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Bloomberg – Manufactured Home Industry is the Solution to the Affordable Housing Crisis

September 23rd, 2016 Comments off
Sunshine_Homes__credit

The single section home is featured in a video on MHLivingNews. The Energy Star ™ would often sell in the low 50s, has 3 bedroom, 2 baths and is thus lower in cost than what the Bloomberg story shows as the average price. Image, Sunshine Homes, Red Bay, AL.

An article in Bloomberg makes the case that manufactured homes – what they refered to as mobile homes (sic), are an obvious solution to the affordable housing crisis.

It starts with a simple question: Why Aren’t We Building More Mobile Homes?” While their terminology isn’t exactly accurate – and they admit that mobile homes aren’t very mobile – their message is clear.  The manufactured home industry provides real hope for the American Dream of home ownership at a reasonable price.

Bloomberg’s article shares metrics that show people in West Virginia accepted delivery of more than 1,000 manufactured homes last year, while 2,000 conventional builders secured permits to for new single family homes. This means that 1 in 3 homes added in the state last year was a manufactured home.

The more facts one sees, the more apparent the solution becomes, as MH professionals know.

The average sales price of a manufactured home was $67,800 in April, 2016. By contrast, the average sales price for a site-built home in the same month was  $380,000. While the manufactured home was priced without land, even factoring land cost in creates an amazing savings.

According the stats in the Bloomberg article, 75% of manufactured homes residents have household incomes of less than $40,000 per year.

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Bloomberg means, HUD Code Manufacturd Homes, not mobile homes, but the stats are useful. Credit, Bloomberg.

While the graphic shown above cites that most of the manufactured homes are highly concentrated in southern states (where the bulk of sales have been,) there are over 500,000 manufactured homes in California, which has pushed aggressive regulation that continues to affect the ability to own a home.

While those of us in the industry can see growth, it’s not always as clear to those outside of manufactured housing, due to long insufficiently addressed lingering perceptions.

solvingamericasaffordablehousingcrisissenbobcorkerhudsecretaryjuliancastrorichardcordraycfpbsamlandyumh-mhlivingnews

Bloomberg cites age, loose lending practices and the fact the manufactured home sales peaked in the mid 90’s – when they made up 1 in 3 homes sold nationwide – among reasons they think MH loans started to go bad, flooding the market with foreclosures and thus limiting demand.

While MH is years into its recovery, the data also shows that manufactured home sales have been slower to recover from the last recession than other forms of housing.

Bloomberg points to Doug Ryan, director of affordable home ownership at the Corporation for Enterprise Development (CFED – a Washington-based nonprofit group,) who cites advantages, and challenges, that the industry faces.

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Doug Ryan, CFED.

You can put them anywhere you have the land, said Ryan. As the Daily Business News recently reported, CFED’s Ryan routinely promotes manufactured homes as an important option in the affordable housing crisis.

What you’re up against is the stigma. You’d have people coming to the planning meetings and saying that you’re killing their home value.” The Daily Business News has covered this scenario playing out in Austin recently.

The Bloomberg piece ends with something for the industry to think about:

Maybe it’s time for another rebrand. The homes vary in size and price, but they’re generally smaller than the typical site-built home. Instead of “manufactured,” why not borrow the name for another kind of often prefabricated abode: the tiny house.”

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Narrative control, it seems, is everything in the fight for the American dream.  As regular readers know, MHProNews and MHLivingNews, we’ve extensively covered the many ways that the MH industry is the solution to the housing affordability crisis in the U.S.

Underscoring Bloomberg’s tip to the MH Industry?  Rebrand them as tiny houses, which are hot. ##

(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, MHProNews

U. S. Housing and Economic Progress is Making Haste Slowly

May 12th, 2016 Comments off

home sales rising  housing wire com  creditSan Jose, California led 119 of the 340 metro housing markets nationwide in returning to or exceeding their last normal levels of economic and housing activity in Q1 2016. The markets are gauged by measuring the averages of housing permits, price and employment levels for the past 12 months, and divide each by their annual average over the last period of normal growth.

As pleasantonweekly tells MHProNews, the National Association of Home Builders/First American Leading Markets Index (LMI) indicates that 45 markets experienced a year-over-year net gain. The index’s score hit .95, which means the housing market is operating at 95 percent of normal housing and economic activity.

Housing markets continue to recover gradually, edging along by a firming economy, solid job creation and low mortgage interest rates,” said NAHB Chairman Ed Brady. “We expect the housing sector to improve at a slow, but steady pace throughout the year.” At 49 percent of normal activity, single-family permits are pulling done the numbers.

More than 80% of all metros saw their Leading Markets Index increase or hold steady over the quarter, an important sign that the housing market is heading in the right direction,” said Kurt Pfotenhauer, vice chairman of First American Title Insurance Company.

The years 2000-2003 were used as the last normal period for single-family permits and home prices, and 2007 as the base for the employment figures.

The remainder f the top ten: Baton Rouge, LA, Austin, TX, Honolulu and Houston. The last five are Oklahoma City, Los Angeles, Nashville, Charleston, SC and Salt Lake City. ##

(Image credit: housingwire–housing market slowly gaining)

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

Improving Housing Market Hits Highest Level

September 9th, 2013 Comments off

The National Association of Home Builders (NAHB) reports 44 markets have been added to the First American Improving Markets Index (IMI) for Sept., bringing the number to 291, the highest number since the index began two years ago. Based on improvement in housing permits, employment and home prices for at least six months, only five markets were dropped from the list in Sept. “The dramatic increase in markets qualifying for the IMI in September was partly due to a recent improvement in the way that Freddie Mac measures home prices, which resulted in stronger gains than previously reported,” noted NAHB Chief Economist David Crowe. “Even so, the broadened list of metros on the IMI continues to demonstrate the slow but steady gains that individual housing markets are making to bolster the national outlook.” As MHProNews has learned, every state has at least one county that is part of an improving market.

