Wednesday, November 30, 2011

Bleak outlook for manufactured housing as secondary market shuns sector

Bleak outlook for manufactured housing as secondary market shuns sector.
 
by KERRI PANCHUK, HousingWire

Firms that build, sell and finance manufactured homes blame regulations and a lack of secondary market support for plummeting demand within their space.

When testifying in front of the House Financial Services Committee, Kevin Clayton, CEO of Maryville, Tenn.-based Clayton Homes and head of the Manufactured Housing Institute, painted a picture of an industry weathering through a five-year uphill battle.


Clayton told lawmakers Tuesday that the industry lost business when subprime lending in the early part of the decade allowed more economically limited families to buy traditional site-built homes, pulling business away from makers of modular or manufactured homes.

"Since 2005, the pace of new manufactured homes sold in the U.S. has declined by 65% (146,881 in 2005 versus 50,046 in 2010) and there has been a decline of nearly 80% since 2000 (when 250,419 new manufactured homes were produced," Clayton said in prepared testimony.

Clayton blames uncertainty over new financial services regulations for hindering growth within the segment.

READ MORE about this on HousingWire.

Tuesday, November 29th, 2011, 12:13 pm

3 comments:

William said...

Well Kevin -- it goes back to an old attitude ----- if I cannot afford a "real home" then I will buy a trailer home. Why are you crying? You have plants that produce modular, yet you are intent on trying to get the government to give you positive legislation that will allow you and other HUD Code producers to continue to sell your products to those who are in need of shelter and cannot afford a "real home."

But again, where is the modular industry in all of this? Why are we not seeing them testify before congress? Why are we not seeing the BSC and other industry trade groups out there in the forefront talking about the positive aspects of modular housing and trying to get our (hopefully) one term President to act on behalf of the citizenry and get housing back and in turn boost our economy.

Randy said...

William,

I agree with all you say. Why must the HUD code industry continue to lump the Mod industry in with itself? This never ending differentiation between "stick built" and modular is insane. We do not have a trade organization doing anything but taking dues from us.
Where is the promotion of "true" modular construction?
We can only home this guy is a one term president.

Belinda said...

There are plenty of modular homes in today's generation which cost much less cheaper than the traditionally-built ones. When we sold our house in 2009, we opted to live in one of these houses and we are very much satisfied with it.