The death of U.S. Rep. Jackie Walorski, killed in a car crash on 119 near Elkhart Aug. 3, has left the northern Indiana area, and friends and colleagues nationwide, stunned and grieving at the loss.
Walorski, 58, had served Indiana’s 2nd district in the U.S. House of Representatives since 2013.
“We are deeply saddened by the tragic loss of Congresswoman Jackie Walorski and her two congressional staffers, Zach Potts and Emma Thomson”, Ron Breymier executive director of the Indiana Manufactured Housing Association – Recreation Vehicle Indiana Council said.
The association worked closely with the congresswoman in Washington and during her tenure in the Indiana House of Representatives.
“Jackie was a tireless public servant who cared deeply for her constituents, the State of Indiana, and our nation,” he said. “Jackie was a strong advocate for the RV and manufactured housing industries. She recognized the importance of the jobs created and took pride in promoting affordable housing and recreational opportunities for Americans.”
Vice Chair of the St. Joseph County Republican Party Susan Baxmeyer described the congresswoman as larger than life, possessing an infectious personality that captured attention.
“Congresswoman Walorski was a fierce advocate for her district,” Baxmeyer said. “Never once was she without a smile, or a kind word, or a rousing and inspiring message. She poured her heart and soul into each day’s work.
“And while this district is losing an incredible representative, the bigger loss is that of a loyal friend.”
Walorski served in the state capital from 2004 through 2010 and won again in 2012.
Manufactured Housing Institute Chief Executive Officer Lesli Gooch offered condolences to the families of those involved in the crash, reminding that Walorski and her colleagues dedicated their lives to finding solutions to the challenges that face the country.
“I am so very saddened to hear of the passing of Congresswoman Walorski, her District Director Zachery Potts, and Communications Director Emma Thomson,” Gooch said.
“Congresswoman Walorski was a dedicated and effective public servant and we appreciate her support of manufactured housing as a part of her work to expand the American dream of homeownership to more people,” she said. “Her lasting impact supporting families, workers, and small businesses will be felt by both those she knew personally and the countless others whose lives she impacted through her public service.”
Potts, the driver, 27, was the chairman of the St. Joseph County Republican Party, and Emma Thomson, 28, Walorski’s communications director, were killed in the crash. The fourth fatality was the driver of the other vehicle, Edith Schmucker, 56, of Nappanee, who was traveling alone south on state route 19 just beyond Wakarusa about 12:30 p.m.
Mark Bowersox is the president of MHI, and previously worked for the Indiana association in support of the manufactured housing and RV industries where each industry holds great local value as well as a national presence.
“For years, I witnessed Congresswoman Walorski’s support for manufactured housing, first as an Indiana state lawmaker and then as a congresswoman. She will be remembered by this industry for her unwavering commitment to making the lives of Americans better by helping them achieve homeownership in quality manufactured housing,” Bowersox said. “We will miss her and we extend our deepest condolences to her family and the families of her exceptional staff members who died supporting her important work. We are grateful for their public service and support for the American dream.”
Walorski grew up in South Bend, Ind., and was a reporter for the local CBS affiliate in the middle to late 1980s. She served at Ancilla College as the director of institutional advancement, and as director of membership at the St. Joseph County Chamber of Commerce, director of annual giving at Indiana University South Bend from and then moved to Romania start Impact International, a foundation to provide medical supplies and attention to impoverished children.
Indiana law states it is the charge of local Republican officials to pick a candidate to replace Walorski on the general election ballot. Republican Gov. Eric Holcomb also has the power to schedule a special election for someone to address Walorski’s current term.
Dennis Smith, Affordable Lending Manager for Single-Family Lending and Access to Credit at Freddie Mac.
Manufactured housing currently makes up 9 percent of single-family new home starts — a figure that has steadily declined since its peak of 25 percent in 1996, according to U.S. Census data. While several factors are driving that downtrend trend, a portion is related to zoning regulations at the state, local, and even homeowners’ association (HOA) levels which affect the location and number of homes that can be built.
If manufactured homes were more widely accepted, they could play a role in chipping away at the 3.8 million-unit housing deficit, shrinking the affordability gap and promoting a more equitable housing landscape. A more inclusive approach could make that happen.
