New research spotlights the gaps and differences between the various generations, and how manufactured housing could potentially tap into those opportunities.
“Many desire to move from renting to owning, but often struggle to find that a real possibility in the current site-built market. The manufactured housing industry can offer a solution to that problem,” said millennial Lindsey Bostick, to our sister publication MHLivingNews.
In 2017, over half of the individuals and families looking to purchase a home will be first-time home buyers – and of that 52 percent, roughly 61 percent will be under the age of 35.
Unfortunately, the slowly recovering economy, stagnant wages, and rising home prices have forced too many people to believe that buying a home is out of reach.
Millennials have an average annual income of $40,581. That’s 56 percent ($10,090) less than the baby boomers before them were making at the same point in life.
That, say some experts that are not tuned into manufactured housing, has left many unable to save enough for a down payment on a traditional home as the market prices for new and existing homes continue to rise. What those housing advocates miss is profiled in a report, linked here.
“Today’s manufactured homes can look and live like a conventional, site-built house, and can be half the price of new construction. Additionally, many manufactured homes are Energy Star rated, so they are more efficient than older, existing homes,” the university-graduated Bostick said.
Manufactured housing presents a unique opportunity for millennials looking to buy a home – yet many don’t consider the option due to outdated information being spread by mainstream media as fact.
A recent Daily Business News article took a look at another study, which found that even renters are being priced out of their homes, making the need for affordable housing all the more immediate.
One of the largest populations to look towards manufactured housing is retirees – who according to the U.S. Census Bureau – are the population with the lowest income with $33,800 in annual income.
Things Are Not Always How They Appear At First Glance
However, due to underreporting of incomes that is the result of not counting essential revenue streams – such as retirement accounts and pensions – boomers may be doing better than was thought.
“The median U.S. household 65 or older earned $44,400 in 2012, those data show, a figure 30 percent higher than the median given in the census’s Current Population Survey from that year.”
By adjusting the data provided by the U.S. Census Bureau with information provided by administrative income records, researchers found there was a more than $10,000 difference between what was reported to the Census Bureau through surveys, and what the true average annual income for retirees (age 65 and older) is, per Newsmax.
This is also seen by those who work in the manufactured home industry. People of all ages and income levels – including well off retirees – in thousands of cases every month decide to go with a more affordable housing option.
“The median wealth of Americans 62 and older leapt 40 percent in just a generation, a St. Louis Federal Reserve analysis found—but the same time, from 1989 to 2013, the typical net worth of younger families plunged, by 31 percent for the middle-aged and by 28 percent for families younger than 40.”
Many of these facts dovetail with manufactured home lender research on MHProNews’ August 2017 featured articles and reports, see that fast-paced lender’s video seminar, linked here.
The income gap between millennials and retirees is growing. The prices of traditional housing continues to creep higher and higher. Manufactured housing offers – as savvy professionals know – an opportunity for people of all incomes to save on housing costs, and still become a homeowner. # # (News.)
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Submitted by Julia Granowicz to Daily Business News on MHProNews.