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Many manufactured homes are indistinguishable
from their site-built counterparts in construction
and appearance. In California,
approximately 70 percent of new manufactured
homes sold are sited on lots in urban, suburban
or rural neighborhoods. Facilitating this
opportunity are state laws (Government Code
Sections 65852.3 and 65852.4) which allow
manufactured homes to be sited on any residential
lot, providing the home meets local
development standards.
Also, covenants, conditions and restrictions
adopted on or after January 1, 1988, cannot
forbid the siting of a manufactured home on a
residential lot, if the home can meet the same
architectural standards as site-built homes in
the neighborhood. (California Civil Code
Section 714.5)
Many California home buyers site their new
manufactured homes in planned developments
where they typically own the home as personal
property and lease a home site from a corporation
or partnership responsible for maintaining
the community amenities and services, including
security, clubhouses, pools, spas, and common
areas. There are more than 4,900 manufactured
housing communities in California
offering a wide variety of lifestyles. Land lease
fees in California vary by region but they generally
range from $250 to $1500 per month.
A growing number of manufactured homes in
California are being sold in conventional subdivisions,
planned unit developments and condominiums
where the land and home are owned
and financed as real estate.
Today's manufactured homes are growing in
popularity for local governments and redevelopment
agencies for urban in-fill and redevelopment
projects. Manufactured housing is
attractive for this use due to its cost effectiveness
and the ability to design a home compatible
with the local neighborhood that will fit any
lot with relative ease.
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The following projections come with all the normal caveats.
Obviously, trends can take some unexpected changes in the economy and/or
consumer preference. Here's what I see, barring significant changes
in the economy and financing, for 2006:
- Production/Shipments Production of new
manufactured homes in California facilities should increase by
5% to 8,386 units up from 7,987 units in 2005. Shipments, including
shipments into California from neighboring states, should reach
10,460 new homes, down 3.0% from 10,783 homes in 2005.
- Manufactured Homes as Real Estate Responding
to financing trends, some developers and retailers are focusing on
factory built homes (modulars) for their real property projects.
Consequently, manufactured homes sold where the land and home are
owned and financed as real estate, slipped from 34% in 2004 to 31%
in 2005.
As the industry resolves appraisal and financing issues,
the real estate upward trend for manufactured housing will resume
and could represent 32% to 36% of new sales in 2006.
- 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, manufactured 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%
of total sales within five years.
- Features and Trends In trend-setting
California, manufactured homes are available with stucco or wood
siding, roofs of tile or composition shingles, and dramatic windows.
Architectural styling include single and two-story, traditional
ranch, Cape Cod, southwest and Mediterranean. Exteriors can be
designed to be compatible with any local neighborhood.
As local
governments, redevelopment agencies and developers increase their
use of manufactured housing for in-fill projects, we expect to see
a significant increase in craftsman style and multi-unit manufactured
homes with exterior amenities which compliment and enhance the architecture
of older neighborhoods.
We expect the average household size for new
manufactured homes to be more in line with the state’s average
of 2.7 persons for single-family homes as opposed to the 1.9 persons
for the existing manufactured housing stock.
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