MFH News and Views: Housing Crisis! Lack Of Stick-Built Supply Spurs Further Production In Manufactured Housing Units
It’s Monday, June 27, 2016. Housing supply lags behind need, spurring further production in today’s quality built manufactured / prefabricated homes.
Have you noticed the rapidly dwindling real estate inventory in your neighborhood recently? Have you ever wondered how you might end the vicious cycle of paying someone else’s mortgage and calling it “Rent,” by entering the home buying market? The following two reports should clearly demonstrate that today’s modern new manufactured home is an ideal solution, at least in part, to America’s widening affordable housing crisis.
Raising the eyebrows of more than a few of today’s homebuyers, the first report details the serious lack of new starts, needed to keep pace with the current demand of today’s homebuyers. On the optimistic side of the aisle; the second report indicates that manufactured home production continues on a long-running upward trend.
Those are two of the more interesting industry-specific headlines from last week, let’s do a little “Home Inspection” on those stories and see if there are any defects.
Panicking would-be buyers from coast-to-coast, current housing supply below demand – Causing more the little consternation from California to New York, 2015 had a decline of 430,000 new housing units nationwide, with only 620,000 new housing units hitting the market. The overall net effect of this shortage being a drastic increase in the cost of rent, according to MHReport. Providing a glimmer of hope for those saving up for their first home, the report also noted that historically low-interest rates on 30-year mortgages are currently available for first-time homebuyers. Which ties in nicely to the next story.
Manufactured home production jumps 9.9% for April, on a year-over-year basis – Producing just over 6,689 HUD Code manufactured built homes during April 2016, the manufactured housing industry has currently produced a total of 25,790 homes, representing a monumental 20.1% increase over last year’s production. During April 2015, the manufactured housing industry produced a total of 6085 units and built a total of 21,459 HUD Code homes by April, according to MHMarkingting Daily Business News. Doing what traditional stick-built homes
can’t won’t, the manufactured housing industry has been trying to provide a fiscally responsible option for today’s homebuyers. But there are obstacles….
Potential Defect: As far as MFH is concerned, “supply” is not the problem. The manufactured housing industry has the capacity and the capability to produce thousands more affordable quality built homes per month, that hard working Americans desire and can afford. So why isn’t that happening?
The U.S. government, bureaucrats, regulators, and politicians have steadfastly refused to allow the manufactured home industry access to financing equal to that available for traditional site built homes … supposedly in the interest of consumer protection.