Top National News
Pace of U.S. Home Resales Rises to Eight-Month High
Sales of previously owned homes gained 2.6 percent in June, taking the level of activity to its fastest rate in eight months. It was the third consecutive month of improvement documented by the National Association of Realtors, which pegged sales volume at an annual pace of 5.04 million units for June. The latest performance suggests that housing recovery, which lost momentum in the second half of last year due to rising borrowing costs and a dearth of properties on the market, is picking back up again. Mortgage rates have dipped back down a little; the U.S. jobs market is improving; and sellers are putting more properties up for sale. The number of homes on the resale market hit 2.3 million last month — up 6.5 percent from a year earlier and the most since August 2012.
From “Pace of U.S. Home Resales Rises to Eight-Month High”
Reuters (07/22/14) Lange, Jason
Freddie Mac Sees Bittersweet Economic Outlook
Freddie Mac’s July 2014 U.S. Economic Housing Outlook shows that economic results were mixed in the first and second quarters as the housing sector slowed. Residential fixed investment decreased 4 percent in the first three months of the year. Housing starts for June, meanwhile, were off 9.3 percent from May. After adding to economic growth in 2012 and through last year’s second quarter, housing activity has braked to the point where it is no longer the primary driver of economic recovery. The results are not all negative, though. “There is good news to share as we head into the latter half of summer,” according to Freddie Mac chief economist Frank Nothaft. “The multifamily rental market has led the rest of the housing sector into recovery, and about one-third of housing starts in the first quarter were for multifamily rental apartments. There’s no question the single-family recovery is moving slowly, but it continues to doggedly press forward and we are cautiously optimistic.” However, Americans appear less certain. A Rasmussen Reports poll determined that only 19 percent of consumers surveyed rate the U.S. economy positively, while 40 percent rate consider it “poor.”
From “Freddie Mac Sees Bittersweet Economic Outlook”
DSNews (07/22/2014) Templeton, Derek
What Is the State of the Nation’s Housing? A New Report Shows
In its “The State of the Nation’s Housing” report, the Harvard Joint Center for Housing Studies estimates that 40.9 million households were “cost-burdened” — or spending more than 30 percent of their monthly income on housing — in 2012. Despite a decrease of 1.7 million between 2011 and the following year, these households had increased by 9 million in the previous decade. Moreover, “severely cost burdened” households that spent half or more of their income on a mortgage or rent accounted for 5.8 million of that increase. The 2012 decrease was virtually all on the homeowner side. Research shows that more than 25 percent of homeowners are considered cost-burdened and 10 percent severely so. Cost-burdened renters did increase slightly in 2012 — the sixth year in a row — to 20.6 million. Almost 50 percent of those who rent are considered cost-burdened and 17 percent are in the severe category, according to Harvard researchers. Overall, the incidence of severe cost burdens is especially high among minority households: 27 percent of black, 24 percent of Hispanic, and 21 percent of Asian households were considered severely burdened compared to just 14 percent of white households.
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From “Affordability Is the Big Challenge for Housing”
Mortgage News Daily (07/15/14) Swanson, Jann
Industry News
UMH Properties Inc. Buys 4 Manufactured Home Communities in Region
UMH Properties has acquired four Pittsburgh-area manufactured home communities for a total of $12.2 million. The New Jersey-based company declined to give details on the properties, other than to say that they include 336 developed homes and have an average occupancy rate of about 84 percent. Additionally, UMH President Samuel Landy cited the Pittsburgh region’s oil and gas industry as a reason for his firm’s interest in the area. “These communities are in areas where we expect economic growth due to Marcellus- and Utica Shale-related industries,” he remarked. “We believe by making capital improvements and adding rental units we will increase the value of these communities and increase their income over time.”
From “UMH Properties Inc. Buys 4 Manufactured Home Communities in Region”
Pittsburgh Business Times (07/16/14) Schooley, Tim
Southwest Florida’s Murex Properties Acquires Ventura Lakes
Murex Properties is the new owner of Ventura Lakes, an age-restricted manufactured housing community in Punta Gorda, Fla. Through an exclusive affiliation with real estate investor Northwestern Mutual, $19 million was paid for the 273-site, gated community that features a plethora of recreational amenities. “[Ventura Lakes] is one of Florida’s premier communities with a highly landscaped, low-density setting that allows for large lots sited along 17 waterfront cul-de-sacs,” said Murex Properties President Steve Adler. The company, which owns and operates manufactured home communities nationwide, has now acquired three communities in cooperation with Northwestern Mutual.