Overcoming Misconceptions — and Promoting Benefits — of Manufactured Homes
Compelling Features of Factory-built Homes Make Them a Smart Option for Many Homebuyers:
These dwellings are attractive, energy-efficient, safe, and able to stand up to natural events including inclement weather and fire, as they must comply with the U.S. Department of Housing and Urban Development.
Manufactured homes provide an average cost savings of up to 50 percent compared to their stick-built counterparts, up to $55 per square foot excluding land versus $114.
Construction is precise and efficient thanks to technology and large-scale, factory-based work, and onsite work is less disruptive to the neighborhood as it’s shorter than for stick-built homes.
They are environmentally friendly, as minimal waste remains after construction of a manufactured home.
Mortgages on manufactured homes perform nearly as well as those on site-built homes, and both categories appreciate at about the same rate.
Manufactured homes are often restricted to designated parts of town, subject to stringent regulations including those tied to the age of the house, or banned outright
Standards related to design and building materials make manufactured homes ineligible in certain neighborhoods, while lot-size minimums and parking-space requirements drive up land prices.
Administrative processes and fees also increase cost, risk, and time to market. Moreover, persistent misconceptions about manufactured homes being unsafe, unattractive, a bad investment, and driving down surrounding property values, coupled with negative assumptions about their residents, have kept this category on the fringe in many markets.
Government Support, Industry InitiativesContinue to Move the Needle
HUD has long been a governmental champion of safe, affordable, and well-built manufactured homes. In 2019, the agency hosted the Innovative Housing Showcase, constructing and placing factory-built homes on the National Mall to highlight their features and amenities. States including Arizona, Arkansas, California, Kentucky, New York, and Washington are engaging in proactive approaches to promote their acceptance by relaxing or removing restrictions and encouraging inclusion. Since 1980, Oakland, Calif., has permitted manufactured homes on a permanent foundation in all residential areas. Washington state requires that manufactured homes titled as real property be treated the same as site-built structures.
Incorporating steps like these elsewhere could open the doors to homeownership for more U.S. households. The industry can play an important role in dispelling myths about manufactured homes and promoting their wider adoption, helping move the category forward, by:
Holding regionally focused events where manufacturers and those in the lending ecosystem convene to learn more about design aesthetics and how factory-built homes can fit into local communities, using successful examples from other areas.
Rethinking the way manufactured homes are sold. Placing them in developments versus on retail lots showcases how they organically fit alongside other homes and neighborhood features.
Educating appraisers on best practices when developing the appraisal of a manufactured home.
Encouraging manufacturers to design exterior elements, including roof pitches, garages, porches, and trim, that are as aesthetically pleasing as interior ones. Selecting a low profile or ground-set foundation allows the structure to more closely resemble a site-built home than a pier and beam foundation, widening the appeal to more potential customers.
Freddie Mac has been working to support manufactured housing through Duty to Serve, including growing the volume of manufactured home loan purchases 85 percent between 2018 and 2020, and expanding the types and uses of manufactured homes eligible for financing.
Access the research paper by doing a web search for “Freddie Mac manufactured housing zoning research”.
These and other initiatives are helping to transform the industry and highlight manufactured housing for what it truly is — an affordable and attractive choice for a large swath of homebuyers.
Dennis Smith is an affordable lending manager in the Single-Family Client and Community Engagement division. He manages the affordable housing preservation and manufactured housing initiatives that support Freddie Mac’s underserved markets plan.
It is actually happening. The years or even decades of hard work that our industry has put into educating consumers about the value of manufactured housing is finally paying off. Consumers and even some cities are realizing that today’s manufactured homes are not the mobile homes of the past.
Recently my own neighborhood that used to be full of diverse, hard-working families has landed on the radar of developers and house flippers. Being close to downtown Dallas, and within blocks of a rail system station has made it a perfect target for building large, multi-family structures. It has made us form neighborhood organizations and get involved in city politics, including inviting city planners to come and speak to our group.
When a meeting happened recently, the discussion came up about ADUs and tiny homes. When the city planner started describing them as “mobile homes” I raised my hand and kept it up until I was allowed to speak. I shared how instead of us being forced out of our homes by large developers that wanted to build tall, apartments, townhomes and condos, we had other options. Allowing ADUs or tiny homes in the city limits could be a great alternative along with factory-built cluster homes, or other higher density, single-family options. I always have examples of our homes on my phone and offered to share with and educate anyone interested, including the city council and planning committee. All were interested, and I fielded lots of questions. By the end of the meeting, there was interest instead of a flat no.
