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Posts Tagged ‘housing costs’

Housing Costs Skyrocket over 30 Years

March 30th, 2015 Comments off

annaul_household_expenditures_1984_2013__gov_t_figures_repro_by_townhallMHProNews has learned from townhall.finance that based on the U. S. government’s data, from 1984 to 2013, Americans have increased their household share of annual expenditures on housing, life insurance, pensions, education, health care and charitable contributions. Meanwhile, the per household share spent on transportation, apparel, food and alcoholic beverages, other products and services, and entertainment has declined.

According to the figures, the Average Annual Expenditures per Consumer Unit for housing has risen from just under $7,000 per year to just over $17,000 per year, the highest overall increase of all annual household expenditures. The case for affordable manufactured housing based on actual figures from the U. S. government could hardly be stronger. ##

(Graphic credit: townhall–statistics from Bureau of Labor and Census Bureau)

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

Housing Costs up 14 Percent since 1983

October 30th, 2013 Comments off

While the cost of manufactured goods has declined in the last 30 years, some significantly, the price of some services has skyrocketed. TV sets have fallen 98 percent, clothing 46 percent and toys have dropped 78 percent, due mostly to automation and supply chain management, as manufacturing goes through what agriculture did at the beginning of the 20th century with tractors and harvesters replacing human labor, lowering the cost of food. Meanwhile, college tuition has spiked 227 percent since 1983, a hospital stay will cost 197 percent more, and prescription medicines are up 89 percent. Housing costs have risen 14 percent, according to what CNNMoney informs MHProNews. While manufacturing costs will likely continue to fall given 3D printing and other technologies, it is tough to automate a doctor’s appointment or a college class.

(Image credit: HousingWire)

Affordable Rentals Rare in Rural America

August 14th, 2013 Comments off

Rapoza Associations reports nearly 30 percent of all rural households, which covers some 7.3 million families, are either unaffordable, overcrowded or substandard. Over 47 percent of all rural households are spending more than 30 percent of the their income on rent, which classifies them as cost-burdened; and almost 50 percent of those households pay over 50 percent of their income on housing costs. While costs related to housing are typically less in rural areas, rates of poverty are more than the national average. HousingWire reports rural renters have median incomes of $25,833, 35 percent below that of the average rural resident and 48 percent less than the national median income. In addition, MHProNews has learned 96 of the country’s poorest counties are in rural communities.

(Photo credit: ruralpovertyareas)

Fannie Mae: Manufactured Housing has Challenges to Overcome

June 27th, 2013 Comments off

In its latest Housing Insights report, Fannie Mae notes that while overall home construction fell by 70 percent between 2006 and 2011, manufactured housing (MH) began declining in 1998, falling nearly 90 percent. In 2012 MH accounted for 7.4 percent of total home construction, a substantial drop from 20.2 percent in 1998. The report says, “Given manufactured housing’s modest share of the total housing stock, the decline in manufactured home production might not seem important. However, manufactured homes account for an outsized share of low-cost housing, particularly among owner-occupants. Whereas manufactured homes account for approximately 7 percent of all owner-occupied homes, they represent 16 percent of owner-occupied units with monthly housing costs of less than $500.” As inman.com informs MHProNews, the average price per square foot for a manufactured home in 2012 was $42, less than half the square foot cost of a new site-built, single-family home. The report cites several barriers the industry must overcome, including limited conventional financing options due to titling of most manufactured homes as personal property, an underdeveloped secondary market for manufactured home loans, and pending financial regulations that could further curtail manufactured home lending.

(Photo credit: Jonathan Ernst/Reuters–Fannie Mae headquarters)

Partners Prowling for Workforce Housing

May 10th, 2013 Comments off

According to CPExecutive, Canyon Capital Realty Advisors and Citi are partnering in a venture to acquire modular workforce housing in underserved areas across the country. Backed by $800 million, the Canyon Multifamily Impact Fund is targeting properties priced from $20 million to $90 million. “Amid increased housing costs across the United States, the need for quality workforce housing near employment centers is higher than ever,” said Dan Millman, principal at Canyon Capital. The fund will manage the properties. Harvard University’s Joint Center for Housing Studies informs MHProNews in 2001 there was a shortage of 2.4 million affordable units for low-income residents, but that number more than doubled to a 5.1 million unit shortage in 2010.

