Posts Tagged ‘housing affordability’

Builder Confidence Drops, Post Midterms, Affordability Concerns Rise

November 20th, 2018 Comments off


Growing affordability concerns resulted in builder confidence in the market for newly-built single-family homes falling eight points to a level of 60 in November on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), writes Robert Dietz  In a release to the Daily Business News on MHProNews. “Despite the sharp drop, builder sentiment still remains in positive territory. Builders report that they continue to see signs of consumer demand for new homes but that customers are taking a pause due to concerns over rising interest rates and home prices.”


In a separate video aimed more to their own members, NAHB also spends about 15 minutes focusing on the impact of the 2018 midterms on the housing market, which in turn influences builder confidence. So, the NAHB quotes above and below are more geared to the general population.



For the past several years, shortages of labor and lots along with rising regulatory costs have led to a slow recovery in single-family construction. While home price growth accommodated increasing construction costs during this period, rising mortgage interest rates in recent months coupled with the cumulative run-up in pricing has caused housing demand to stall. As a consequence, builders have adopted a more cautious approach to market conditions.”




The decline of builder confidence should be noted by policymakers. Recent statements on economic conditions have lacked commentary on housing, even as housing affordability has hit a 10-year-low. Given that housing leads the economy, policymakers need to focus more on residential market conditions,” said the NAHB.




The MHVille Takeaways?

HUD Code manufactured housing ought to be surging, not snoozing, in the light of data like this.  This is yet another not-to-be-ignored statistical evidence that manufactured housing’s post-production leadership continues to fail small-to-mid-sized firms.


National New HUD Code Manufactured Home Production Data Summary, September 2018 Analysis


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Machiavellian “Godfather” – Sam Zell, Warren Buffett, Capital, Lending and Crossed Lines in Manufactured Housing

Sunday Morning Weekly Recap Manufactured Housing Industry News July 2 to July 9, 2017

July 9th, 2017 Comments off

MHProNewsHomePage610.2017IpadManufacturedHousingIndustryReportsRecapResearchDataAs vacation season rolls on, we’ll try something just a little bit different again today for our weekly recap of .  Reader feedback, always encouraged and appreciated.  Matthew and his work are missed, but we hope his trip to the mountains will be a good one!

What’s New on

We’re testing out some new things on the Daily Business News this week too, and have had some guest writers doing reports for us.  Traffic on these reports have been good  – that’s always a positive sign – but your written feedback is appreciated.

July 8th, 2017 


To see this report, click here or the image above.

July 7th, 2017


July 6th, 2017


See the report by clicking the image above.

July 5th, 2017


Smiling faces at the Lakeside closing, the names for those shown were not immediately available.

July 4th, 2017


July 3rd, 2017


July 2nd, 2017


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. ##


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

Modular Slowly Making Inroads in Australia’s Residential Projects

August 6th, 2015 Comments off

aussie_modular_bgc_residential__businessnews_auAs the modular industry innovates to meet housing affordability head-on, widespread acceptance of the product is being hampered by the way banks lend on residential development, according to in Australia.

Modular techniques offer up to 40 percent time savings on construction, lower energy bills for buyers of modular homes based on research by Curtin University, as well as significantly lower funding costs of 35 to 40 percent less than traditional building methods.

CU researcher Jemma Green says, “Because you build it faster, you borrow the money from the bank for less time, so you draw down the debt faster. If you’re an equity investor you want your money in and out of the project, and if you’re building it faster you’re selling it faster, so there is an equity uplift of about 15 percent.

However, she says banks typically make progress payments on site, when the walls are up, the roof is on, the doors are locked, etc. Since modular homes are built inside a factory, Banks are hesitant to make payments for progress that isn’t happening on site.” The result is builders have to self-fund projects which limits their ability to build, as MHProNews understands.

While several of the largest modular builders have developed modular projects for the Department of Housing, there are still a lot of misconceptions that modular is not equivalent in quality to site built homes. Geoff Cooper, director of housing for the Master Builders Association, said modular will have a larger market share over time, but right now there is a lot of prejudice from realtors, appraisers and a building community that is conservative and does not want to change.

He said, “There are a lot of quality control systems in place to ensure the product they bring to market is of a very high quality and they get very frustrated in the perceptions of modular being cheap, nasty and poor performing. As an association we are working to try to change consumer perceptions on that point.##

(Photo credit: Residential)

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

Times’ Talton tells housing affordability woes with two tables

October 9th, 2014 Comments off

laborshare-fredgraph-bls=stlouisfed-posted-seatle-times-dailybusinessnews-mhpronews-Jon Talton at the Seattle Times shares his take on the housing affordability challenge with MHProNews that could be summed up with this quote:

In other words, housing is less affordable because most American workers are making less.”

Talton notes that some areas on the West Coast have “crazy high housing cost” but also points out that Places with “cheap” rents and mortgages also pay poorly.

While the second statement may be exaggerated to make his case, with Texas as an example of a blend of job and wage growth with more affordable housing than some other regions of the U.S..

Nevertheless, the points Talton makes are important. The reality of declining earnings and increasing demand for rentals, as manufactured and modular housing professionals and enthusiasts know, are precisely what opens the door for potential opportunities in numerous American markets. ##

wages-fredgraph-stlouisfed-posted-seattletimes-and-daily-business-news-mhpronews-com-(Image credits: Fredgraph-SeattleTimes, sources St. Louis Federal Reserve, Bureau of Labor Statistics)


NAHB and MHARR agree, even $1000 price increase Reduces potential Home Buyers

August 25th, 2014 Comments off

nahb-news-image-creditThe National Association of Home Builders (NAHB) released a study, cited by MHARR, that points to the fact that every $1,000 in price increase on a home decreases the number of potential home buyers by some 200,000 nationally.

