Issue link: https://read.dmtmag.com/i/60637
Let's Play Our Role in Confronting the Affordability Crisis MHI FOCUS BY Richard "Dick" Jennison A new report from the National Housing Conference's Center for Housing Policy finds that nearly a quarter of working households here in the U.S. spendmore than half their incomes on housing. The report, "Housing Landscape 2012," points out those households with "se- vere" housing costs has risen from 21.8 percent to 23.6 percent between 2008 and 2010. (Se- vere means that a family is spending more than half of their income on housing costs.) While this is not "breaking news" to many of us in the housing industry, the statistics nevertheless confirm that housing costs continue to pose a major problem for millions of American fami- lies. The report goes on to note that this rise is due largely to falling incomes and rising rental housing costs. Because of the housing crisis which has resulted in increased foreclosures and an increasing number of "upside down" home values, the increased demand for rental hous- ing has outstripped supply, driving up rental prices. At the same time, the loss of jobs and cuts in hours worked have added to the prob- lem. The housing costs of most working home- owners are still tied to homes bought before the sharp drop in housing costs over the past three years and do not reflect today's lower home purchase prices. Meanwhile, incomes slid from 2008 to 2010more than twice asmuch as hous- ing costs. Incomes for working homeowners fell even more sharply than they did for working renters due to the drop in average hours worked. The report also noted that among the 50 states and the District of Columbia, the top five states with the highest share of working house- holds with severe housing cost burdens in 2010 were California with 34 percent, Florida with 33 percent, New Jersey with 32 percent, fol- lowed by Hawaii with 30 percent and Nevada with 29 percent. Among the 50 largest metro- politan areas in the country, 19 have experi- enced significant jumps in the number of households with severe housing costs. The Miami-Ft. Lauderdale, Florida area leads the APRIL 2012 18 THE JOURNAL way with a 43 percent increase, followed by Los Angeles-Long Beach-Santa Ana with 38 per- cent, San Diego-Carlsbad-San Marcos region with 37 percent, Riverside-San Bernardino- Ontario region with 35 percent, and New York-NorthernNew Jersey-Long Island with 35 percent as well. These and other study findings all point to the need for housing that can meet the growing housing affordability crisis facingAmerican fam- ilies. Those of us involved in the manufactured and modular housing industries know that our homes offer a logical solution to this crisis by providing quality, safe, affordable homes. The fact is the average sales price of all new manu- factured homes in 2010 was $62,800 compared to the average sales price of a site-built home of $206,560 (without land costs factored in). In 2010 cost of construction per square foot for a manufactured home was $43.06 compared to $84.07 for a site built home. To ensure that the industry can participate in solving the current housing problems in this country, we have to work to overcome the reg- ulatory and market issues which limit our in- dustry's ability to play its logical and much needed role. We must ensure that our homes are not penalized by onerous and unreasonable building standards, or outdated and biased zon- ing treatment so our homes can be readily avail- able regardless of rural, suburban or urban placement.And to ensure that our homes really do offer homeowners with an affordable housing option, wemust guarantee fair and equitable fi- nancing by both government and private fi- nancing sources. I understand that these and other challenges stand in the way of factory-built homes playing a growing role in America's housing market- place. By working together to educate, moti- vate and persuade those public and private officials who control our destiny, we can over- come these challenges and move our industry forward into its logical, pivotal role in address- ing the growing housing affordability gap in America. AsMHI's new president and CEO, I cannot think of a more opportune time to join the fac- tory-built housing industry.While I do have an extensive background in the building industry, I look forward to learning specifically about your industry – about how manufactured and modu- lar homes are built, about our regulatory chal- lenges, about how our homes are financed, about how today's manufactured home com- munities operate, and many, many more as- pects of the industry. I count on each of you to help me learn more about this fascinating in- dustry. As part ofmy industry education and knowl- edge-building I will be traveling to industry gatherings around the country over the next severalmonths to introducemyself and to listen to your perspectives on what we need to do to take full advantage of the industry's opportuni- ties and to meet the challenges confronting us. I want to meet as many of you as possible, so in case I inadvertentlymiss you please don't be shy about coming up and introducing yourself. I re- ally want to hear what you think about what we can do to move our industry forward. Also feel free to contact me via email and phone at rjen- nison@mfghome.org or (703) 558-0678. The opportunities, the challenges, and the need stand before us. Working together, we can help address the growing housing afford- ability gap confronting more and more Ameri- cans. By doing so, we can help build a brighter future for our industry, our homeowners, and our nation. T J Richard Jennison is President and CEO of MHI, the preeminent national trade association for man- ufactured and modular housing industries, repre- senting all segments of the industries before Congress and the Federal government. From itsWashington, D.C. area headquarters, MHI actively works to promote fair laws and regulation for allMHI mem- bers and the industry. He can be contacted directly at (703) 558-0678. For more information onMHI, visit www.manufacturedhousing.org