(Photo credit: PRWeb–Atco’s Pirate Cove Lodge–modular workforce housing in northern Canada)

Falling Income may Stall Recovery

May 9th, 2013 Comments off

According to cbsnews, a report based on recent data from the Census Bureau American Community Survey states that the percentage of renters paying over 50 percent of their income increased from 22.8 percent to 26.4 percent. The foreclosure crisis, falling home prices, and tighter credit drove former homeowners into rentals and simultaneously prevented renters from moving on to homeownership, further increasing the demand for rentals and driving up costs. Renting expenses rose six percent from 2008 to 2011, while income of those renting dropped 3.2 percent. Although homeowners experienced a drop of 3.2 percent in housing costs, income fell 4.2 percent, increasing the burden of homeownership. Co-author of the report, Janet Viveiros says “We really need to be thinking about long-term solutions on the ownership side and making sure that renters have access to enough affordable communities.” Housing affordability affects the amount of money spent on food, healthcare, and other needs and wants that feed the economy, as MHProNews understands. Bottom line: The lack of job and income growth will keep the economic recovery in low gear.

(Image credit: Forbes)

Housing Costs to Grow for Seniors on Fixed Incomes

August 13th, 2012 Comments off

leadingage says while the Joint Center for Housing Studies at Harvard University predicts the housing recovery will be led by single-family home construction, the center also foresees the financial burden that will accompany the growing number of seniors who will need assisted housing and supportive services. The number of cost-burdened older homeowners rose by a third between 2001 and 2010, from 3.1 million to 4.1 million, a percentage that is expected to increase over the next 20 years as the baby boomers age. Due to the recession, 1.9% of owner occupants aged 65-74 in 2011 had changed residences during the prior year, a drop from the 3.3% rate in 2007. MHProNews has leaned nearly one-fifth of older homeowners are thought to be cost-burdened by their homes, paying more than half their income for the homes, which makes refinancing a more difficult challenge.

(photo credit: HUD Government)

Texas Needs More Modular Man Camps

August 7th, 2012 Comments off

BloombergBusinessWeek says Midland and Odessa, Texas sit on top of the Permian Basin, a rich store of petroleum which last year produced 280 million barrels of oil, about 14% of the U.S. output. Compared to the 100 active drilling rigs in 2009 there are 500 this year. As MHProNews has learned, oil booms bring demand for much in the way of support goods and services, including housing. Goliath Industries LLC is building a modular, 52-acre man camp to house 1,000 workers set to open this fall in Odessa, offering private rooms with baths, meals, entertainment, and exercise facilities; and four other companies intend to open temporary modular housing including D.R.Horton Inc., the nation’s most prolific home builder. Odessa’s median home price rose 8.6% from June 2011 to June 2012. Demand has pushed wait time for new home construction to eight to 12 months, as some school officials ask current employees to rent rooms to new teachers until adequate housing is available. The flip side: Rising housing costs are straining the resources of people on fixed incomes, resulting in a run on food supplies at local pantries.

(Image credit: GlobalRegina–modular man camp)

Study Predicts the Rise of Prefab Globally

March 5th, 2012 Comments off

Global Industry Analysts, Inc. estimates the global prefabricated housing market will hit 829,000 units by 2017. DigitalJournal tells MHProNews.com the U.S. and UK have the majority share of the market, but Australia and New Zealand are the pioneers in the Asian market, although Japan, China, Taiwan and Korea have burgeoning factory-built housing industries. In the U.S. manufactured housing is the most competitive in the prefabricated housing market sector, and accounts for about ten percent of all new single-family homes. The study states the appeal of low housing costs is an attraction for singles, young married couples, and retirees and will translate into growing demand for factory-built homes. The report notes the coming green identity with modular housing in particular: “The segment of modular homes is moving towards a greener identity with several super housing models boasting of low-carbon footprints frequently emerging in the market. The energy-efficient, environment friendly homes are changing the relatively down market image of the prefab housing type, as consumers increasingly place in high esteem industries that aim at reducing wastage and inefficiency.”

(Graphic credit: Wikipedia)