Growing Manufactured Housing Industry is Positioned to Address the Nation’s Affordable Housing Needs
Today, homeownership is frequently cited as an example of attaining the American Dream. It is a symbol of financial success and independence, and it means an ability to control one’s own dwelling place instead of the whims of a landlord.
For many, the realization of that unique element of the American Dream is becoming illusive in the traditional sense, (site-built homes), as the affordability gap widens between hardworking low to middle income families and those in the upper range of wage owners.
There is a form of housing that bridges that affordability gap and is “everything a home should be” – today’s modern manufactured home – which is generally equal and often superior, in every respect to a traditional site-built home and will have a cost up to 50% less per square foot than a comparably size custom home constructed on site.
It is conceivable that within the not-so distant future a majority of America’s new housing stock will be built in a factory. That being said, the burgeoning manufactured housing industry offers an opportunity for families to realize high quality, value oriented homeownership.
Headwinds in the home building industry are potential tailwinds for manufactured housing, as the competitive pricing and speed at which manufactured homes can be built. The average cost of a HUD Code manufactured home costs $127,300, which is well below the pricing of traditional site-built homes. Furthermore, the industry will likely benefit from government initiatives to improve the growing housing shortage issues.
The affordability of manufactured homes is due to the efficiency of the factory building process, utilizing the same building materials as site-built homes. The controlled environment and assembly line techniques remove many of the problems during traditional on-site construction, such as weather, theft, vandalism,etc.
The following are 5 of the many manufactured home attributes versus traditional homes built on site:
(1) Manufactured housing is the only form of home regulated by a federal building code which includes health, safety, energy efficiency and durability.
(2) Manufactured homes/modular homes can open the door to quality homeownership for millions of families; they can appreciate in value and be a long-term affordable solution for families and communities across the country.
(3) Greater flexibility in the construction process allows for customization to meet a homebuyer lifestyle and needs, including enhanced energy efficiency such as Energy Star-labeled homes for substantial savings in many aspects if owning and operating a home, and an array of amenities, decor features and appliances.
(4) Technological advances allow manufactured home/modular home builders to offer a variety of architectural styles and finishes that will allow a manufactured home to blend smoothly into most any neighborhood.
(5) Multiple manufactured home/modular home financing choices are available, whether the home is placed on private property or within a land-lease community. A manufactured home affixed to real estate will qualify for mortgage financing similar to a traditional site-built home, including FHA and Va. Because the total consideration is lower, the required down payment requirement will be proportionately less.
