Manufactured Home Gains Signal Further Market Slow Down
Demand for prefab housing is up and that’s not good. Well, its good for the prefab manufacturers but bad for the real estate industry as a whole. Why?
Prefab homes are 10% to 25% cheaper than traditional “stick-built” homes, not including land. Now, many who missed out on the housing boom are turning to small, prefab Homes as a viable solution to owning their own home. Additionally, as interest rates go up and budgets get squeezed, more and more people will decide to downsize to small homes. Traditionally, the number of prefab units sold have tended to move in opposite directions since the 1970s, but especially since the mid-’90s. Hence, good for the prefab market, bad for the mainstream real estate industry.
Orders for prefab homes continue to flow in from Arizona, Florida, and California, once-hot real estate markets that are cooling. Retired baby boomers on fixed budgets are expected to continue to drive sales in the Sunbelt. Also, the demand in the New Orleans market, resulting from Katrina, should be strong for years to come.
For more information, contact MillionSaverHomes.com a local Las Vegas real estate broker at 702.212.3513
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