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Amidst Controversy, CoreLogic’s Special Report on Investor Home Buying Trends

AmidstControversyRalphMcLaughlinCoreLogicSpecialReportInvestorHomeBuyingTrendsDailyBusinessNewsMHProNews

What follows is a scenario that sheds light on affordable housing – and thus impacts manufactured home professionals and the home buying public – in several ways.

There may be absolutely no connection to the fact that CoreLogic, which received a letter related to an antitrust probe by the Department of Justice, per Inman and the Real Deal, has just published a new special report on investor home buying trends.

Posted on the CoreLogic blog on 6.20.2019 by the firm’s Deputy Chief Economist, Ralph McLaughlin, is a report styled a “deep dive into investor homebuying activity” – some 1250 words plus graphics – for the year 2018. DSNews and Newsmax are among the sources that have reported on this study.

RalphMcLaughlinPhotoDeputyChiefEconomistCoreLogicDailyBusinessNewsMHProNews

 

McLaughlin says that “By the end of 2018, the investment rate in the U.S. housing market reached 11.3% – the highest rate since CoreLogic started tracking these data in 1999. The investment purchase rate in 2017 was the second highest on record at 11%, which was above the investor buying fury of 2012 – 2014 when purchase rates reached 10.3% – 10.9%.”

USInvestorHomebuyingRatesCoreLogicGraphicChartDataDailyBusinessNewsMProNews
To begin to properly understand the manufactured home industry, one must grasp the larger housing market, macrotrends, and the elephants in the room.

Smaller investors are responsible for increasing investor homebuying activity. This is in sharp contrast to the rise in large institutional investors in the years following the recession,” per CoreLogic.These so-called “mom-and-pop” investors grew from 48% of all investor-purchased homes in 2013 to more than 60% in 2018. Large investors – those who purchased more than 101 homes – nearly doubled their activity between 2000 and 2013 but have pulled back since the foreclosure crisis and now sit at 15.8% of purchases. Medium-sized investors – those who purchased between 11 and 100 homes – have also seen their share steadily fall, from a peak of 30% in 2010 to 22.7% in 2018.”

CorelogicUShomebuyingRatesByInvestorSizeManufacturedHousingIndustryDailyBusinessNewsMHProNews
While purported data from the Manufactured Housing Institute has at times been arguably  tilted to favor certain member firms, there is no known claims against CoreLogic for rigging their data findings.

 

We also found investor purchase rates were much higher among starter-homes. The share of starter homes purchased by investors peaked at over one-in-five homes over the past two years, with a rate of 20.3% in both 2017 and 2018,” wrote McLaughlin.

ChartGraphicDataThreeCoreLogicUSInvestmentsByHomePriceCategoriesStarterMoveUpHighEndManufacturedHousingMHProNews

 

That factoid clearly has significance to manufactured home sellers, investors, and affordable housing professionals. More to the point, given the law of supply and demand, it is part of the reason why ‘starter homes’ are harder to come by for first-time and other affordable housing seekers.

CoreLogic, in their report linked here, also noted that “While there are several plausible explanations, we found investors are attracted to markets where rents are relatively high compared to purchase prices.”

That point coincides with issues that MHLivingNews and MHProNews have previously reported – spotlighted in part by the viral Seattle is Dying video, found in the analysis and report linked from the text-image box below.

Why is Seattle Dying? Affordable Housing, Misplaced Compassion, and Manufactured Homes – manufacturedhomelivingnews.com

In just over three weeks, this video below entitled ” Seattle is Dying ” by KOMO, a local ABC TV affiliate there, has broken 2.1 million views. It is an hour-long and compelling documentary that ends with hope based upon some promising solutions. But it first lays out one troubling fact and example after another.

A bottom-line takeaway from CoreLogic’s research? “…it’s a truism that homebuyers today are more likely to cross paths with investors during an open house than at any other time in the past two decades.” There full report is found linked here.

