Affordable Home Inventory Crisis – Manufactured Housing Center Stage?

Credit: NAHB.

New information from the National Association of Homebuilders (NAHB), shows that an elevation in home values, triggered by tight inventory conditions across all housing categories is contributing to growth in high priced home sales.

While this category grows, a more ominous sign is on the horizon.

According to Construction Dive, student debt, slow wage growth and high rents are making it difficult for younger buyers, who typically purchase lower-priced homes, to save enough for a down payment.

Additionally, information from Trulia shows that entry level housing inventory continues to contract, with supplies falling 8.7 percent in the first quarter of 2017, while the median list prices for homes as up 8.3 percent.

With existing homeowners appearing to be slower to move up to a larger home, and in turn opening up their smaller properties for first time homebuyers, some larger site built home companies are working to fill the inventory gap. Meritage, D.R. Horton and Toll Brothers have all announced entry-level home plans with smaller footprints and fewer amenities to help reduce the cost of building at such a low price-point.

According to the latest NAHB/Wells Fargo Housing Market Index, homebuilders remain optimistic for continued demand for single-family home construction, which has been trending up since the beginning of 2015.

The new Champion plant in Benton, KY. Credit: Woodworking Network.


Does Manufactured Housing Take Center Stage?

The Daily Business NewsMHProNews and MHLivingNews have covered the case for manufactured housing as a viable solution to hope for the American Dream of home ownership at a reasonable price extensively, including Bloomberg making a statement to the same effect.

The ability to significantly cut down on production time, provide a high quality product to federal standards, all at a lower price point serves as the ideal solution to inventory and housing challenges. The titans of business recognize the opportunity as well, as giants and independents alike are actually “doubling down” on the industry.

Sam Zell. Credit: WSJ.

ELS Chairman Sam Zell has been famously quoted as correcting misconceptions about the industry, saying during this interview, “Everyone calls them trailer parks. Pencil head, it’s not a trailer park.

For more on manufactured housing being the solution that’s hiding in plain sight, see MHProNews and MHLivingNews Publisher L.A. “Tony” Kovach’s insight into the opportunity linked here. ##


(Image credits are as shown above.)


RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews


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