HOUSE PRICES RISE 17.4 PERCENT
Blog Posting # 654 @ 3 September 2021: EducateMHC
Perspective. ‘Land lease communities, previously manufactured home communities, and earlier, ‘mobile home parks’, comprise the real estate component of manufactured housing!’
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INTRODUCTION: Yes, another potpourri of housing-related information and statistics. Enjoy!
HOUSE PRICES RISE 17.4 PERCENT
Yes, you read that right! Quoting from the Federal Housing Finance Agency’s (‘FHFA’) August 31st Press Release: “U.S. House Prices Rise 17.4 Percent over the Last Year; Up 4.9 Percent from the First Quarter.”
And a few Significant Findings, in the same Press Release:
• House prices have risen for 40 consecutive quarters, or since September 2011.
• House prices rose in all 50 states and the District of Columbia between the second quarters of 2020 and 2021. Five states with highest annual appreciation rates? Idaho, Utah, Arizona, Montana, and Rhode Island (All in excess of 25 percent!)
• House prices rose in all the top 100 largest metropolitan areas over the last four quarters.
So, if that isn’t dismal enough news for those of us in the housing arena, what the Department of Energy (‘DOE’) is proposing to do to manufactured housing, with its’ new energy mandate standards, is ‘over the top’. How so? Read on….
$7,958.00 PRICE INCREASE TO SINGLESECTION MANUFACTURED HOMES
Yes, once again, you read that right! Quoting from the Manufactured Housing Association for Regulatory Reform’s (‘MHARR’) August 30th Press Release: “…proposed DOE (‘Department of Energy’) standards would impose extreme and costly new energy mandates on manufactured homes…without input from the HUD-Code manufactured housing industry….” Just how bad would these price increases be? Well the above title leads the assault, followed by these additional estimates of price increases:
• “The 2021 IECC standards would result in a minimum $12,908.00 retail level structural price increase for a double-section (sic) ‘multisection’ manufactured home.”
• “Cost increases of this magnitude would exclude 6,816,883 (prospective homebuyer) households from the manufactured housing market, based on NAHB metrics developed in connection with DOE’s 2016 proposed energy standards rule for manufactured housing”
• These figures do not include additional costs for testing, enforcement, and regulatory compliance….
If you truly care about the present and future of HUD-Code manufactured housing, and its’ land lease community sector, then you’ll be present if/when given the opportunity to participate in public hearing(s) about ‘proposed DOE standards’ and their probable consequences to our ability to deliver affordable housing to this nation’s would be homebuyers!
THE QUESTION ON EVERYONE’S MIND:
HUD-Code housing manufacturers having a profitable year or do they continue to suffer financial loss due to raw material price increases, OEM inventory issues, and transportation costs?
On one hand, Wall Street analyst reporting paints a generally rosy picture of manufactured housing profitability.*1 Yet communiques from some of these same firms (Think the Big 3-C companies) paint a dismal state of business affairs, e.g. “…we have concerns (as to) viability to continue to maintain price protection.” (&) “This is resulting in the production of hundreds of units at significant losses.”
Who and what to believe?
Your input on this confusing but important matter? Gfa7156@aol.com
1. For examples of said stock market performance among HUD-Code manufacturers and land lease community real estate investment trusts (‘REITs’), read the monthly ‘Manufactured Housing Production & Stock Market Report’ that’s an integral part of every issue of The Allen Confidential newsletter. Visit www.educatemhc.com
HOW ‘BOUT A BREATH OF FRESH AIR?
Federal Housing Finance Agency (‘FHFA’) will, on 14 September 2021, host a Public Listening Session about ‘Using Accessory Dwelling Units (‘ADUs’) to Increase Housing Supply.’ This session will occur between 1 & 4PM EDT. Contact FHFA directly for more information.
FHFA goes on to say it “…is interested in learning more about the potential of accessory dwelling units (‘ADU’) to address housing supply and affordability challenges in communities across the U.S., including how FHFA and its’ regulated entities, Fannie Mae & Freddie Mac could support this housing type.”
A few personal observations about this emerging ADU matter:
First, I’m encouraged to hear a federal agency declare ADUs are indeed a ‘housing type’.
Second; Use of Tiny Houses (in my opinion, a type of ADU) are already approved for siting on larger building sites, in California, on which already sit larger stick-built or manufactured homes.
Third. In my opinion, ADUs (whether they be Tiny Houses or customized sheds with built-in sanitary facilities and kitchens), when allowed by local housing authorities, make for ideal siting on functionally obsolete rental homesites in land lease communities.
I plan to sit in, and possibly comment, during this Listening Session. How ‘bout you?
George Allen, CPM, MHM c/o EducateMHC