George Allen / EducateMHC Blog Mobile Home & Land Lease Community Advocate & Expert

January 10, 2024

‘Thanks for putting into print what no one else will say out loud!’

Filed under: Uncategorized — George Allen @ 9:18 am

Blog Posting # 775, Copyright 12 January 2024. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable, attainable factory-built housing! And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of manufactured housing! EducateMHC is an online advocate, historian, trend tracker, and text resource for these two related business models! Reach EducateMHC via (317) 881-3815; email: gfa7156@aol.com, or visit www.educatemhc.com, to order Community Management in the Manufactured Housing Industry. This is the sole professional property management text in print today! SWAN SONG is a history of land lease communities & official record of annual MH production totals since 1955; and autobiography, From SmittyAlpha6 to MHMaven – describes personal combat adventures in Vietnam, a 45 year business career in MH and community ownership/management, and as an author & consultant.

George Allen, CPM®Emeritus, MHM®Master, is only emeritus member of the Manufactured Housing Institute (‘MHI’), is an RV/MH Hall of Fame enshrine, a Vietnam veteran & retired lieutenant colonel of U.S. Marines, as well as author/editor of 20 books re MH, communities, business management & prayer.

‘Thanks for putting into print what no one else will say out loud!’

In a manner of speaking, the ink wasn’t dry on last week’s blog posting before responses arrived on my PC. All commentaries have been in support of the straightforward question directed to HUD-Code housing manufacturers who’ve seen, on the average, production of new homes drop by 22 percent year to date (‘YTD’) 2023, and product pricing rising 77 percent between years 2017 & 2022. Here’s the question:

“Are we, as an industry and affordable housing player, more interested in selling fewer new (manufactured) homes at higher prices, OR selling more new homes at lower, atttainable prices?”

That question prompted the title line of this week’s blog posting: ‘Thanks for putting into print what no one else will say out loud!’ And that wasn’t all that’s been penned to this end.

A veteran state MH association executive shared these observations and frustrations. “You are correct about the prices of new MHs staying stubbornly elevated. Many of our members got burned during Covid as prices (of new HUD-Code homes) skyrocketed! Our independent (street) MHRetailers could not adjust the price quoted to their customers, so they had to suffer  lost revenue in many cases! Now manufacturers and retailers feel they can make just as much money selling fewer homes and that is what they are going to do. Working smarter, not harder! Unfortunately, this is not a good long-term strategy, and it will come back to bite us. Today, as I travel the state extolling the virtues of our industry to municipal leaders and others, saying we are ‘affordable’ is no longer my sales pitch, because it may no longer be true if prices do not dome down.”

And that wasn’t all sent my way. Here’re excerpts from yet a particularly savvy state MH association exec. Responding to my list of five – no, make that six, key reasons why new HUD-Code manufactured housing production is down 22 percent this year, he/she writes:

“…the two biggest obstacles the industry faces which were not mentioned in your blog, in blue states, remain trade unions who are the largest contributors to liberal democrat political candidates at all levels, who want to keep factory-built housing out of competition for labor; and HUD itself. HUD hands out Community Development Block Grants (‘CDBGs’) to pretty much every municipality that applies for one, but does NOT require utilization of HUD-Code housing in any of those municipalities (i.e. ‘promoting zoning discrimination’).”

Furthermore, “…next of my list would be the NIMBYs (‘Not in my backyard!’), university-educated socialist urban planners, and local building officials who refuse to trust third party inspections.”

And “Yet another reason production is down has to do with rental homesites in existing land lease communities. Most vacant sites have been filled by ‘new’ corporate owners, who, in the race to get into the (commercial real estate investment) game, paid too much for those communities in the first place.”- and have jacked site rent rates soon thereafter, causing turmoil.

