According to London-based TopHat Homes, it takes one week to build one home.
Affordable Housing Shortages Worldwide
In a recent report referenced (but unidentified) by CNBC, 88 of 92 cities throughout the world are experiencing critical affordable housing shortages. Hong Kong’s affordability problem is considered to be the worst with an average house now costing 20 times an average household’s income.
In the US, supply levels hit a rock-bottom low of just 1.8 months in Q4 2021, according to the National Association of REALTORS® (NAR). And of those available houses to buy, less than 20% of them were considered to be affordable.
Reminder it’s the New Year. You promised yourself you would become a HARRIS Coaching client. You are done wasting time and want to follow a proven path in 2022. Now, while you are here make the next natural step and join the 1000s of other agents as a HARRIS Real Estate University coaching member. No more waiting or procrastinating. Join now. Here is the quick and simple enrollment.—-> YES, Enroll Me Now In Premier Coaching. I WiLL make 2022 my best year ever!
Could Modular Homes Be Part of Solution?
Despite supply chain disruptions, upward spiraling costs and shortages of labor and materials, traditional brick and mortar new home construction is creating more new homes now than at any other time since the Housing Crisis/Great Recession, according to the National Association of Home Builders (NAHB).
The problem? Traditional brick and mortar new homes take up to 6 months to build and are unaffordable to 69% of households.
A solution? Modular or manufactured housing takes just a few weeks to go from production to land plots.
According to Jordan Rosehaus, CEO of London-based TopHat Homes with majority financing from New York’s Goldman Sachs, “Over the next week, we will finish approximately 10 houses. That’s just our production program for now…a production program that can easily be ramped up.”
Rosehaus added that producing 27 TopHat homes takes the time of building one traditional brick and mortar house.
Joseph Daniels, CEO of Project Etopia, said that manufactured homes are more eco-friendly, more advanced, faster to build and use more sustainable materials, many of which are produced via 3-D printers.
Challenges Facing Modular Homes
Daniels said that current challenges faced by the manufactured home industry are similar to challenges faced by the EV car industry. First of all, old habits are hard to break. Secondly, price tags of modular homes are similar to traditional homes. Third, manufactured homes currently lack any kind of customization.
Fourth, the mortgage industry classifies prefab homes as non-standard homes. This non-standard classification makes it more difficult for a borrower to get a loan plus, if/when the borrower does get a loan, the borrower will have to come up with a larger down payment and pay a higher interest rate compared to a borrower for a brick-and-mortar home.
Industry Projections
In 2020, the manufactured home industry was valued at $106.1B. In 2026, the industry is projected to hit $153.7B.
An important question for you. 2022 is here…have you completed your 2022 Real Estate Business and Lead Generation Plan? If not, no worries. We have done the hard work for you. Download your 2022 REAL ESTATE TREASURE MAP! Text HARRIS to 47372. It’s that simple and takes 3 seconds. Text HARRIS to 47372 and when you do we will instantly text you back with a link to download. BONUS: For a limited time when you text HARRIS to 47372 you will also receive a Coaching Call!
4 Msgs/Month. Reply STOP to cancel, HELP for help. Msg&data rates may apply. Terms & Privacy: slkt.io/JWQt
Traction for the modular home industry is already well established in the US, India, Japan, Canada and China…that traction is expected to grow and expand to other countries over these next five years.
Thanks to CNBC.