With the homes that our industry is building today, we are a viable option for infill and affordable housing, right alongside site-built homes in affordable housing neighborhoods. One of the planners in attendance actually asked what it would take to get more RV or tiny home parks built nearby, and in some areas that is actually happening.
An Industry That Works for the Customer
YES! Communities is in the process of building a new community from the ground up in New Braunfels, Texas. Dwelling at New Braunfels has been designed to not only attract customers that have been familiar with factory-built housing for years, but to be a viable, possibly preferred option for the new and younger customers, particularly the emerging tech workforce in nearby Austin and San Antonio. The Denver-based company hopes to help change the perception of community living by offering a healthier lifestyle with their native wetland plantings, a loop trail, pond, and signature pier. The amenity center clubhouse will be three linked buildings with a modern, simple feel. Designing thoughtful homes and communities based on local preference, not just a national directive, is becoming more important than ever.
State-of-the-art fitness centers, splash parks, golf simulators, pickleball, and jogging paths are some of the ways that communities are encouraging a healthy lifestyle that appeals to today’s community customers. Pride in community, and allowing those customers to know that they are an important part of a community or neighborhood is a vital consideration. Manufacturers and community owners aren’t waiting for the customer to come to them, they are going out into the wider community and meeting potential customers in their own environments.
Innovation and Technology to Meet Needs
Consumers today have a shorter attention span than ever, so it is critical to come up with unique ways to get the information they want as quickly as possible. Clayton Homes is using QR codes in their new MIYO homes that offer a flex space in each home. Instead of relying on the sales team to tell about the features of the homes, customers can quickly scan the code in various areas of the homes. They can then learn by a short video about what is special, or be taken to a page on their website.
Having great photography of your homes is also very important, and having the 3D tours available online is now expected by consumers so they can tour your homes at their leisure instead of having to drive all over town to see a home that they like. This technology has become a lot more affordable, and it is now possible for smaller builders and retail centers to rent the equipment and technology to do this in their own homes.
‘Micro’ is the Buzz
It looks like “micro” might become the buzzword for 2022. Micro kitchens, micro homes, and micro-communities are something that today’s home buyers and renters are Googling, and searching out. Blomberg Appliances is a company that you may not ever have heard of, but you may have used in an apartment, or hotel suite that you have stayed in. Their “micro appliances” could be the perfect fit for today’s smaller homes, and are also ideal for creating cooking and entertaining areas outside of the traditional kitchen space. This company is also very focused on sustainability and recently showed at the Kitchen and Bath Industry Show some very exciting innovations coming to market.
Casata is a new micro home rental community that has purchased land in Dallas and other areas to replicate its success in Austin. The group is about sustainability, community living, and being able to live large in a small space. Its leadership is concerned about the social impact of their community as well as the lifestyle they make available to their customers. Their website shares that their impact focuses on two key pillars: sustainability and the arts.
The community is packed with amenities that encourage consumers to enjoy and share the entire community, not just their personal homes. From dedicated food truck areas, to free live music events, and top-notch concierge services available through their designated app, this design is one to watch. Casata Austin was designed for using factory-built construction of their homes, and they are considering this type of construction for the new communities as well.
Having a walkable, bike-friendly neighborhood has become a priority for many of the consumers looking to buy or rent a new home. This is true not only with the younger buyers, but for the 55+ customers as well. In the last two years, we have realized that the more we can do at home or nearby instead of having to drive everywhere can make a difference in our lives and to the planet.
By being a better neighbor, and welcoming new ideas and innovations into our communities, we can build a better neighborhood and a future that is brighter for all of us.
Fed Chairman Jerome Powell during the July 27, 2022 meeting.
In consecutive meetings now, The Federal Reserve has raised rates 0.75 to help stave off inflation that has reached 9 percent, the highest in decades.
However, atop its report was a hint toward an increasingly positive outlook on the other economic pressures that historically have pushed inflation.
“Recent indicators of spending and production have softened. Nonetheless, job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures,” the Fed stated in a news release.
The Fed’s goal is the guide the economy back down to a standard 2 percent inflationary rate.
