flexiblefullpage - default
Currently Reading

What Can Manufactured Housing Do for the Affordable Home Shortage?

Advertisement
billboard - default
Off-Site Construction

What Can Manufactured Housing Do for the Affordable Home Shortage?


October 21, 2019
Breckenridge manufactured home by Clayton Homes
Photo: courtesy Clayton Homes

Ridaa Murad, founder of Breakform, a company that owns more than 20 communities with manufactured housing, writes in Forbes that such developments provide opportunity for investors looking for steady, asset-backed cash flows and yields generated from rental income.

Building homes in a factory setting can afford investors an opportunity to arbitrage the differences between housing made by people in stick-built situations or through manufactured automation.

In the past, a hurdle to putting buyers in manufactured homes was financing. Many lenders required larger down payments and charged higher rates and fees for nontraditional properties. That is changing, with Fannie Mae reducing the down payment requirement to 3%, along with lower fees for manufactured home mortgages. This alone is going to make these homes an option for people who otherwise wouldn’t have qualified with the previous higher rates and down payment requirements.

More financing options should ideally result in more manufactured home communities being constructed, presenting more opportunities for investors. But before this can be fully realized, local communities will need to adjust zoning laws to encourage and allow for new communities to be developed.

To read more about the traits investors should look for in communities and in markets …

Read More

Advertisement
leaderboard2 - default

Related Stories

Housing Markets

5 Housing Markets That Would See a Huge Increase in Homeownership if Mortgage Rates Dropped

Spokane, Wash., would experience an 11.4% increase in affordability if rates dropped to 6%

Affordability

Survey Shows Buyers Have Homebuying Regrets

More than 80% of respondents have regrets about their home purchase and 50% of upcoming buyers would consider forgoing using an agent

Awards

4 Housing Affordability Organizations Awarded 2024 Ivory Prize

Ivory Innovations will provide $300,000 in total prize money to support winners’ initiatives

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category

Home builders can maximize efficiencies gained through simplification and standardization by automating both on-site and back-office operations 

Delaware-based Schell Brothers, our 2023 Builder of the Year, brings a refreshing approach to delivering homes and measuring success with an overriding mission of happiness

NAHB Chairman's Message: In a challenging business environment for home builders, and with higher housing costs for families, the National Association of Home Builders is working to help home builders better meet the nation's housing needs

Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.