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Manufactured/Mobile Homes Profiler 2018

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Presentation on theme: "Manufactured/Mobile Homes Profiler 2018"— Presentation transcript:

1 Manufactured/Mobile Homes Profiler 2018
Brought to you by Media Group Online, Inc. An Appealing, Affordable Housing Choice for Many © 2018 Media Group Online, Inc. All rights reserved.

2 Manufactured Housing Boom
Manufactured Housing Boom According to the US Census Bureau, the total number of manufactured/mobile homes shipped during 2017 increased 14.5%, to 92,900, compared to 2016’s total of 81,100. Occupancies and rents during 2017 increased for the 10th consecutive year. This continues the significant growth patterns since at least 2015, when shipments increased 9.6% from 2014 levels and 2016, when shipments increased another 15%. From 2013 to 2017, manufactured home shipments increased by 47% and the industry’s share of total housing production increased from 6.1% to 6.7%.

3 Don’t Call It a Trailer Park
Don’t Call It a Trailer Park During the first half of 2017, substantial rental rates for home, condos and apartments have sparked interest in manufactured home communities. This is particularly true in Sun Belt retirement communities, but also in the Midwest where demand is brisk. Many age-restricted manufactured home communities are full, leaving smaller, older parks the only alternative for many people. Investors are buying small parks and upgrading the amenities to be able to charge higher rents. Seattle, WA had the lowest manufactured home vacancy rate, or 2.0%, during Q1 and Q2 2017, but Salt Lake City, UT had the lowest average rent, or $520, among cities with the lowest vacancy rate. Toledo, OH had the highest vacancy rate, at 20.3%.

4 New Life for an Old Industry
New Life for an Old Industry During the past, manufactured homes were confined to land-lease communities, now, half of them are sited on privately owned land and housing subdivisions. Newer manufactured homes are larger and more attractive, and with more appealing features. Although manufactured homes are larger today, the average price of $25.19 per square foot is significantly less than conventional home’s $54.65 per square foot cost. Safety and construction regulations have improved quality and made it possible for manufactured homes to be moved across state lines and sited almost anywhere. There are approximately 50,000 manufactured land- lease communities in North America.

5 The Big-3 Rule the Market
The Big-3 Rule the Market Although there are 63 manufactured-home builders, three of them dominate the industry. Combined, they account for 68% of the market: Clayton Homes, Inc. (41%), Champion Home Builders, Inc. (15%), and Cavco Industries (12%). In addition to manufacturing homes, Clayton Homes owns two major banks, Vanderbilt Mortgage and 21st Century, which specialize in financing manufactured homes. Affordable financing for manufactured homes is difficult to obtain from traditional banks. Cavco Industries has recently acquired well- known manufactured home builders Fleetwood Homes and Palm Harbor Homes.

6 More Insights About Manufactured/Mobile Homes
More Insights About Manufactured/Mobile Homes During February 2018, the Department of Housing and Urban Development reviewed its manufactured-homes regulations to consider reducing burdensome regulations. According to ManufacturedHomes.com, independent retailers sell more than half of all manufactured homes bought in the US. Independent installers then install these homes. HUD regulates both of these groups in addition to manufacturers. In most states, a manufactured home is considered a vehicle, so it depreciates in value instead of appreciating like real estate. Once a resident owns the land on which it sits, it is treated as a home.

7 Advertising Strategies
Advertising Strategies Dealers’ advertising messages can highlight the cost savings compared to a traditional home and show seniors how they can now afford to retire using the equity in their homes. Manufactured home parks and dealers can feature manufactured home communities with family-friendly amenities to attract Millennial families that may be unable to afford a traditional single-family home. Because Millennials are very eco-conscious, emphasize manufactured homes’ energy- efficiency ratings and compare them to the excessive use of energy to construct and reside in traditional single-family homes.

8 New Media Strategies Advertise on the AARP and similar Websites to reach people planning, preparing or about to retire. For parks, create an online community for your park residents where they can interact, exchanging recipes, posting lost pet info, etc., and advertise vacancies they can share with friends. Post photos and videos of manufactured homes with modern design elements on Pinterest and Instagram to attract younger buyers. Consider hiring a specialized designer to create model-home decors and be your social media spokesperson/influencer.

9 Title Body copy


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