“That starts with economic activity… that we need. Of course we’ll be looking at labor market conditions,” Federal Reserve Chairman Jerome Powell said in media and analyst Q&A following the close of the two-day meeting. “Do we see inflationary pressures declining.
“We will make decisions on a meeting-by-meeting basis,” he said.
Powell said a moderate slow-down of the economy is necessary in order to restore price stability that will positively influence long-term hiring and investment. He said the economy is not in a recession, even if recent GDP numbers show a month-to-month decrease. Employment and wages remain strong, for instance, and the latest numbers on orders for durable goods beat expectations of 0.04 percent to achieve 1.9 percent. Those June orders were up 10.9 percent from a year ago, while orders excluding transportation are up 7.2 percent.
“It doesn’t make sense the U.S. economy is in recession right now with these kinds of things happening,” he said.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of their goals. The Committee’s assessments will take into account a wide range of information, including readings on public health, labor market conditions, inflation pressures and expectations, and financial and international developments.
Brian Wesbury, chief economist with First Trust Financial, had this to say following the Fed increase and news on a 0.9 percent dip in GDP.
“Stagflation, yes, official recession, not yet. We understand that people think (and some feel) that this is a recession, but the first half of the year included payrolls growing 457,000 per month, lower unemployment, and industrial production up at 5.0%+ annual rate,” Wesbury stated in a post to newsletter subscribers. “These things don’t happen during recessions and we would not be surprised if at least one of the first two quarters of the year is later revised positive.”
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 19.7 percent annual gain in May, down from 20.6 percent in the previous month.
The 10-City Composite annual increase came in at 19 percent, down from 19.6 percent the previous month. The 20-City Composite posted a 20.5 percent year-over-year gain, down from 21.2 percent in the previous month.
“Housing data for May 2022 continued strong, as price gains decelerated slightly from very high levels,” S&P DJI Managing Director Craig J. Lazzara said. “Despite this deceleration, growth rates are still extremely robust, with all three composites at or above the 98th percentile historically.
“The market’s strength continues to be broadly based, as all 20 cities recorded double-digit price increases for the 12 months ended in May,” he said. “May’s gains ranked in the top quintile of historical experience for 19 cities, and in the top decile for 17 of them.”
However, at the city level there is evidence of deceleration, Lazzara said. Price gains for May exceeded those for April in only four cities. As recently as February of this year, all 20 cities were accelerating.
Tampa was the fastest growing city for the third consecutive month at +36.1 percent, with Miami second at 34 percent growth. Dallas fought its way into the top three with a gain of 30.8 percent. Prices continued strongest in the South and Southeast, both of which recorded 30.7 percent gains year-over-year.
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data, and research, and home to iconic financial market indicators, such as the S&P 500 and the Dow Jones Industrial Average.
About 22 million people live in manufactured homes in the U.S. Last year the industry supplied more than 105,000 new units, the most in more than 15 years. Photo: Pierpont Fields, Morgantown, W.V.
The U.S. Department of Housing and Urban Development on July 19 posted to the Federal Register another slate of changes for manufactured housing, the most robust update to the HUD Code in decades.
The changes include 88 new and updated standards, bringing the HUD Code in line with more recent manufactured housing industry standards, and further improving the quality and safety of manufactured home construction.
“Manufactured homes are an important element of the nation’s affordable housing supply,” HUD Assistant Secretary for Housing Julia Gordon said. “These proposed updates, when final, will help to expand the availability of safe and affordable homes that align with current design trends and construction methods.”
Proposed changes in the rule will facilitate innovation and greater production of manufactured homes with features that are sought-after by consumers and that are common consumer needs for modern living, HUD stated in a press release on the updates.
When final, the updates contained in the proposed rule will enact a significant number of recommendations made by the federally-mandated Manufactured Housing Consensus Committee.
Further, the updates will eliminate the need for manufacturers to obtain alternative construction approvals for frequently requested features and materials that already meet or exceed HUD standards. The proposed updates are available for public comment for 60 days.
Overview of Proposed Rule Changes for Manufactured Housing
Materials that facilitate modern design approaches and improve quality: Updates to reference standards for materials (wood, steel, piping) and products will align with other building standards, will allow the use of more modern design approaches and installation of alternative materials, and will improve the quality and safety of homes for consumers.