It’s not too late for you to sound-off with your observations and opinions on this timely, albeit controversial topic: ‘Higher prices and fewer houses’ OR ‘lower prices and more houses’? What say you? Gfa7156@aol.com

As I opined last week, it will be interesting to see and hear IF this timely matter is addressed by the State of the Industry panel scheduled to address attendees at this year’s Louisville MHShow, early morning the 17th of January. Hope to see you there!  GFA

About the Louisville MHShow. Yes, I’ll be there and will have updated training and marketing materials with me to distribute FREE to those requesting for them. They are:

  • A plastic 3X5 wallet card with ‘Four Steps to Selling & Financing New Homes On-site Within Land Lease communities’ on one side, & ‘Six Right Ps of Marketing New Homes Within Land Lease Communities’ on the verso side. Also a similar wallet card is availablae for HUD-Code manufacturers selling homes into land lease communities.
  • ‘George Allen’s Investment Real Estate Number Crunching Card’, featuring the cash-on-cash formula, a loan amortization chart, New Rule of 72 – for estimating value of an average land lease community, real estate asset class operating expense ratios (‘OERs’), and How to Use the 3:1 Formula for estimating rental homesite rate, compared with like-size conventional apartments in any local housing market. A real keeper of a card!
  • A handy card describing three texts that should be on-site in every land lease community nationwide: 1) ‘Community Management in the Manufactured Housing Industry’, 2) ‘SWAN SONG’ a history of land lease communities, and my autobiography: 3) ‘From SmittyAlpha6 to MHMaven’. All available via educatemhc.com and archived in the RV/MH Heritage Foundation’s Hall of Fame in Elkhart, IN.

RVs as Affordable Housing

My major business writing project during year 2023, was to research and pen an academic article describing present day and future prospects of recreational vehicles (‘RVs’) as affordable, attainable housing. The finished product, ‘RVs as Affordable Housing’, was submitted to the publisher in October, and I suspect the periodical will be distributed during the first half of year 2024. Once it’s published, I plan to share it in toto with my readership here, and in other RV & MH-related publications, such as ‘Manufactured Housing Review’, our industry’s online trade media.

In the meantime, I continue to read and gather interesting additional material to this end. What I share here is a bona fide observation and prediction about ‘automobile trailers’, from 88 years ago! At that time, neither recreational vehicle (‘RV’) or mobile home (‘MH’) trade terms had  been coined. So here’s the remark from Roger W. Babson’s article ‘We’ll Soon Be Living On Wheels’, quoted from the ‘Los Angeles Times’, in the February 1936 issue of Woodall’s ‘Trailer Travel’ magazine:

“Within 20 years, more than half of the population of the United States will be living in automobile trailers.” Wow! What a prediction! Did it happen? No. But during year 1956, there were 124,300 new mobile homes (oft called ‘trailers’) produced, and an indeterminate number of automobile trailers manufactured for recreational use. But it is interesting to read of the enthusiasm some had, at the time, for this new form of housing. What is sobering, however, as an industry, we haven’t produced that many homes since year 2005 (@ 146,644) and we’re not going to eclipse 100,000 units during all of year 2023! Read carefully: ‘It’s like we’re purposely going backwards and not forward these days!’ Why? Again, that’s the question for which we’re awaiting an answer from our HUD-Code housing manufacturers!

My major business writing project during year 2024? To research and author a comprehensive history of the RV/MH Heritage Foundation Hall of Fame in Elkhart, IN. Part I was penned by the late Dr. Carlton Edwards (a Hall of Fame inductee), covering the period of time between its’ founding in 1972 through 1993. I expect Part II will cover from 1994 on through year 2024. So, if you have information on this historic subject that you’re willing to share with me, let’s start a conversation via email: gfa7156@aol.com

George Allen, CPM, MHM

January 4, 2024

MH HEADED TO THE BOTTOM PRODUCTION-WISE? AH, BUT TO THE TOP, PRICE-WISE!

Filed under: Uncategorized — George Allen @ 10:53 am

Blog Posting # 774, Copyright 5 January 2024. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, affordable & attainable factory-built housing! And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of manufacture housing! EducateMHC is the online advocate, historian, trend tracker, and text resource for these two related business models! Reach EducateMHC by phoning (317) 881-3815l email: gfa7156@aol.com, or visit www.educawtemhc.com, to order Community Management in the Manufactured Housing Industry. This is the sole professional property management text in print today! SWAN SONG is a history of land lease communities & official record of annual MH production totals since 1955; and my autobiography, From SmittyAlpha6 to MHMaven – describes personal combat adventures in Vietnam, a 45 year business career in MH and community ownership/management, and as an author & consultant.

