Issue link: https://read.dmtmag.com/i/231807
On The On The A JOURNAL Q&A Horizon With Industry Professionals Horizon We asked industry professionals three questions pertaining to what's on the horizon for the Manufactured and Modular Housing Industries. The following is the answers to these questions: 1. After showing increases in production in 2013, do you think this trend will continue and why? 2. What, in your opinion, continues to be the greatest hurdle for the Manufactured & Modular Housing Industries? 3. What do you see on the horizon for our industry in the next 5 years? 1. Yes, I think the trend will continue. The housing market has been off for several years and our industry is poised to fill the needs of American's wanting to own their own home. Personal income has not increased for the average new home owner and our homes will offer more value for the price of a new home. Also Baby Boomers retiring will be downsizing and looking for nice retirement communities to move into. Nancy Geer 2. I truly believe we have not done well in Executive Director New York Housing educating consumers about our homes. We Association, Inc. displayed a home at the Empire State Plaza in April 2013 where hundreds of state workers came through. Nine out of ten visitors had never been in a factory built home before. We need to do more in marketing our homes and getting people into them. The old adage "Seeing is Believing". 3. The industry faces many challenges with the new lending regulations coming. However, I believe that we will survive those challenges and be stronger for it. We will have a larger market share of the overall housing market. The modular side of the industry will continue to grow and we will see more land leased communities, especially retirement communities. 1. I do believe the trend will continue, especially in areas where the repos are drying up. Manufactured housing is still the most affordable home ownership and unless they receive help, the youth of today are going to have a tough time buying a stick built home until they have established some savings or equity. 2. In my 35+ years in the industry the hurdles seems to have remained the same, a constant battle over competitive financing and Knute Chauncy zoning. National Sales Manager Tie Down Engineering 3. I believe the industry is positioned to continue growing at a steady 3 -5% pace for several years to come. I cannot, however, begin to predict what the current or future political regimes will or won't do to restrict that growth. 1. It is my opinion that 2014 new home sales will remain slow. For the most part, the economy remains soft and though there are pockets of improvement, growth will continue to be sluggish. The ramifications of the SAFE Act and Dodd-Frank have caused lenders to limit the types of products they will finance, and unfortunately factory built homes have been very much affected by those decisions. Without viable lending programs our market is greatly limMary Gaiski Executive Director ited. Penn. Manufactured 2. Financing, financing, financing. Calls Housing Association come in daily from members and consumers alike looking for lenders who will finance new or pre-owned manufactured homes. Access to adequate lending sources remains the number one concern for the industry. PA once had a very good supply of community banks willing to lend on factory built homes in communities and on private land, however, the implementation of SAFE and Dodd Frank has dried up many of those sources making financing our greatest hurdle. Most affected by the limited financing programs are homes going into land leased communities. Community owners are faced with high vacancy rates and abandoned homes, challenging them to get more involved with buying, selling and financing homes. 3. As businesses struggle with government regulations (specifically Dodd Frank and Obamacare) our country's economic growth will remain slow, and, though it has been reported that manufactured housing is a dying industry, I am confident that manufactured housing and modular housing will continue to play a huge role in the housing market. People will continue to need homes, at all price points. Our industry is very resilient, and despite costly laws and regulations, we will figure out how to continue to provide consumers with quality, affordable homes. On The Horizon JANUARY 2014 9 THE JOURNAL