The California Manufactured Housing Institute (CMHI) is a
private non-profit trade and professional association whose
member companies build, sell, install and finance factory
constructed housing and develop manufactured housing
communities.
The Institute was founded to advance the availability and
ownership of quality, high value homes, marketed by licensed
retailers, by promoting the purchase of factory constructed
housing and the development of desirable sites and communities in California. The Institute's public, government and consumer relations programs are directed toward these goals.
Outlook 2007
The following prognostications come with all the normal
caveats. Obviously, trends can take some unexpected changes in the
economy and/or consumer preference. Here's what we see, barring
significant changes in the economy and financing, for 2007:
- Production/Shipments
New Manufactured home shipments, including shipments
into California from neighboring states, should be approximately
6,004 homes. About 4,803, 80 percent, of those homes will be
produced in California’s factories. Additionally, deliveries of
factory-built homes could add approximately 400 units to the
total shipments of factory constructed homes.
- Manufactured Homes as Real Estate
In 2006, 32 percent of the new manufactured homes sold in
California were sited in subdivisions, planned unit developments
and on scattered urban and rural lots where the land and home are
owned and financed as real estate.
The real estate trend for manufactured housing will continue
and could represent 33 to 35 percent of new sales in 2007.
- Urban In-fill and Redevelopment
With the introduction of two-story homes and architecturally
compatible exterior treatments, coupled with on-site
enhancements such as attached garages, porches and decking,
factory constructed housing has become a viable and cost effective
choice for local governments, redevelopment agencies and
developers for urban in-fill and redevelopment projects.
As the market niche is developed, bringing affordable
housing to inner-city families, real estate sales of manufactured
homes could reach 50 percent of total sales within five years.
- Demographics
The profile of those who have purchased factory constructed homes
in the past decade demonstrates that significant changes are occurring in
the characteristics of factory constructed homeowners. Recent
purchasers are younger, more affluent, have larger families, have attained
a higher level of education and are less likely to be retired than factory
constructed homeowners as a whole. Most are siting their homes on
private property as opposed to traditional land-lease communities.
We expect the average household size for new manufactured
homes to be more in tune with the states average of 2.7 for singlefamily
homes as opposed to the 1.9 persons for the existing
manufactured housing stock.
- Federal Standards & Factory Inspection
All manufactured homes built since June 15, 1976, must
conform to the National Manufactured Home Construction and
Safety Standards, a national, uniform building code commonly
called the "HUD Code." This code is administered by the U.S.
Department of Housing and Urban Development.
The HUD Code regulates home design and construction,
durability, fire resistance, energy efficiency, and the installation
and performance of heating, plumbing, air conditioning, thermal
and electrical systems.
The HUD Code mandates that each factory adopt an
approved quality control program. This includes a system for
testing and inspecting each home constructed. This inspection
system covers review of the blueprint of the home and the
construction of the home as it moves through the factory. The
U.S. Government enforces the HUD Code through a contract
with the National Conference of States on Building Codes and
Standards. Third-party engineering companies perform in-plant
inspections. A final inspection of the home occurs when the state
or local government issues a mandatory certificate of occupancy,
which is an inspection of the installation of the home.
The construction of all manufactured homes is backed by a
one-year written warranty.
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