Headwinds in Site-Built Housing Market are Potential Tailwinds for Manufactured Housing
A slowdown in home sales has also impacted manufactured housing. However, the growing manufactured home industry is better positioned to react to consumer demand vs. the site-built housing market. Consider the following:
Headwinds in the site-built housing market are potential tailwinds for manufactured homes, as the competitive pricing and speed at which manufactured homes can be built. The average cost of a HUD Code home costs $127,300 which is well below the pricing of traditional site-built homes. For example: The average sales price of a pre-owned site-built home (nationwide) is $435,000, according to Realtor.com. Redfin says the median price at $376,000.
Furthermore, the industry will likely benefit from government initiatives to improve the growing housing shortage issues.
High inflation and all aspects of cost of living in cities and states across the country is resulting in an ever increasing potential market for manufactured housing. According to a Redfin survey from a couple of years ago tracked migration from Los Angeles to out of state definitions. Destinations as percent of origin leavers. Metro areas only.
Migration from Los Angeles to – Phoenix, AZ. 8.2% – Las Vegas, NV. 6.5% – Seattle, WA. 4.44% – Dallas, Texas 4.0% – Portland OR. 2.6% – Houston, Texas 4.0% – New York, N Y 2.0% – Nashville, TN. 1.9% – Washington, DC. 1.7% – Atlanta, GA 1.7%.
MISCELLANEOUS MANUFACTURED HOMES INFO BY THE NUMBERS
FLORIDA
There are about 850,000 manufactured and mobile homes in the state of Florida, according to the census Bureau, nearly 10% of the total supply of homes.
More than 600,000 homes predate 1994 HUD standards on manufactured homes in Florida, requiring improvements to withstand hurricane-force winds. In fact, a University of Florida study found not one manufactured home built after 1994 was destroyed by four hurricanes that struck Florida in 2004.
Only 1,732 manufactured and mobile homes in Florida carry flood insurance according to the federal Office of Emergency Management.
Other Manufactured Home Stats.
More than 21 million people live in approximately 8.2 million manufactured/mobile homes. MHI
More than 43% of manufactured/mobile homes rent the land in manufactured home communities.
As of January 2023 – Freddie Mac under Duty to Serve has provided more than $5.4 billion to finance 40,000 manufactured homes.
