Issue link: https://read.dmtmag.com/i/112125
COMMUNITY CONSULTANT Observations From The Louisville Manufactured Housing Show BY FRANK ROLFE I decided to attend the Louisville Manufac- heard the calls for a more affordable product. and the helpful salespeople and wonder ���then tured Housing Show this year. It���s the first time Sure, there were the two-story multi-section why aren���t these things selling?��� They���re movI���ve been there, and I thought it would be a homes that will certainly never grace a manu- ing product at the boat show next door. So why good chance to get the pulse of the industry. factured home community, but those are for a can���t we get these homes out the door as fast as Those of us who own and operate manufactured different market altogether ��� and were not bad they can build them? We all know that Amerhome communities can easily get out of touch values even then. I walked through one partic- icans are getting poorer, and there is a huge dewith the manufacturing and retail side of the ularly well detailed modular home that sold for mand for affordable housing. So who���s to business, and there���s no question that seeing $56,000 which, given the right piece of prop- blame? the latest in homes and features can be a good erty, seemed like a good value for the homeThe problem, in one word, is ���financing��� exercise in understanding If every car buyer in the what���s appealing to the current U.S. had to pay cash, then consumer, as well as learning there would be virtually no cars The quality of the product at the show was what types of homes and prices sold. Whether $12,000 are available to fill vacant lots. Chevrolets or $100,000 Range as good as I���ve ever witnessed. The manu- Rovers, they���d all just stack up The homes of today are the best I���ve ever seen on the lots until the batteries all The quality of the product at facturers have really got their act together ran dead and the tires went the show was as good as I���ve flat. There is no big ticket item ever witnessed. The manufacthat can be sold without credit. in providing visually appealing floor plans turers have really got their act And manufactured homes are together in providing visually no different. So what���s keepand designs. appealing floor plans and deing those great looking homes signs. I was particularly imwith reasonable prices and propressed at how well they���ve fessional salespeople from takupdated the ���look��� of the homes to meet the owner. The moral is that the pricing of the ing off is that they are trying to work around a tastes of the modern consumer. Every model I homes is not the problem. vacuum in lending. went in looked like Martha Stewart had been Everybody appeared in good spirits The industry has still not been forgiven for there. The choice of cabinet designs, carpets, The last show I was at seemed like a mortuthe ills of the past paint colors, vinyl flooring and even the inte- ary convention. But there was a positive mood When will there be redemption for the sins rior mock-ups were extremely professional. I at the show ��� people are really starting to be- of the late 1990s and early 2000s? It seems like could not come up with even one criticism ��� ex- lieve in the product again. The sales pitches nobody can forget those days of falsified borcept that I wish they���d look that good back in were professional and aggressive. So I can���t say rowers and giant defaults, even though it���s been the days of 400,000 units per year. that the attitudes left anything to be desired. over a decade ago. What���s really unfair about The price points were extremely The industry may have low sales right now, but this is that the stick-built, single-family indusreasonable people are willing to give it another try. try had the exact same meltdown with the same From $16,000 singlewides to $27,000 douSo what is the problem with the industry? effect ��� only much, much larger losses ��� and blewides, the price points were the lowest I���ve You couldn���t help but to walk around the they���re right back in business making loans ever seen. Clearly, the manufacturers have multitude of attractive homes, the low prices again. MARCH 2013 18 THE JOURNAL