The Manufactured Housing Industry is poised for renewed greatness, but it’s not without challenges. In some ways, those challenges – such as image – are opportunities in disguise for the forward thinking professionals, owners, current-and-prospective investors. Our newest Inside MH video interview with Scott Roberts of Roberts Resorts and Communities has already drawn praise from some of the top people in our industry. No less important, it’s a magnet for MH pros/viewers/researchers/enthusiasts eager for new insights from a successful MHC leader.
MHProNews has provided a smorgasbord of research, statistics and information in June 2015’s featured articles focusing on The State of the Manufactured Housing Industry. Among the top reads? Articles focused on the ‘terminology’ issue!
Let’s lend a pictorial hand to those who are confused or want more clarity and color on this “what’s the proper name” for today’s MH topic. The first two photos – of a true “trailer house” and a “mobile home” – are courtesy of Bob Vahsholtz, long time industry veteran, now an author enjoying the retirement years.
Remember the movie The Long, Long, Trailer with Lucy and Desi?
As shown in the photo above, in the 1950’s, a ‘trailer house’ could be pulled behind a car.
1960’s era mobile home is shown in the photo above. These were larger than a trailer house,
but still relatively easy (“mobile”) to move.
Compare the ‘trailer’ and the ‘mobile home’ above to contemporary single section manufactured homes. A common size 16’x80′ single sectional home may weigh some 30,000 pounds +/- and need specialized equipment to move. Multi-sectionals may be 50,000 to 70,000+ pounds. Such homes are moved to a home buyers’ site and permanently installed. They are not mobile, wheels and axels are routinely removed! There is also a code and quality difference, thus the legal and proper name “manufactured home” built by the manufactured housing industry. As we like to inform readers, there have been no mobile homes built in the U.S. since June 15, 1976, the day that the HUD Code for Manufactured Housing Construction and Safety Standards went into effect.
The pair of single sectional interior photos are courtesy of Sunshine Homes.
They feature residential style finished drywall and numerous upgrades, retailing in the mid 40s+.
You can learn some interesting insights about these homes in The Condo Killer video, linked here.
Then there are multi-sectional manufactured homes, commonly called ‘double wides’ but may in fact be three sections, or ‘triple wide.’
The home above is a smaller version of the tastefully appointed Tidmore Residence, see that Inside MH Video tour.
Whatever the intent of OZY Media in their terribly named and problematically reported “Trailer House Nation” series, or motives behind The Daily Yonder in their flawed article, “The Hidden High Costs of Mobile Homes,” or The Seattle Times/Center for Public Integrity/New York Times (et al), these reveal either ignorance or malice, take your pick. Whatever the motivation, the solution is industry corrections and positive engagement!
Education is a key to changing the image and thus the value of manufactured housing today. Note the choice of words, not just ‘perceived value,’ which is certainly important. But the actual value of homes and investments as well, because the one feeds the other.
While financing is crucial to any big ticket sale that is being done in volume, clearly when demand, desire and dollars (cash or credit) combine, the value rises. We’ll look at the link between those items and how they can combine to create more appreciation among manufactured home owners and how that benefits industry businesses, public officials and investors in a future report.
Are these thoughts theory, just nice words? Hardly.
Randy Rowe and company at Green Courte Partners made the decision to model for the land lease manufactured home community (MHC) industry the value of selecting the right terminology, combined with positive, customer/resident friendly business practices. The reward for doing so was quite real, to the tune of $1.32 billion dollars when Sun Communities acquired their MHCommunities (MHCs) last year.
Yes, the correct Terminology Matters!
So with those thoughts in mind, here is the link to Lea Anne Somervielle and Victor Frost’s respective popular columns on the terminology (what’s in a name) topic.
In the light of the above facts, if you haven’t already done so, please take a look now at the Scott Roberts Inside MH video interview.
While the Sun acquisition were of larger sized and nicer properties, that same principle can also be done in smaller locations as well. In fact, isn’t it self-evident that you can upgrade/makeover a 50 site community faster than a 500 site one? We’ll look at that topic too in days to come.
What’s in a name?
While a rose would still smell as sweet by any other name, the value of using the proper terminology – not a ‘trailer,’ or a ‘mobile home’ – rather a manufactured home, is important as these are all clearly different products. No informed person would seriously refer to an old crank phone by calling it a smart phone. No informed media or public official should misuse terminology about manufactured homes either. Ideally, we-who-see must enlighten and inform others, home owners, professionals and the public at large.
Media should be informed by professionals and associations of the difference every time one sees an errant use of the wrong name. It will impact sales and value, for good or ill.
In the consulting and training arms or our operation, we teach professionals how to attract the cash and more credit worthy customer, without ignoring the most entry level or affordable sides of the industry. Part of this is done through a form of education. The result? One client, for example, reports that out of every 3 homes sold, two are mid-to-upscale models, while the one is an entry level style home. The right education, marketing and image pays. Everyone benefits, including the home owner.
Let’s repeat and underscore that last point. Marketing, Education and Image pays. It pays for the consumer and it pays for the professional too.
Want to deepen the understanding of the industry, among professionals or those researching our sector? Here are some links.
> State of the Manufactured Housing Industry
> A Nation of Renters or Home Buyers?
> Examples of successful MH outreaches with real estate agents and the value for each party involved.
> The latest manufactured housing production statistics, provided by MHARR.
On the all-important finance and regulatory topics, let’s share this article with insights from U.S. Senator Joe Donnelly, UMH President Sam Landy and Triad Financial’s Chairman, Don Glisson, Jr.
Researchers, investors, media and industry pros ought to share these facts with their peers. The more we broaden the proper understanding of modern manufactured homes, the more we protect and promote the home owners and business persons value and demand for contemporary factory-crafted homes. Everyone can benefit. ##