(Image credit: globest.com)

Improving Markets Index Slips Slightly

August 6th, 2013 Comments off

The National Association of Home Builders (NAHB)/First American Improving Markets Index (IMI) for August lost eight markets from the listing in July, dropping to 247 metropolitan areas that show improvement, but three times the number included one year-ago August. The index measures job growth, home price appreciation and single-family housing permit growth, areas that must show improvement for six consecutive months before a metro area can be included on the list. NAHB Chairman Rick Judson says, “In all, 244 metros that were listed as improving in July retained that status in August, and this is an encouraging sign of the continuing housing recovery.” As MHProNews has learned, nearly 70 percent of all U. S. metro areas are represented on the list which includes 49 of the states and the District of Columbia.

(Photo credit: mattheafey)

Housing Market Slips Month-over-Month, but Flourishes Year-over-Year

July 8th, 2013 Comments off

A total of 255 metropolitan housing markets across 49 states and the District of Columbia have remained on the National Association of Home Builders/First American Improving Markets Index (IMI) for July, down from the 263 areas that ranked in June, but over three times the number listed in July 2012. Based on continued improvements in housing permits, employment and house prices for six consecutive months, NAHB Chairman Rick Judson says, “This is the sixth straight month in which at least 70 percent of all U.S. metros have qualified for the Improving Markets Index. The relative stability of the IMI is representative of the broad recovery underway, which is much more extensive than what we were looking at one year ago.” NAHB’s Chief Economist David Crowe expects expansion of the housing market to continue through the year despite shortages of labor, lots, credit and some building materials, as MHProNews has learned.

(Image credit: HousingWire)

Housing Markets Improving

June 6th, 2013 Comments off

According to the National Association Home Builders (NAHB)/First American Improving Markets Index (IMI), five U. S. housing markets have been added to the list of those returning to health in June. Based on housing permits, employment and house prices that have been improving for six months, “This is the fifth consecutive month in which the IMI has designated more than 70 percent of U.S. metros as improving,” observed NAHB Chairman Rick Judson. As MHProNews has learned, twenty-nine markets were added to the IMI while 24 markets fell away from the list. NAHB Chief Economist David Crowe says, “The number of improving markets is now more than three times what it was in June 2012.”

(Photo credit: knoxnews)

New Home Growth Slips

May 7th, 2013 Comments off

The National Association of Home Builders (NAHB)/First American Improving Markets Index (IMI) reports the number of U. S. housing markets experiencing sustained growth fell from 273 in April to 258 in May, representing all 50 states and the District of Columbia. The IMI measurement is based on areas that show gains in housing permits, employment and house prices for at least six consecutive months. MHProNews understands that while the housing picture is better than last year at this time, NAHB Chairman Rick Judson says, “Our industry’s progress on the road to recovery is being slowed by rising challenges related to the availability of credit, building materials, labor and lots for development.”

(Photo credit: Wikipedia)

Improving Markets Index Holding Steady

April 5th, 2013 Comments off

The National Association of Home Builders/First American Improving Markets Index (IMI) informs MHProNews the list of improving housing markets remains virtually unchanged from last month. Five new markets showed improvements in employment, housing permits and home prices for at least six months, while six fell from the ratings. NAHB Chief Economist David Crowe says following seven months of growth, “the number of markets is holding steady at a high level.” Kurt Pfotenhauer, vice chairman of First American Title Insurance Company, notes, “With 75 percent of the country seeing measurable improvement in housing market conditions, the outlook is definitely brightening for local economies this spring.”

(Graphic credit: Photobucket–flatline)

15 More Housing Markets on the Upswing

March 21st, 2013 Comments off

The National Association of Home Builders (NAHB)/First American Improving Markets Index (IMI) for March marks the second consecutive month in which every state is represented on the improving markets list by at least one metropolitan market. The IMI gauges increases in employment, housing permits, and housing prices for six consecutive months for each metro area before it can be included. The 274 areas currently on the list include the addition of net 15 metro areas since Feb., as MHProNews has learned. NAHB Chief Economist David Crowe says, “With just over 75 percent of the 361 metros covered by the IMI now seen as improving, the housing market is on considerably more solid footing than it was at this time last year. While we expect this positive momentum to continue, it’s important to understand that many markets are just beginning the recovery process, and that numerous issues – from credit availability to the rising cost of building materials and emerging lot shortages – are slowing the pace of that advancement.”

(Photo credit: Eric Hylden/prairiebizmagazine)

NAHB: Housing Market Continues Upward

February 6th, 2013 Comments off

The National Association of Home Builders (NAHB)/First American Improving Markets Index (IMI) reports the number of improving housing markets grew in Feb. to 259, up from 242 markets in Jan., and now includes all 50 states and the District of Columbia. The IMI measures changes in housing permits, employment, and house prices for six consecutive months. “The fact that all 50 states now have at least one metro on the improving list shows that the housing recovery has substantial momentum and continues to expand from one market to the next,” said 2013 NAHB Chairman Rick Judson, as MHProNews has learned. “Just over 70 percent of the 361 metros covered by the IMI are listed as improving this month,” said NAHB Chief Economist David Crowe. “That’s a far cry from when we initiated this index with just 12 improving metros in September of 2011 for the purpose of highlighting places that didn’t fit the mold of the national headlines.”

(Photo credit: knoxnews)