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Why Factory-Built?
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Article: Federal Government Research Shows Manufactured Housing | ||
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We knew it was true. Now a federal government study has verified it. Owning a manufactured home is an “attractive option” for low-income families and their communities. ABT Associates, a research and consulting firm that did the study for the Department of Housing and Urban Development, said the results of their research “contradict several preconceived notions regarding manufactured housing,” including the belief that manufactured homes lose value. The fact is, the research shows that manufactured homes can be a good investment when the same factors used in site-built home appreciation studies are utilized. The study compared three types of housing: manufactured housing, rental units and site-built homes. Within the manufactured home category, the study broke dwellings down into two categories: owned homes on leased land and home and land packages. The research led to four main conclusions: First: Owning manufactured housing is the lowest cost alternative and provides greater satisfaction to residents than renting. Second: A properly planned manufactured home development will not automatically deteriorate over time, in part because the structural quality of modern manufactured homes is equal to or better than site-built. This means there is no need for special policies to regulate the use of manufactured home in subdivisions where there are site-built homes or rentals, the study says. Third: People who own manufactured homes are no more likely to move from place to place than people in site-built homes, busting the myth that manufactured home lead to neighborhood instability. Fourth: Owning a manufactured home and land package provides a good return on the investment. The study says manufactured housing is especially attractive when compared to renting. “With manufactured housing as a generally lower cost alternative to renting, low income households might be expected to accumulate more wealth (through savings and land value appreciation) while in manufactured housing than in a rental unit. In sum, owned manufactured housing appears to be a relatively attractive option for housing low income families in a manner that would be beneficial to them and to the communities in which they live.” The report called manufactured housing “an often ignored alternative” that should be considered when discussing housing affordability for low income people. “Recent concerns over housing affordability for low income households appear to be difficult to resolve by developing policy options that focus only on traditional single family owner occupied dwellings and/or rental apartments. The researchers note that manufactured housing was an important factor in the low income homeownership boom of the 1990s and continues to be a significant part of the new housing mix. But despite its popularity, “manufactured housing is still often viewed with caution in many communities,” the report notes. This bias in part explains why manufactured housing is often neglected when considering affordable housing options. In a survey, homeowners were asked to rank their satisfaction with their dwelling and their neighborhood. The report says owners of manufactured homes were more satisfied with their homes than tenants of rental units were with theirs. The same pattern held true for the residents’ opinion of their neighborhood. Another finding of the report is that among low income renters, 56% of the residents spent more than 30% of their income on housing. But among low income manufactured home owners, only 30-38% spent more than 30% of their income on housing. Manufactured home owners spend less for housing when compared to site-built home owners and renters, leading researchers to conclude, “manufactured housing provides a ‘good value’ when compared with the more traditional housing alternatives.” Researchers used data from the American Housing Survey between 1993 and 2001, as well as field interviews, to arrive at their conclusions. | ||
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