In markets across the country, the effects of the affordable housing crisis are easy to find. In the Reno-Sparks area, local media reported just how bad the housing crunch has become. In that same market, local media has spotlighted a prominent manufactured home retailer for how business has become crazy busy.
Some bullets from the first video posted could be rounded off with these summary numbers:
- 3500 families are on federal housing assistance
- Another 2100 families are on a waiting list
- About 1000 are in homeless shelters
- Some 200 are homeless, without shelters
The video is insightful, in part, because it provides a sense of how such studies would often apply to local housing markets in an area near your location(s).
Now we may add the video interview in that was done at Craftsman Homes, Leo A. Poggione’s outfit. Poggione is the Secretary for the Executive Committee of the Manufactured Housing Institute (MHI).
It is not our intention to reveal any location-specific results. But if you read and watch the local media’s report, you would think that new homes are flying off the shelf. But a look at the June 2018 new home shipment data for IBTS tells a different story.
The first IBTS shipment data column below reflects statewide single section shipments. The next are multi-sectionals, the third are total shipments into NV for the month, and the last column reflects the total floors shipped.
There is little doubt that Craftsman or others in Nevada are doing better than a few years ago. But ‘better’ from the industry’s historic bottom, is that something to brag about? As our publisher recently said, with 20 years since our industry’s last peak, there are thousands of industry professionals who’ve never experienced a true boom.
What this story tells us are many things, that regular, detail-focused Daily Business News readers – and/or MHProNews client companies – already know. Namely, that the industry should be doing many times more sales than what it’s experiencing.
Per News 2 Reno…
“Over his 27 years in the business,” said John Potter for News 2, “Tim Richardson at Craftsman Homes in Sparks has seen his industry’s ups and downs. These days, it’s definitely up. As he told me, “Business is good John. Business…oh we’re swamped.”
“Tim and dealers like him are part of the comeback for manufactured homes,” wrote Potter, “deliveries of which have been on the rise since 2009…and are primed for more growth in the face of high, high prices for local site-built houses. Tim says home prices now in Reno “are crazy, and I really don’t know how people can afford them.””
“6 years of steady price gains have put owning a traditional house, out of reach of many Nevadans. And with affordable housing in such short supply, there aren’t many alternatives. Reno’s average price for a single family home is now $400,000.” Potter asks, “Tim’s price for a double wide? “You can get a multi-section home for right around $65,000. So your payment will be under $1,000 a month, which is less than renting an apartment.””
“There is a catch…you also need to get the land you need. Tim says, “We have land packages in the low $200’s for an 1800-2000 square foot house,” says Potter, who closed by saying, “Bottom line, the manufactured home business is growing…while houses here aren’t getting cheaper.”
All of that rings true. But investors and professionals with sharp minds – and sharper CFOs – want to dig behind the headlines.
The Facts Don’t Lie
The data – properly understood – should spark ‘inspirational dissatisfaction.’
Circumstances are getting better, but there are also headwinds and road-bumps ahead too.
Per our publisher, “Leo at Craftsman is a genuinely likeable gent.” He should be happy about the media plug.
But there’s a very different story than just a brief spark of local media recognition. For those who look at the facts with clear eyes and minds, they ought to desire an understanding of what a report like this could mean for them in their own markets.
The industry is just scratching the surface of its potential. As Rick Rand told MHProNews recently, we are just seeing the tip of the iceberg.
But even with all of the opportunities, the facts don’t lie. The home buying public has serious questions.
Until those genuine consumer questions get answered, there will not be a full recovery of our industry. To see why fact-based marketing and sales matter, see the related report, linked below. “We Provide, You Decide.” © ## (News, analysis, and commentary.)
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