Coming off of the volatility of 2020 with the COVID-19 pandemic and the ensuing disruption to almost every industry, it has been hard for even the most seasoned economists to make accurate predictions about what 2021 would look like. But, as we are rounding into the second half of the year, some emerging trends seem to give reliable foresight into what the rest of 2021 will bring to the manufactured home industry.
While it’s hard to believe we’re at 2021’s halfway point, it’s important to look ahead at how the industry will fare during the year’s final months. Fortunately, industry growth is steady, and the future looks promising for quality, affordable homes. Read on for some predictions regarding manufacturing home trends that will affect the housing industry this year.
What Will Impact the Rest of 2021
Following are the factors challenging the housing market as a whole during these final days of 2021.
Materials Costs
It seems you cannot open news or social media feeds without hearing about the soaring price of lumber and other building materials. However, because the homebuilding industry accounts for a large majority of lumber usage, lumber prices generally fluctuate quite a bit due to the disproportion of sawmill capacity to the homebuilding market.
The following factors have all contributed to rising lumber costs.
- Glue shortages
- Lowered plywood production and shortened capacity of the US forest products industry
- Labor challenges
- Lack of truck drivers
- Sawmill shutdowns
Lumber isn’t the only homebuilding material with a price jump either. Other major components like steel, iron, and smaller hardware components all have faced price jumps.
These factors can delay homebuilding projects as well as increase the cost to build. In fact, the rising lumber prices are currently thought to add $36k to a newly built home price. The price increase is highly impactful to the home building industry because wood is used for so many parts of a home, from structural framing to flooring, to doors, windows, and cabinets, to name just a few. This added expense is leading many potential homebuyers to consider manufactured housing.
Fortunately, economists predict that materials prices should begin to come back down, returning to what they were before the pandemic.
New Buyers
Another important component of rising prices is attributed to the influx of people from other states moving to our area. That, combined with a shortage of home inventory, means that those who decide to build new, whether with a traditional or manufactured home, may face fierce competition from our new neighbors. Not only that, but buyers want to buy a home as quickly as possible and not have to wait. For buyers who live in states other than Florida, the shift to video calls and virtual tours makes it possible to make a decision sight unseen more than ever before.
Inventory Shortages
More people are looking for residential homes than houses available, and we especially see that trend across Florida. As more people seek affordable housing solutions, many turn to manufactured housing, particularly as manufactured houses are around half the cost per square footage of those traditionally built. This will be especially beneficial for those who experience financial hardships or layoffs due to the pandemic.
Prestige Is Here For You No Matter What the Future Holds
Even if the economic future frequently seems uncertain, you can always count on Prestige Home Centers to give you the best possible deal on your quality manufactured home as well as continually provide expert advice on what you can expect throughout the home buying process and well beyond. We are on your side through every step of the process. So contact us today to schedule an appointment so we can get started walking alongside you on your path to your dream home.