Hurdles, Headaches, and Challenging Opportunities

These facts and trends reflect problems and hurdles for millions. But it is also an opportunity in disguise for the industry and its professionals, if…

Affordable Housing Needed, Corporate Corruption, and Manufactured Homes – Time to Get Federal Officials Fully Involved? – manufacturedhomelivingnews.com

Imagine for the new few minutes that you are a detective trying to solve a mystery. Detectives look for clues and examine evidence. Investigators ought to be objective. Like a doctor seeking the cause for an ailment, there are tests, results, facts, and reason that should to be the drivers for solving any puzzle.

 

…but only if, the kinds of problematic behavior that has been previously outlined by MHProNews and our sister site, MHLivingNews, are avoided or managed. Two examples are linked above and below.

Bridging Gap$, Affordable Housing Solution Yields Higher Pay, More Wealth, But Corrupt, Rigged Billionaire’s Moat is Barrier – manufacturedhomelivingnews.com

America woke up today to division. But perhaps 75 percent (+/-) of the nation’s people could come together on a plan that demonstrably could do the following. Increase the U.S. Gross Domestic Product (GDP) by some $2 Trillion Annually, without new federal spending.

In a series of direct quotes in context, a document from 21st Mortgage signed by Tim Williams, and video recorded comments by Kevin Clayton, these all line up to demonstrate how independent retailers, communities, and producers – among others – where purportedly harmed by action that could be deemed an antitrust violation. Why hasn’t Allen told his readers how that cost them money? https://www.manufacturedhomelivingnews.com/bridging-gap-affordable-housing-solution-yields-higher-pay-more-wealth-but-corrupt-rigged-billionaires-moat-is-barrier/

These facts and trends also reflect a need for public officials to act to enforce the law on enhanced preemption, the Duty to Serve manufactured housing, and other laws already on the books that could transition millions from renting into a life of greater opportunity and wealth-creation through home ownership.

See our most recent report, linked below the bylines and notices.

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That’s this today’s first episode of “News through the lens of manufactured homes, and factory-built housing,” © where “We Provide, You Decide.” ©. ## (News, fact-checks, analysis, commentary.)

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1) Marketing, Web, Video, Consulting, Recruiting and Training Resources

SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

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“We as a Nation Can Solve the Affordable Housing Crisis,” Says Secretary Ben Carson, Spotlighting Manufactured Homes, Other Emerging Housing Technologies – manufacturedhomelivingnews.com

” Let’s make sure people understand what’s available,” said HUD Secretary Ben Carson about affordable housing, as he spotlighted manufactured homes as a key part of the Innovations in Housing display on the National Mall in Washington, D.C. ” You can get one of these manufactured houses, for instance, for 30 percent less, and they are very, very resilient.

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MHARR Calls on HUD Secretary to End Discriminatory And Exclusionary Zoning of HUD-Regulated Manufactured Homes | Manufactured Housing Association Regulatory Reform

Washington, D.C., April 30, 2019 – The Manufactured Housing Association for Regulatory Reform (MHARR) in an April 24, 2019 communication to U.S. Department of Housing and Urban Development (HUD) Secretary, Ben Carson (copy attached), has called on the Department to federally preempt local zoning ordinances which discriminatorily exclude manufactured homes regulated by HUD pursuant to the National Manufactured Housing Construction and Safety Standards Act of 1974 and the Manufactured Housing Improvement Act of 2000.

MHARR Launches “Fighting Discriminatory Zoning Mandates” Manufactured Housing Project | Manufactured Housing Association Regulatory Reform

Washington, D.C., May 15, 2019 – With manufactured housing producers, retailers and communities offering their best homes (and related consumer protection) ever, and in light of the failure of the ostensible representation of the industry’s post-production sector to fully and effectively advance the marketing, consumer financing and, most importantly, the full acceptance of federally-regulated manufactured housing as the nation’s premiere source of non-subsidized affordable housing and homeownership, the Manufactured Housing Association for Regulatory Reform (MHARR) has launched a new project and initiative to fight selected, especially egregious instances of discriminatory and exclusionary zoning targeting manufactured housing and manufactured housing consumers.

 

 

 

 

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