The study opens with the statement, “One of the often overlooked impacts of building regulations is their effect on housing affordability. Every time a local or higher level government issues a new construction regulation it raises construction costs by, for example, increasing the price of construction permits or impact fees. Higher costs invariably translate into higher home prices and higher prices in turn disqualify more households from being able to afford new homes.”

The report by Natalia S. Siniavskaia, Ph.D. was released as Special Studies, on August 1, 2014, by the Economics and Housing Policy division of the NAHB. A download of the full report is available, at this link here.The median new home price for the United States is set at $275,000 for 2014. It is based on monthly median new home prices reported by the Census Bureau over 2013 and the first four months of 2014.”

Compare that median cost for conventional home building to the median price of a single section manufactured home (MH) at $42,200 or multi-sectional MH at $78,600, also per U.S. Census Bureau figures, click here for the full report by state and region.


This issue dovetails with concerns expressed by HUD Code manufactured home builders, expressed in this article linked below.

HUD Code Manufactured Home Producers Want Regulatory Fairness and Stronger Congressional Oversight

The above was also mentioned by the Manufactured Housing Association of Regulator Reform (MHARR) in their commentary on this topic.

Forward thinking manufactured housing professionals understand that while HUD Code MH can uniquely serve the lowest rungs of the housing ladder, future opportunities for growth depends upon the ability of industry professionals to individually and/or collectively to attract more cash and credit worthy customers currently served by apartments, rental housing, real estate agents or conventional housing builders. ##

(Image credits: NAHBeNews, NAHB Price Out Study)

Housing Affordability Rises Slightly in First Quarter 2014

May 14th, 2014 Comments off

The National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI) reports lower median prices and steady mortgage rates contributed to higher housing affordability in Q1 2014, rising from 64.7 percent of homes sold in Q4 2013 that were affordable to families earning the median income of $63,900, to 65.5 percent in the first quarter of this year. The national median home price fell from $205,000 in Q4 to $195,000 in the first three months of 2014, has learned, while mortgage rates during that period changed very little, from 4.54 to 4.57. Syracuse, New York ranked as the most affordable major housing market in the first quarter 2014, where 93.7 percent of all new and existing homes were affordable to families earning the region’s median income of $67,700. “Housing affordability remains strong and this is an encouraging sign as the spring home building season moves into high gear,” said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Del. ##

(Photo credit:–homebuyers)

NAR: Housing Affordability Hindered by Stagnant Incomes

February 12th, 2014 Comments off

While the latest quarterly report from the National Association of Realtors (NAR) reveals the vast majority of metropolitan areas continued to experience strong year-over-year price growth in Q4 2013, a companion metro area annual affordability report pictures less favorable conditions, particularly in the West. According to, with 119 out of 164 metropolitan statistical areas recording gains based on closings in the fourth quarter compared with the same period of 2012, the median existing single-family home price rose in 73% of the markets.

Lawrence Yun, chief economist for NAR, says there are two interpretations of the gains in home value: The significant gains in home equity over the last two years has resulted in increased consumer spending, which is good for the overall economy. At the same time, as understands, Yun says, “Home prices have been rising faster than incomes, while mortgage interest rates are above the record lows of a year ago. This is beginning to hamper housing affordability.”

(Image credit:–home prices increase)

Mark Dotzour: Texas Housing Recovery in Full Swing

September 25th, 2013 Comments off

The Chief Economist of the Real Estate Center at Texas A&M University forecasts higher prices, reduced inventory and more home sales in 2014 for the state. Mark Dotzour says, “If you are a real estate professional in Texas, I would suggest that you not take a vacation at all in 2014. It is shaping up to be a busy year.” As MHProNews has learned, Texas suffered less than most other regions of the country during the recession, and the state has added 459,000 jobs since Jan. 2012, according to Dotzour, and he expects that to continue through 2014. According to, although mortgage rates are slowly rising, they remain at historically low rates. Adds Dotzour: “In the late ‘70s, we thought 8 percent mortgages were cheap. Five percent was unheard of. Now the media is saying higher mortgage rates will make houses unaffordable and derail the housing recovery. It won’t. Look at the numbers for housing affordability indexes in Texas and the nation. Houses have never been more affordable, if you have a job.”

(Image credit:

Housing Market Improves; Policy Challenges Await

August 13th, 2013 Comments off

Housing affordability slipped nationwide as home prices in recovering markets rose during the second quarter, according to the National Association of Home Builders (NAHB) Wells Fargo Housing Opportunity Index (HOI). Of all new and existing homes sold in the first quarter of 2013, 73.7 percent were affordable to families earning the U. S. median income of $64,400. In the second quarter that ended in June, 2013, that number had dropped to 69.3 percent, as MHPronews has learned. Says NAHB Chief Economist David Crowe, “Rising home prices signal the improving health in housing markets, and the median price of all new and existing U.S. homes sold in this year’s second quarter, at $202,000, was well ahead of the second quarter 2012 median price of $185,000. Together with rising mortgage rates, this contributed to affordability slipping to the lowest level in more than four years. Such movement would be less concerning were it not for ongoing discussions regarding potential changes to the mortgage interest deduction and federal support for the secondary mortgage market, both of which play enormous roles in keeping homeownership affordable.”

(Photo credit: Paul Sakuma/Associated Press)