Ridge roof designs: Revising definitions and regulatory language will allow certain specified roof ridge designs (peak cap and peak flip roof assemblies) without a requirement for specific on-site inspections by a HUD-approved agency, except for certain exclusions. This type of roof installation is common throughout the industry and uses technology that is time-tested. This will be beneficial for manufacturers and consumers by incorporating more recent design practices into the regulations and eliminating unnecessary inspections and associated costs.
Multi-unit manufactured homes: Proposed changes to regulatory language address multi-unit dwellings, proposing allowance of up to three units while assuring comprehensive fire safety to multi-unit occupants by adding benchmarks and guidelines that meet Manufactured Housing Construction and Safety standards. This may help to further leverage manufactured housing as a means of addressing affordable housing needs.
Open floor plans, truss designs, and specifications for attics: The updated requirements for exterior door separation and structural design requirements will improve allowances for open floorplans while maintaining fire safety, clarify unclear provisions, and allow the potential for optimization of truss design. In addition, the proposed rule will include more clarity regarding structural design requirements for attics.
Accessibility improvements: Modifications to standards for accessible showers will comply with nationally-recognized disability standards for roll-in showers. This will eliminate the need for HUD alternative construction approval and reduce costs and burdens for manufacturers and consumers.
Modern and energy-saving appliances: Updating and adding new standards will allow for the use of more modern and energy-efficient appliances, including gas-fired tankless water heaters, eliminating the need for HUD alternative construction approvals for the use of such appliances.
Additional process efficiencies that save time and reduce costs: Improved language stipulating prerequisites for the process of obtaining installation licenses will increase flexibility for installers; updates to water system piping testing procedures will decrease on-site testing time; and utilization of appliance QR codes for manuals and information will reduce paperwork and bookkeeping.
In January, HUD published proposed rule changes for manufactured homes, that were given an added grace period before going into effect. Those changes, which took went into effect July 12, address data plates, interior passages, stairways, safety alarms, garages and carports, among other considerations.
What is HUD Code?
The National Manufactured Housing Construction and Safety Standards Act of 1974, often referred to as the HUD Code, authorizes the establishment of federal standards for the design and construction of manufactured homes to assure quality, durability, safety, and affordability. Effective in 1976, HUD established the standards, which has worked to transform manufactured homes in quality, safety, durability, and affordability.
HUD standards may preempt state and local laws that do not conform to the HUD standards. HUD’s Office of Manufactured Housing Programs enforces standards directly or through State Administrative Agencies that have partnered with HUD, monitors inspections of factories and retailer lots, regulates installation standards for the homes, administers a dispute resolution program for defects, establishes and collects a fee for each home built, authorizes a certification label to be placed on each section of a home that meets the HUD standards, and pursues a civil or criminal action for violations of the act.
What Does the Manufactured Housing Consensus Committee Do?
The Manufactured Housing Consensus Committee is a statutory Federal Advisory Committee body charged with providing recommendations to the Secretary of HUD on the adoption, revision, and interpretation of HUD’s Manufactured Home Construction and Safety Standards and related procedural and enforcement regulations. The MHCC was also charged with developing and proposing model installation standards to the Secretary of HUD, so HUD could enact model manufactured home installation standards and implement an installation program for the manufactured housing industry. By regulation, HUD also engages the MHCC in the process of revising the Manufactured Home Model Installation Standards and Installation Program Regulations.
How Manufactured Home Appraisals Provide Insights in a Red-Hot Market
By Mark Johnson
Mark Johnson, Datacomp Appraisal
Even casual observers of the U.S. housing market during the last two years have expressed wonder over the rush of movement in all aspects — from consumer preference changes to the increasing pace of sales activity — and lost on no one is the rapidly increasing cost of homes in most markets.
Housing stock has been low for years, particularly in the mid- and lower segments of the market. Prices were rising steadily before the Pandemic, and with a rush of associated locational and lifestyle changes in combination with near-zero interest rates, material shortages, price increases, inventory constraints and creeping inflation, the top line result is red hot home selling prices increasing by 18 percent across the market as a whole in 2021 according to the S&P CoreLogic Case-Shiller Index.
