Factory-Built Housing Where Are We in 2017?

Factory-Built Advantage Energy Star and more energy-efficient HVAC is rapidly becoming incorporated into construction Energy efficiency dramatically lowering the cost of owning home

Terminologies Manufactured Homes – Built in factory in compliance with federal HUD codes/standards (1976) Modular Homes – Built in factory in compliance with state or local codes Mobile Homes – Prior to 1976

Industry Stats 81,136 manufactured homes nationally in 2016 ($3.5 billion) 261 manufactured homes in NC in July 2017 16,858 manufactured homes in NC from 8/2011 thru 7/2017

Industry Stats 22 million homes currently occupied 9 percent of new single-family home starts are manufactured or factory-built home

Industry Production Single vs. Multi-section Homes 20% single/80% multi-section in 1998 50% single/50% multi-section in 2015

Industry Consolidation 1977 – 25 companies building manufactured homes 2017 – 3 holding companies building manufactured homes

Sales/Distribution Shift away from independent (street) manufactured homes retailers to in-community sales Little to no raw land development as land-lease communities face NIMBY financing issues

Cost of Homes Manufactured homes average about 25% to 35% per square foot of construction (not counting land) of site-built homes Modular homes average about 10% per square foot of construction of site-built homes

Factory-Building Experience Tighter construction & energy efficiency 90 percent of homes in Sweden are built in factories and transported/sited to home’s final location

Other Advantages Buying in bulk – savings passed on to homebuyers More responsive to consumer demand More likely to be single-story, smaller homes that people can afford

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Home Enhancements New Wind Standards/Codes Developed and Implemented in High Wind Zones Along Key Coastal Regions After Hurricane Andrew Homes Performed Better During Recent Hurricanes (especially along Florida Keys

Factory-Built Housing Largest source of non-subsidized, affordable housing in America

Resources www.American Housing Advocates

For More Information North Carolina Manufactured and Modular Homebuilders Association Raleigh, North Carolina Brad Lovin, Executive Director 919-872-2740