From “Southwest Florida’s Murex Properties Acquires Ventura Lakes”
Naplesnews.com (Florida) (06/24/14)
Valley State Decides to Buy, Not Rent, Modular Housing
Mississippi Valley State University now intends to purchase modular housing for the campus, straying from its original plan to lease it. School officials expect the university to pay as much as $900,000 for the modular units, which will be occupied by 50 to 150 students while existing on-campus accommodations undergo renovation. They believe Mississippi Valley will save money by purchasing the modular housing, then removing and reselling the units once they are no longer needed.
From “Valley State Decides to Buy, Not Rent, Modular Housing”
Associated Press (07/20/14)
New York Unveils the Homes You Hope You’ll Never Have to Live In
New York City recently offered a peek at the prototype for disaster housing that could be deployed there in the event of a catastrophic storm of the magnitude of Hurricane Katrina. In the wake of destruction that left 1 million people in New Orleans without homes, New York officials launched an international competition to design a better housing response for people awaiting repair of reconstruction of their storm-damaged residences. The goal was to develop housing systems that would provide comfortable, temporary shelter to impacted families while also keeping them as close to their old neighborhoods as possible in order to restore communities and shore up the economy. Locally based winner Garrison Architects — in partnership with American Manufactured Structures and Services — came up with a modular, prefabricated prototype of stackable units that can be craned into place and connected to power and water in little time. The one- and three-bedroom units were constructed by AMSS in Virginia and Mark Line Industries of Pennsylvania, trucked to Brooklyn this spring, and installed in fewer than two days. Each unit includes a living area, bathroom, kitchen, and storage space. The formaldehyde-free housing is built 100 percent with recyclable materials, cork floors, a double-insulated shell, and floor-to-ceiling balcony doors. They also can be fitted with solar panels to alleviate pressure on the city grid and help the units be self-sustaining.
From “New York Unveils the Homes You Hope You’ll Never Have to Live In”
Global Construction Review (07/02/2014) Sweet, Rod
Mobile Home Sales Boom as Boomers Retire
As the population ages, more American seniors are showing an affinity for 55+ manufactured home communities. The market is full of affordable housing that buyers can remodel to suit their own agenda — whether that means an environmentally friendly abode; hip, stylish design; or even multiple residences in different regions, since the homes can be bought at bargain prices. With high availability and low costs, seniors who invest in manufactured homes are able to remain in close proximity to services while subsisting on retirement income. Lot rents as low as $400 per month afford buyers fitness centers, swimming pools, controlled entry gates, and other amenities; and many communities arrange classes and social events to keep residents from feeling isolated.
From “Mobile Home Sales Boom as Boomers Retire”
Monroe Monitor & Valley News (WA) (06/24/2014) Keary, Polly
‘Rebuilding Union Beach’ Helps Displaced Families Return Home After Sandy
Before summer draws to a close, 12 families whose homes were ravaged by Hurricane Sandy will have settled into new, modular residences constructed as part of the Rebuilding Union Beach project. The replacement homes will be raised on pilings to levels that surpass federal flood standards; and they also will feature cement board siding that will keep out water and keep energy costs at bay. A total of 15 families ultimately will benefit from the project, which aims to serve as a reconstruction model while helping bring Union Beach residents impacted by Sandy back home.
From “‘Rebuilding Union Beach’ Helps Displaced Families Return Home After Sandy”
Newark Star-Ledger (NJ) (06/18/14) O’Neill, Erin
NY Building Shows How Mod Design Stacks Up as Cool
Dubbed the Stack, a new, seven-floor structure in Manhattan is being trumpeted as the city’s first multistory, modular apartment building. It aims to show that while stackable apartments can save developers time and money, modular is not synonymous with monotonous. The interiors defy their boxy components with varied floor plans and stylish fixtures. Meanwhile, the world’s tallest modular building, the 32-story “B2” apartment tower, is now being erected in Brooklyn and will boast 363 rental units when completed at the massive Atlantic Yards complex. The Stack’s 28 apartments were formed from 59 modules. Modular construction entails assembling a building from prefabricated sections rather than building from the ground up on-site. It has been around for decades, but interest has grown recently nationwide and in New York City, in particular. Supporters say modular construction can reduce both costs and building schedules, as module factories do not have to be concerned with bad weather.
From “NY Building Shows How Mod Design Stacks Up as Cool”
Associated Press (07/20/14)
