The manufactured home sector has enjoyed inspired growth since the U.S. emerged from the most recent recession. New home sales have improved year-over-year, and government agencies such as HUD have endorsed affordable factory-built models as the preferred option. Given the country is in the midst of an economic resurgence that includes historically low unemployment, significant wage growth, and remarkably low-interest rates, the manufactured homes sector forecast appears quite promising. For working families considering purchasing a new home in 2020, these are four trends worth considering.
1: Manufactured Home Sales Surging
In the U.S., factory-built single-family units are expected to increase by 20–30 percent in 2020. That figure stands in stark contrast to new site-built construction that slowed in 2019 and is projected to trend in the negative in the coming years. But the U.S. is not the only country where buyers are selecting this more affordable option. Reports indicate that manufactured home sales are expected to top 1.1 million globally in 2020. The surge in these prefabricated models has been driven by the fact they now meet government standards for quality and safety. The cost of a manufactured home runs approximately half to one-third of new site-built construction. Those are strong drivers heading into 2020.
2: Double-Wide Manufactured Homes Delivering Value
In the manufactured home industry, one-section homes are generally called “single-wides,” and two-section homes are called “double-wides.” Over the last two years, an interesting phenomenon has taken place with respect to cost. According to reports, the average price of single-wide homes has increased modestly from $59,400 in January 2018 to $63,600 in April 2019 in the Western U.S. That trend has not been mirrored by larger double-wide Palm Harbor models.
Matching the same sales period and region, double-wide homes averaged $114,220 in January 2018 and slipped back to only $109,100 in April 2019. That trend is interesting because double-wide Champion homebuyers usually enjoy 2–3 bedrooms and 2 bathrooms, as well as more living space. The average single-wide home ranges from 500 to 1,200 square feet. By contrast, double-wide homes run upwards of 2,200 square feet. If this trend continues into 2020, double-wide homebuyers will be gaining big bang for their buck.
3: Gated Manufactured Home Communities Popular
The number of site-built single-family homes is expected to decline in 2020 and beyond. Part of that negative trend is due to developers leaning toward creating gated communities with high-quality manufactured models. From a business perspective, land developers are discovering that they incur far less overhead by sidestepping onerous materials and labor costs, among others. One Canadian land developer reportedly acquired $172 million in new manufactured homes to create 14 communities in California and Arizona in 2019. Investment has risen by as much as 20 percent in recent years, and improved manufactured home quality and amenities are expected to increasingly attract gated community developers in 2020.
4: Manufactured Home Interior Designs
One of the substantial shifts in manufactured homes over the past 5–10 years is that they rival site-built options at all levels. It’s no secret that companies producing manufactured homes have already integrated high-end material options, smart technologies, and customization that outpaces many site-built homes. The latest interior design trends are expected to make even modestly-priced manufactured look high-end. These are eye-raising trends.
More Open Floor Plans
Window and Natural Light Maximization
Flex Rooms for Home Offices and Exercise Space
Manufactured home buyers have already enjoyed customization options such as hardwood flooring, plush carpets, skylights, porches, and luxury bathrooms, among others. The 2020 homes are expected to be increasingly sophisticated while remaining the most cost-effective option.
*Originally published on Medium https://medium.com/mobile-manufactured-homes/4-top-manufactured-homes-trends-for-2020-a89720cc8cf6
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