So, in a sizzling housing market, how is a seller certain to know they’re being fairly compensated for their asset? Likewise, how does a lender move forward confidently knowing their investment in a transaction is sound? How can the seller, buyer, and lender increase the likelihood of a successful transaction rather than facing the potential of a canceled deal?
As a nationwide appraiser of manufactured homes, Datacomp relies on three primary tools to help us more accurately determine a fair manufactured home valuation in a hot market:
1. Using the most recent comparables possible, even giving consideration to pending sales that are under contract. This means taking the extra time to make some additional phone calls to the community office, in-park brokers, and local real estate agents who may know of a recent or pending sale.
2. Factoring in a sale date adjustment to reflect the fact that the market has been appreciating and a comparable sale from even three months ago would most likely sell for more today.
3. Placing the most weight on the most recent comparable sale. If the market is appreciating at a high rate then home values can be changing on a weekly basis. Understanding that fact and placing more weight on the most recent sale helps the appraiser properly reflect the current value of the home.
Understanding Manufactured Home Valuation Methodologies
When it comes to the appraisal of manufactured homes for sale in communities or where land is not part of the transaction (chattel), there are two predominant valuation methodologies in widespread use today. One is the cost-based approach, which essentially takes what manufacturers typically charge retailers for their homes, applies a retail mark-up, and then an increase or decrease to that value over time based on broad appreciation and depreciation trends nationwide. This is also commonly known as a “book value”, after the printed guide books for manufactured housing values originated by organizations such as the National Automobile Dealers Association or Kelley Blue Book®.
The second is the market-based approach for manufactured housing, which is based on the actual sales of comparable homes in the market area surrounding the subject property. This is the same approach used in the valuation of conventional, site-built real estate, including manufactured homes where the land is part of the transaction.
In our 35 years of performing manufactured home appraisals, we have had the opportunity to utilize both valuation methodologies through multiple market cycles, depending on the individual needs of the client and subject property.
While both methodologies have specific advantages and compromises, it has been our experience that an appraisal that market-based approach provides the most consistent, reliable values in volatile markets.
In a rapidly depreciating market experienced by our industry several decades ago, the market-based valuation approach was relied on by lenders to avoid overfinancing homes and limiting their rate and severity of loss. The market-based approach provides the same safeguards today in a rapidly appreciating market where buyers’ enthusiasm and emotion may be outpacing value trends in their market.
Sea Air, Rehoboth Beach, Del.
The Advantages of a Market-Based Approach in Volatile Markets
1. The market-based approach considers the specific qualities of each market in determining value.
All housing markets are not created equal. This is true not only of the region and state, but also for the local housing market. It’s like asking, “How much is a three-bedroom home in a nice neighborhood in Ohio worth?” That’s a very difficult question to answer because there are so many variables. Location is everything, and we know that there can be vast differences in housing values from one housing market to another even within the same state, even with identical homes.
2. The market approach does not reply upon assumptions about manufacturer, model, or series.
Listing activity or title data alone is often insufficient because it does not always contain complete information. Title data, for example, often shows only the manufacturer of the home, making it impossible to determine the model or the series. Guessing at the model and or the series can result in the value being seriously over or understated.
3. The market approach is not subject to broad appreciation/depreciation trends.
The millions of manufactured homes in this country consist of thousands of combinations of year, make, model, features and amenities. Each resides in a distinct market or submarket throughout the country. Additionally, many are located in one of the more than 43,000 land-lease communities nationwide, also with their own combination of attributes and amenities that contribute to the value of that location. Is it reasonable to assume that a broad approximation of depreciation and value trends could responsively and accurately reflect the individual market factors of hundreds of MSAs and CBSAs throughout the country?
4. Market-based values tend to have a more consistent relationship to actual selling prices.
When we compare manufactured home values to actual selling prices that are used in a market-based appraisal, it is apparent that there is a very consistent relationship between the two. This is the relationship we would expect since both value and selling price reflect market value most of the time, even under short-term variability. Historically when Datacomp has compared other valuation methods and market-based comparable appraised values to the actual sales price of the home, we noticed a much tighter correlation between the comparable appraised value and the sales price. Other valuation methodologies tended to produce results that differed from the sale price more erratically and to a larger degree.
