Why Prefabricated Homes Could Be The Affordable Housing Solution Case Study
Across America, goals of achieving homeownership have not died. But, in 2016, the U.S. Census Bureau announced that U.S. homeownership had declined to 62.9%, which is the lowest rate of homeownership since the U.S. Census Bureau started tracking homeownership.1
Why?
Forbes cites multiple factors as affecting the low rate of homeownership, including an increase in millennial renters.
Another reason for low homeownership is the steady increase in rent prices. The 11 largest metro areas in the U.S. are oversupplied with high-cost apartments and lacking in alternative housing for the rising middle and low-income renters in these areas.2
So, what is the typical cost of renting a home? According to Zillow, the median U.S. rental listing price …show more content…
But prefabricated housing is changing that.
Why Prefabricated Homes Could Be the Affordable Housing Solution
Manufactured homes account for about 70% of new American homes that cost less than $150,000. And in January 2017, the average sale price for manufactured homes was $68,100.
The Urban Institute notes that based on U.S. Census Bureau data, manufactured housing is 35-47% cheaper per square foot than new or existing site-built housing.
Because of the affordability of new manufactured homes, there has been significant growth in the prefabricated housing industry in the last couple of years. For example, the shipments of new manufactured homes has steadily increased.
Shipments of New Manufactured Homes6
• 2014 – 64,300 new manufactured homes shipped
• 2015 – 70,500 new manufactured homes shipped
• 2016 – 81,100 new manufactured homes shipped
• 2017 – 85,700 new manufactured homes shipped
Across the U.S., manufactured and modular homes are growing as a more affordable housing option for families achieving their dreams of …show more content…
The affordability of prefabricated housing is a large factor for why they are popular. Manufactured housing is a specific subset of prefabricated housing and the federal government has noticed its significance. The Department of Housing and Urban Development has noticed the key role manufactured housing plays in affordable
Why?
Forbes cites multiple factors as affecting the low rate of homeownership, including an increase in millennial renters.
Another reason for low homeownership is the steady increase in rent prices. The 11 largest metro areas in the U.S. are oversupplied with high-cost apartments and lacking in alternative housing for the rising middle and low-income renters in these areas.2
So, what is the typical cost of renting a home? According to Zillow, the median U.S. rental listing price …show more content…
But prefabricated housing is changing that.
Why Prefabricated Homes Could Be the Affordable Housing Solution
Manufactured homes account for about 70% of new American homes that cost less than $150,000. And in January 2017, the average sale price for manufactured homes was $68,100.
The Urban Institute notes that based on U.S. Census Bureau data, manufactured housing is 35-47% cheaper per square foot than new or existing site-built housing.
Because of the affordability of new manufactured homes, there has been significant growth in the prefabricated housing industry in the last couple of years. For example, the shipments of new manufactured homes has steadily increased.
Shipments of New Manufactured Homes6
• 2014 – 64,300 new manufactured homes shipped
• 2015 – 70,500 new manufactured homes shipped
• 2016 – 81,100 new manufactured homes shipped
• 2017 – 85,700 new manufactured homes shipped
Across the U.S., manufactured and modular homes are growing as a more affordable housing option for families achieving their dreams of …show more content…
The affordability of prefabricated housing is a large factor for why they are popular. Manufactured housing is a specific subset of prefabricated housing and the federal government has noticed its significance. The Department of Housing and Urban Development has noticed the key role manufactured housing plays in affordable