Manufactured Housing: Manufactured Housing: An Industry Overview An Industry Overview An Industry Overview An Industry Overview National Association of Counties Rural Housing Forum Western Interstate Region Conference Santa Fe, NM Presenter: Presenter: Jason Boehlert Manufactured Housing Institute May 16, 2012
Manufactured Housing: America’s Sustainable and Reliable Housing Solution Manufactured housing Manufactured housing critical to housing market and American economy • What is Manufactured Housing What is Manufactured Housing • Economic Contribution • The Market We Serve • Historical Industry Trends • Industry Outlook • Policy Areas of Interest
Manufactured Housing: America’s Sustainable and Reliable Housing Solution What is Manufactured Housing • Homes built in a factory to the Federal y Manufactured Home Construction & Safety Standards (the “HUD Code”) • The HUD Code is the only federally- Th HUD C d i h l f d ll regulated residential building code • Distinctive business model: Homes built • Distinctive business model: Homes built indoors in a climate controlled setting, sold through a retail network, finished at g the site by installation professionals
Manufactured Housing: America’s Sustainable and Reliable Housing Solution Advantages in Quality and Cost • Precision Built • Homes are tighter, stronger, and built with H i h d b il i h greater dimensional accuracy than site ‐ built homes • Quality • Quality • QC oversight is continuous, with three layers of oversight nationally administered by HUD • Efficient Use of Skills/Resources • Efficient Use of Skills/Resources • High Volume, skills integrated production and volume materials purchasing • Green • Green • Optimal material use, minimal waste and recycling makes factory building inherently green green
The Perception
The Reality Newport Beach, California
Raleigh, North Carolina
Chantilly, Virginia
Tampa, Florida
Grayslake, Illinois
Germantown, Wisconsin
Tucson, Arizona
Mobile, Alabama
Manufactured Housing: America’s Sustainable and Reliable Housing Solution E Economic Profile i P fil (as of May 2012) • 46 corporations 46 corporations • BRK, CVCO, SKY • 122 home building facilities g • 4,000 home sales centers • 50,000 land ‐ lease communities (REITs) , ( ) • ELS, UMH, SUN • 51,606 homes built in 2011 • 14% of all new housing in 2011 • Approximately 75,000 full ‐ time U.S. based employees based employees Source: U.S. Census, IBTS, MHI
Manufactured Housing: America’s Sustainable and Reliable Housing Solution Serving a Vital Market Serving a Vital Market • 2011: Manufactured housing 2011 M f t d h i accounted for • 30% of all new homes sold under $200,000 • 50% of all new homes sold under $150,000 $150,000 • 71% of all new homes sold under $125,000 • 2 of every 3 manufactured homes 2 f 3 f t d h are in rural areas Source: MHI, U.S. Census
Manufactured Housing: America’s Sustainable and Reliable Housing Solution Serving a Vital Market • Best Value Proposition • Average Price Without Land • Manufactured Home ‐ $62,800 or $41.45 per SF • Site ‐ Built Home ‐ $206,560 or $84.07 per SF • Homes Placed Anywhere • Homes Placed Anywhere • 70 ‐ 75 percent on private property • 20 ‐ 25 percent in residential land ‐ lease 20 25 i id i l l d l communities
Manufactured Housing: America’s Sustainable and Reliable Housing Solution Serving a Vital Market All Home Owners All Home Owners MH Owners MH Owners $70,000 $60,000 $60,000 , $50,000 $40,000 $32,000 $30,000 $20,000 $10 000 $10,000 $0 73% of manufactured home 73% of manufactured home households earn less than $50,000 Source: U.S. Census, American Housing Survey
Manufactured Housing: America’s Sustainable and Reliable Housing Solution Historical Trends • 8.7 million households with 22 million ll h h ld h ll people live in manufactured homes (6.7% of nation’s housing stock/9% of (6 7% f ti ’ h i t k/9% f single family housing stock) • Since 1989: Manufactured housing Si 1989 M f t d h i accounted for 21.5% of all new single family homes sold family homes sold • 2002 ‐ 2005: Market imbalance due to subprime activity in site ‐ built market b i ti it i it b ilt k t Source: U.S. Census, American Housing Survey, MHI
Manufactured Housing: America’s Sustainable and Reliable Housing Solution Historical Trends • New single family site ‐ built homes sold in the US has declined by 76% since its peak in 2005 k • New manufactured homes sold in the US has declined by 57% Source: U.S. Census
Manufactured Housing: America’s Sustainable and Reliable Housing Solution Industry Outlook Positive • Manufactured housing is back on the rise over the past two years, since bottom in 2009. Currently at b l 25% of 2011 sales and 31% increase in sales over first quarter of 2011 l f f • 2011: Manufactured housing g accounted for 14% of all new single family homes sold y Source: U.S. Census, MHI
Manufactured Housing: America’s Sustainable and Reliable Housing Solution Industry Outlook Positive • Industry is responding to current housing market demands and stresses • Rapid growth in population over p g p p next decade looking to maximize housing value proposition g p p • As demand for our homes grows, more U.S. jobs created j
Manufactured Housing: America’s Sustainable and Reliable Housing Solution Policy Areas of Interest • Energy Efficiency • Tax Issues • Dodd ‐ Frank/SAFE Act Implementation Implementation • GSE Reform • HUD/FHA HUD/FHA
Manufactured Housing: America’s Sustainable and Reliable Housing Solution Please Visit Us www manufacturedhousing org www.manufacturedhousing.org MHIupdate d Manufactured Housing Institute
Manufactured Housing: America’s Sustainable and Reliable Housing Solution Please Contact Us J Jason Boehlert B hl Vice President, Government Affairs jboehlert@mfghome org jboehlert@mfghome.org 703.558.0660 Manufactured Housing Institute Ma u actu ed ousi g I stitute 2111 Wilson Blvd. Suite 100 Arlington, VA 22201
Manufactured Housing: America’s Sustainable and Reliable Housing Solution “If home buyers throughout the country had behaved like our [manufactured] buyers, America would not have had the crisis that it did.” “The government wants high quality, low cost housing and manufactured o o ou i g a a u a u e housing provides that product.” – Warren Buffett Warren Buffett
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