5. Market-based values accurately reflect the marketplace.
In the late 1990s, Datacomp considered cost-based manufactured home values to be too high. We felt that the high values afforded lenders little protection against loans on homes that were overpriced. Also, the high and inconsistent values created the potential for over-advancing on refi’s. Today the opposite market dynamics are at work, but the market-based valuation methodology continues to be the best tool for understanding the true value of a home.
How to Ensure You Are Able to Get Reliable Valuations in an Evolving Market
Regardless of the strength of the market-based approach, the ability to obtain reliable values within an acceptable timeframe and at a reasonable cost is based on the availability of comps. Everyone wants a smooth transaction with a minimum of delays and unexpected surprises.
At Datacomp, we are fortunate to have a robust database, valued data relationships, and access to the more than $3 billion in manufactured home transactions that pass through the advertising platform of our corporate sibling, MHVillage. Fresh comps, though, are always appreciated.
Whether the market is moving up or down, the simplest thing you can do to ensure the ability of your appraiser to deliver a fair and efficient valuation is to make sure we have recent comps.
As the market has continued to evolve, market dynamics have placed increased pressure on the comp base to accurately reflect these rapidly changing values. Now, more than ever, it’s important to ensure that all of your sales, including cash sales and in-house financed transactions are reported.
If you are a community or retailer, you can easily submit your most recent sales comps using the MHI Community Attributes System website at MHICAS.org. You’ll find links in the navigation sidebar to report new and pre-owned home sales. They can be reported as individual transactions or by downloading a bulk transaction template.
From time to time, you may also receive a phone call from one of our representatives seeking recent comps for your community or market area. We recognize how busy everyone is, and we appreciate you taking the time to assist us.
That next comp you provide just might help make the difference on one of your future deals.
Mark Johnson is vice president at Datacomp Appraisal Services, a leading national inspection and appraisal company that provides value information to manufactured housing professionals. Datacomp has a national network of about 800 field inspectors and does appraisal and inspection work for thousands of lenders, credit unions, insurance companies, private individuals and others interested parties across the country.
A SECO Planning Committee member speaks with an exhibitor at SECO19 in Atlanta, Ga.
Attendees have until July 31 to register for the Early Bird discount and take advantage of the discounted hotel group rate
The SECO National Conference of Community Owners announced today that registration has opened for SECO22.
This year’s conference, which marks the return to a live, in-person format, will take place at Stone Mountain Park in Atlanta, GA, at the Atlanta Evergreen Marriott Conference Resort from October 3 – 6, 2022.
“SECO has always been about making personal connections and fostering education with small to mid-size community owners and managers,” SECO Co-Founder and organizer Spencer Roane said. “We are thrilled to be back in Atlanta this year to continue the tradition in-person and share industry knowledge among fellow professionals.”
Early-Bird Pricing, Hotel Group Booking Rate Available This Month Only!
SECO22 has also announced the return of its “Early Bird” pricing, available only for attendees who register for the event before July 31.
“Once Early Bird pricing is gone, it’s gone for good,” Roane said. “We urge our attendees to register for the event and book their lodging by July 31 to avoid missing out on the best rates for SECO22.”
Attendees who register this month can take advantage of various Early Bird packages, including a VIP package for just $599 that includes full event access, SECO21 and SECO20 event recordings (a $746 value), and several VIP perks including lounge access and an extra gift.
Additionally, SECO22 discounted room rates for the Atlanta Evergreen Marriott Conference Resort end July 31 as well. Attendees can visit secoconference.com/seco22/venue to book their lodging for SECO22 at the group rate of $163 per night. After July 31, room rates increase.
What’s New at SECO22?
By attending SECO22, you’ll get to tour on-site, display manufactured homes to see the latest developments in industry manufacturing, take part in SECO’s first-ever golf tournament and networking roundtables, attend three receptions for entertainment and networking, experience SECO’s first-ever live band at the event, and attend all-time favorite SECO educational sessions to further your industry knowledge.
This year’s event is expected to draw over 500 industry professionals from all over the country.
Now in its 12th year, SECO has been a landmark conference “for community owners, by community owners,” providing the opportunity to learn, interact, network, and shop the latest manufactured housing offerings.
Sponsorship and exhibiting opportunities for SECO22 are also available. Official sponsors for the 2022 event will be seen by industry personnel from all over the US and Canada who are looking for products and services they need. To learn about sponsorship, exhibiting, and advertising opportunities, fill out the form at secoconference.com/seco22/sponsorship or call (470) 894-6052
For more information on SECO22, visit secoconference.com. SECO22 is an industry conference for manufactured housing professionals and is not open to the general public.
