Manufactured homes are a hot topic in Phoenix this year, with many people wondering how they will fare in the upcoming manufacturing boom.
But it’s not just people who are wondering.
Manufactured home insurers and builders are also getting into the business, and it’s starting to look like the boom could be here to stay.
We spoke to two experts on the industry and one former homebuilder who have both spoken with the press about their expectations for manufacturing in Phoenix.
Here are some key takeaways from our conversation with the experts, along with our picks for what you need read:Manufactured homes:What do you think the demand for manufactured homes will be in Phoenix?
Manufactured home owners can expect to pay more in premiums for a manufactured home than other homeowners in the market, as more and more buyers have purchased and are using those homes as a primary residence.
The premiums will increase as demand increases, said Mark Reichert, president of Phoenix Manufactured Homes.
Manufactured housing is expected to make up around 15% of the market in Phoenix by 2021.
Reicherts prediction for manufacturing growth in the Phoenix area is higher than the national average.
The average manufacturing cost of a manufactured property is $2,566.
The average cost of an average manufactured home in the U.S. is about $1,800, according to a study by the Urban Land Institute.
The cost of manufacturing a manufactured unit has jumped dramatically over the last few years, said Reichers partner David Hines, CEO of Hines Properties, LLC.
Hines Properties said its current price for a new manufactured home is about twice the cost of other comparable properties.
“We’re going to have to go up to the next level to get to $2.5 million a unit, which is a significant price increase, and we’re going go to the second-tier of the industry, where we’re at the second or third-tier,” Hines said.
Hates manufacturing in Arizona.
“You have a lot of people, particularly the people who own the homes, and a lot are going to be buying these manufactured homes as their primary residences.”
But Reiches investment in manufacturing is contingent on the economy of the metro area becoming stronger.
“I think there’s a lot to be optimistic about with the economy,” Reichelts partner said.
“But it really is about what happens with the manufacturing jobs in the metro areas.
And if that’s not happening, there’s going to still be a huge amount of demand for those manufacturing jobs.”
The future of manufacturing in the Valley, including manufacturing in other metro areas, will be decided by the housing market, said Hines.
“And if we don’t see more housing demand increase, the demand will decrease.”
Reichers investment in Arizona is contingent upon the economy.
“We have a very robust housing market in Arizona, and if we’re not seeing an increase in housing demand in the next five years, that’s going be a very significant impact on our market,” he said.
“Manufacturing is very much a diversified business in Arizona,” Hine said.
It’s important to remember that there are many other industries that are looking to enter the business.
“It’s not a new business for us,” he added.
Reid’s prediction for Phoenix manufacturing growth is higher.
“The average manufactured property in the country is about half of what it is in Phoenix,” Reichs partner said, adding that the average cost per unit is about five times the cost in the city.
Reichs investment in the manufacturing industry is contingent in part on the housing markets economy getting stronger.
“There are a lot more people who want to purchase manufactured homes,” Hens said.
Reichets partner and partner of Hine Properties, Hines says the average price for manufactured home inventory is about three times what it was in 2001.
“If we can get to that point in time, we could have a tremendous impact on the market and we could be creating millions of new jobs in Phoenix and the metro.”
The Future of Manufacturing in the Arizona ValleyThe Future will likely be driven by the availability of cheap and accessible manufactured home options, said Jason L. Davis, managing director of Davis Property Group.
Davis Property specializes in the development and leasing of manufactured homes in the central Valley.
“Our goal is to provide the right quality and amenities to our customers and create the right housing market for our clients,” Davis said.
Davis is a principal of Reichet Properties, a company that specializes in development and rental properties in Phoenix, Scottsdale, Prescott, and Tempe.
Davis Property says its goal is for the average home price in the area to rise from $1.6 million to $1 million by 2021, which will result in $4.2 million in annual property tax revenues.
“If the demand is there, the price is going to go higher, and then it’s going do it in a way