happen is because we can save them money and give them the lifestyle they want. But it won’t happen without a planned effort that changes perceptions.

John Bostick, CEO and president of Sunshine Homes, encourages manufactured home professionals to get behind Kovach’ MH Alliance-Partners in Progress-effort to help spread the good news about quality MH to the public at large. He says,”We either define ourselves or others will define us. When others define us, it is often to our detriment.

Others have been defining the industry for way too long. It’s time to turn the tables. Average rent nationally is around $1200 a month. Average price of a new manufactured home is $64,000. Do the math.

For the full article, please click here. ##

(Image credit: rentdirect)

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

Teens plan saving for a new home instead of buying video games, a New Study says it’s true!

October 30th, 2014 Comments off

teens-inman-shutterstock=credit-posted-daily-business-news-mhpronews-com-The 13- to 17-year-olds of “Generation Z” believe homeownership is more important than graduating from college, getting married or having children. Inman reports to MHProNews that teens in the survey indicated that they’d give up perks like video games, eating out, social media or music downloads if it meant affording any house they wanted. That’s per results to an online survey of 1,000 teens conducted between July 18 and July 29, commissioned by Better Homes and Gardens Real Estate.

We have a clear view of tomorrow through our millennial consumer research — now it’s time to look at the day after tomorrow,” said Sherry Chris, president and CEO of Better Homes and Gardens Real Estate.

The study suggests good news for home builders, but not so good news for realtors.

97 percent of respondents expect to own a home in their lifetime. Only 41 percent expect they’ll find their future home with the help of a real estate agent, which if true, is a clear departure from the 89% of home shoppers today who say that using an agent yielded helpful information in home buying. 19 percent said they are likely to purchase a home online. No surprise that while some realtors found the study interesting, they’re not buying the results.

Here are survey results from the NAR research study:

In the future, which of the following steps of the home buying process, if any, are you likely to do online?

Response Percent of respondents
View home listings 85%
Take a virtual tour 71%
Video chat with real estate agents 29%
Sign paperwork 19%
Purchase the home 19%
None of these 5%

Source: Wakefield Research 

On-line comments to The Better Homes and Garden Real Estate study was primarily from real estate agents stressing the importance of the service of a Professional Realtor. An Atlanta realtor responded on-line with this reaction.

Oh how I try not to be cynical….but this business makes it so very hard. Surveys of 13-17 year olds? Really? Are we at that point now? I have one of those and one just past that, ask them the same “survey” every day for a week and you’ll get seven different results.”

Does this study suggest opportunities for manufactured housing?

The opportunity to forge a new image with the younger generation can’t be missed,”  said L. A. Tony Kovach, managing member of LifeStyleFactory Homes, LLC, parent company to MHProNews  and MHLivingNews.com. “They are ready to be different. We offer a home that is similar – yet different! – with manufactured and modular homes.” ##

(Photo credit: Shutterstock/Inman)

michael-francis-daily-business-news-mhpronews-com-(Submitted by Michael Francis to Daily Business News – MHProNews.)

 

Millennials on the Verge…….

July 8th, 2014 Comments off

Following a story MHProNews last posted June 27, 2014 regarding the Millennial generation living with their parents, Harvard University’s Joint Center for Housing Studies reports the decline in homeownership rates among 25-34 year-olds fell nearly eight percent from 2004-2013. Similarly, among 35-45 year-olds the rate fell nine percent. Real median income for the group aged 25-34 fell 11 percent from 2002 to 2012, and households with student loan debt for that same age range increased from 26 percent in 2001 to 39 percent in 2010, both hindering homeownership, according to inman.com. Minorities will drive 76 percent of overall household growth, but continue to have a difficult time obtaining financing. ##

(Graphic credit: Joint Center for Housing Studies data derived from the U. S. Census Bureau)

Home Cash Buyers Big in Q1; Housing Market a “Crapshoot”

July 7th, 2014 Comments off

Christine Romans of CNNMoney reports almost half of residential real estate deals in the first quarter of 2014 were “swaggering cash buyers, investors from overseas, private equity funds, wealthy individuals,” who comprised a record high 42.7 percent of the purchases. First-time homebuyers were not a significant part of the housing recovery, but with mortgage rates falling again—4.14 percent for the 30-year fixed rate, the lowest rate since October of last year, and 3.25 percent for the 15-year fixed rate–now is a good time to buy, but only if you can afford it. She says the White House is encouraging governmental agencies to make it easier for qualified buyers to obtain loans to buy homes.

Meanwhile, Karl “Chip” Case, co-creator of the S&P/Case-Shiller home price index, calls the housing market a “crapshoot.” He says, “You’ve got much more negative vibrations in the housing surveys about homeownership than we ever had before.” He says the key indicator to watch is housing starts, as MHProNews has learned, and each time in the past it has fallen below a million a month (annualized) it has come right back—except for the recent Great Recession. It fell below 500,000 in 2009, a rate that many thought could never happen, and the return has been very slow. He says the housing market is more segmented, that some areas will see better results than others. “The Chinese are coming over here with millions and billions of dollars, and they want to spend it on assets that tend to hold their value. And at least the theory is that housing does. But it is far from what it was in 2004,” Case adds. ##

(Image credit: totalmortgage.com)

Barriers to Increasing Homeownership Abound

June 27th, 2014 Comments off

While minorities are expected to comprise almost half of the first-time homebuying market within the next ten years, mortgage lending to minorities has fallen 25 percent more than for whites since the mortgage bust. According to the Joint Center for Housing Studies at Harvard University, during the decade from 2004 to 2013 the homeownership rate for blacks has fallen 590 basis points, from 49.7 percent to 43.8 percent, after crossing the 50 percent line for the first time from 2004 to 2008.

As nationalmortgagenews.com informs MHProNews, credit standards will have to be lowered, as the Joint Center’s report says: “Their [minorities’] demand for owner-occupied housing will depend in large measure on the availability of mortgage financing that accommodates their limited resources.” While monthly payments for median-priced homes increased 23 percent in just one year, “Between 2007 and 2012, real median household incomes dropped eight percent among 25-34 year olds and seven percent among 35-44 year olds,” according to the report. Given soaring student debt, the report concludes the growth of national homeownership will depend upon the easing of credit in coming years, absent a booming overall economy. ##

(Image credit: forbes.com)

Homemownership Declining

November 29th, 2013 Comments off

Noting that Oklahoma City is the only larger metro area with a stable homeownership, HousingWire suggests that rural areas may be the next move to find affordable homes. Homeownership in New York is 53.9 percent, while in West Virginia, where the median home value is $98,300, it is 72.9 percent. The District of Columbia has the lowest rate at 41.6 percent, according to Census data. Median home values remained steady in smaller counties while they fell in 43 of the largest 50 larger counties, as indicated in the Nov. report. MHProNews has learned of the 50 largest metro areas in terms of population, 49 saw decreases in homeownership.

(Image credit: FotoSearch)