About SECO National Conference of Community Owners
The SECO National Conference of Community Owners was founded 12 years ago by a small group of committed manufactured housing professionals and has been held each year near Atlanta. The gathering is dedicated to building an industry environment and culture that looks to share best practices and help form new ideas. SECO, a tax-exempt 501(c)(3) organization, was created for community owners, by community owners. All proceeds go toward planning and programming for the next year’s national gathering. As a nonprofit 501(c)(3) organization, net proceeds fund projects for veterans and first responders living in manufactured housing communities.
Champion Retail Housing, a subsidiary of Skyline Champion Corporation announced that it has reached an agreement with Alta Cima Corporation to acquire Factory Expo Home Centers and associated assets at a dozen Skyline Champion manufacturing facilities across the United States.
“We are excited to welcome the employees of these retail sales centers to the Skyline Champion family and look forward to the continuing collaboration with the Alta Cima team,” Skyline Champion President and CEO Mark Yost said. “This announcement reflects our commitment to elevate the customer experience directly with consumers, and to accelerate the capabilities that benefit all our channel partners.”
Yost said Alta Cima will provide Skyline Champion with ongoing services and support of the home centers following the sale as a way to ensure the continued seamless experience employees and customers have appreciated throughout the process.
Jim Breen is the owner of Alta Cima Corporation.
“Our experienced team of manufactured housing experts are excited to support Skyline Champion’s ongoing success of providing an enhanced and fully complete customer experience for its homeowners,” Breen said.
Skyline Champion Corporation is the largest publicly held provider of manufactured homes in the U.S., with home building facilities, and existing retail efforts that include the operation of Titan Factory Direct.
The company employs approximately 8,700 people, and has nearly 70 years of homebuilding experience now with 42 manufacturing facilities, existing trucking operations, and now an expanded retail network.
Fairview Manor in Millville, N.J., a UMH Properties community.
Datacomp published July 2022 JLT Market Reports for manufactured home communities in Colorado, Delaware, New Jersey, and Wyoming, which include mobile home rent comps, occupancy, and other vital up-to-date data.
JLT Market Reports provide detailed research and information on manufactured home communities in 186 U.S.housing markets. Reports include the latest rent trends and statistics, marketing programs, and a variety of other useful management insights.
Datacomp’s JLT Market Reports are the nation’s #1 provider of market data for the manufactured housing industry. JLT Market Reports are recognized as the industry standard for manufactured home community market analysis.
July 2022 manufactured housing market data published in JLT Market Reports for Colorado, Delaware, New Jersey, and Wyoming include information on 242 “All ages” and “55+” manufactured home communities.
Altogether, the reports from the four states’ manufactured home communities include data representations for 63,189 homesites.
Regional Trends in Manufactured Housing Community Rent and Occupancy
The West region manufactured home communities show a year-over-year 0.7 percent increase in occupancy and a 7 percent increase in adjusted rents year-over-year.
Northeast region manufactured home communities show a year-over-year 0.4 percent increase and a 4.2 percent increase in adjusted rents year-over-year.
What’s in JLT Market Reports?
Each JLT manufactured home community rent and occupancy report from Datacomp has detailed information about investment-grade communities in the major markets. The detailed information includes:
Number of homesites
Occupancy rates
Average community rents, and increases
Community amenities
Vacant lots
Repossessed and inventory homes, and much more
JLT Market Reports also include management insights that rank communities by number of homesites, occupancy rates, and highest to lowest rents. Established reports show trends in each market with a comparison of July 2022 rents and occupancy rates to July 2021, as well as a historical recap of rents and occupancy from 1996 to present date in most markets.
The July 2022 JLT Market Reports for manufactured home communities in Colorado, Delaware, New Jersey, and Wyoming are available for purchase and immediate download online at the Datacomp JLT Market Report website, or they may be ordered by phone in electronic or printed editions at (800) 588-5426.
Each fully updated report for mobile home communities is a comprehensive look at investment-grade properties within a market, enabling owners and managers, lenders, appraisers, brokers, and other organizations to effectively benchmark those communities and make informed business decisions.
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