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by Len Bonifield
From THE LEDGER, February 26, 2006
We
have excerpted portions of this article that are applicable to Central Florida.
Some of the statistics and dollar values have changed from 2006 due to the
changing economic market, but the overall concepts are still true.
...The apartment market has been impacted by
the ever increasing real estate taxes. This increase has motivated apartment
owners to go condo. This moves many middle income families out of the market as
they can't afford the high cost of the condos. Florida is experiencing a wave of
change in land use of land-lease manufactured home communities, forcing many
senior citizens into the housing market. Employers are finding it difficult to
recruit people to Florida for jobs as police, firemen, school teachers, retail
and the hospitality markets as they can not afford housing on the initial wages
for those jobs.
Where can people go to find affordable
housing? Apartments? Manufactured housing? A HUD Report that uses the Fair
Market Rent Documentation Systems lists apartment rents by geographical areas.
This report lists the fair market rent in Polk County at $571 for a two-bedroom
apartment and $724 for a three-bedroom. Pinellas County is listed with a fair
market value of $838 for a two-bedroom and $1,079 for a three-bedroom. The
question then becomes, can you find an apartment at those prices and the answer
is it is not easy. The march Apartment Finder lists most two-bedroom apartments
in the high $800s to more than $1,000.
Manufactured housing offers a viable
alternative whether the buyer is considering a new home or a resale. Florida has
more manufactured homes than any other state. It has more manufactured home
communities than any other state. This means that there is an excellent resale
market for buyers to consider. There remain many manufactured home communities
with lots available for new manufactured homes.
Quick Fact 2006, a publication by the
Manufactured Housing Institute using nationwide information, listed a
multi-section home with square footage of 1,750 at an average sales price,
including typical installation, at $63,300 for the year 2004. If you increase
that price by 20 percent in 2006 that brings the cost of that manufactured home
up to $75,960. That home could be placed in a land-lease community with a
monthly lot rent ranging from $300 to $500, or land can be purchased in a
Resident Owned Community for prices ranging from $25,000 to $50,000, or it could
be placed on private land. No matter which of these alternatives is chosen, the
home buyer is finding quality affordable new housing.
What about the resale market in manufactured
housing? In Florida it is estimated that there are almost 1 million existing
manufactured homes. The resale market nationally usually ranges from 5 percent
to 10 percent of all existing homes. This means that throughout the state
there exists an excellent resale market in manufactured housing.
A quick review of the real estate section of
a Central Florida newspaper shows that there are excellent buys in resales. One—a
15-year-old, three-bedroom manufactured home in a 55+ land-lease community—listed
at $34,000 partially furnished with a lot rent of $370.
The buying public does not realize the
quality and safety of today's new manufactured homes. Building materials are the
same as those used in site-built homes. Homes are engineered for wind safety and
energy efficiency based on the geographical region in which they are sold.
Properly installed homes can withstand 120-130 mph, 3-second wind gusts in areas
prone to hurricanes. Manufactured homes are among the safest housing choices
available today due to federal laws requiring smoke detectors, escape windows,
and limited combustible materials around furnaces, water heaters and kitchen
ranges.
Yes, there is a crisis in affordable housing
in Florida, part of the solution can be found in the manufactured housing
industry. The new homes offer high quality, flexible floor plans, and are as
safe as or safer than site built homes at affordable prices.
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