Hard times for Modular Housing |
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This recession or depression whichever term you prefer is really hitting the housing market hard. While interest rates are at an all time low, new home sales are down by 60% across the country. Expert Randall Eaton says, “I have spoken to a number of modular home plants and many are focusing on commercial building projects to keep the doors open”.
According to Mr. Eaton the residential market is very slow right now but affordable housing commercial projects are still going forward. Many of these projects are apartments, condos or townhomes. There is always a need for affordable housing especially when so many people are being forced out of their homes due to foreclosures or job uncertainty.
With so much inventory and little demand many modular home manufactures may have to close their doors and lay workers off until a rebound is felt. It's a sure thing that conventional construction of homes in the US is at a near standstill. Most economists would agree that the cornerstone of bringing to an end this downturn is for the housing market to stabilize. Economists say affordability in the housing marketplace will bring back buyers. Modular homes are every bit as much tied to mortgage rates and loan availability as any other type of home. Without capital available to the barrower to begin home building projects, there seems no clear way to bring about any meaningful change in the housing market in a time to avert disaster for many businesses directly tied to the housing market. Those that do survive will be in position to take the reins and be the new driving force in the housing industry.
Modular housing has the potential to become the new front runner in the new construction housing market if inventories stabilize and housing prices start to improve. With these two elements in place the modular housing industry will start to turn around according to Mr. Eaton. The advantage that some modular home manufactures will have over conventional construction type companies is the ability to return to present infrastructure and resume production, whereby stick builders will have to re-hire a workforce and start all over giving modular construction an edge up.
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