George Allen, CPM®Emeritus, MHM®Master, is only emeritus member of the Manufactured Housing Institute (‘MHI’), an RV/MH Hall of Fame enshrinee, retired lieutenant colonel of U.S. Marines, & author/editor of 20 books re MH, communities, business management & prayer.

MH HEADED TO THE BOTTOM PRODUCTION-WISE? AH, BUT TO THE TOP, PRICE-WISE!

By dint of my personal nature, I am NOT a naysayer (i.e. ‘a person who habitually expresses negative or pessimistic views’ Webster). However, I would not be faithful to my manufactured housing journalist principles if I did not share information in the following paragraphs with you.*1

Between years 2010 and 2021 we saw annual HUD-Code manufactured housing production increase, from just 48,789 units in 2009 to 112,886 during 2022! However, during this year (2023) we’ve seen new MH production decrease, year to date, by 22 percent! We’ll be fortunate, as an industry, to eclipse 90,000 units by year end (2023) when the Institute for building Technology & Safety (‘IBTS’) publishes this data a month from now (i.e. during first week of February 2024). *2

So, why are we languishing this year? Three blog postings ago (i.e. #771 on 15 December 2023) I shared my observations on this very matter – in End Note # 3. Specifically,

“Some say 1) lack of easy access to ‘home only’ loans (a.k.a. personal property or chattel financing) & presently high interest rates, 2) pandemic era high prices on scarce building components & lack of available labor, 3) local regulatory barriers to all forms of affordable housing, 4) too few MH housing sales centers, a.k.a. independent (street) MHRetailers & ‘company stores’, and lately, 5) challenges working with local permitting and engineering authorities, even when land planning and zoning boards approve and desire development of raw land into land lease communities and subdivisions.”

Well, seems I missed an observation (i.e. #6): the increasingly high prices of new HUD-Code manufactured homes; ‘increasing more than site-built homes’! 

Here’s what the Manufactured Housing Institute (‘MHI’) had to say on the matter in a communique to members on 4 January 2024. Remember, as you read, the majority of MHI’s operating funds come from their HUD-Code housing manufacturer members:

“The (Lending Tree) analysis found the average sales price of new manufactured home rose by 77.1% between 2017 & 2022, while the average sales price of new site-built, single-family homes, excluding land, rose by 46.7% over the same period. The average cost for a new manufactured home was $127,300 in 2022 while site-built homes sold for an average of $430,808.”

And here’s MHI’s explanation of that observation. “While many of the media reports focus on the overall difference in the percentage increase between manufactured and site-built homes, in real dollars manufactured homes cost an average of $303,508 less than new single-family homes. Additionally, many of these stories have focused on luxury developments in high-cost-of-living areas that do not represent the average American homebuyer.”

Be that as it may, WHY did the average sales price of new manufactured homes rise by 77.1% between 2017 & 2022? So far I’m not hearing or reading any plausible explanations relative to this question. Have you? We’ve been down this road before, several times. Frankly, it appears, as an industry, we’re clearly pricing ourselves out of our widely acclaimed affordable (i.e. some say ‘attainable’) housing market. Is this due to profiteering, greed, or what? We should remind ourselves of philosopher George Santayana’s famous quote: “Those who cannot remember the past are condemned to repeat it.”*3

In the meantime, we’re well on our way to a trend characterized by production of a marginal volume of new HUD-Code homes, stuck at or slightly below or above 100,000 new MHs per year, – versus 579,940 new ‘mobile homes’ in 1973, & 372,943+/-  new manufactured homes in 1998. At the very same time we’re jacking the average sales price of our new MHs. This puts forth the pithy question: ‘Are we, as an industry and affordable housing player, more interested in selling fewer new homes at higher prices, OR selling more new homes at lower prices?’

Wonder if this timely trend – no, question, will be covered by state MH association execs addressing attendees at the Louisville MHShow the morning of 17 January 2024; specifically, the ‘State of the Manufactured Housing Industry’. Will you be present? I hope to be. Let’s ask for answers to the above question! For more information on this sensitive subject, read the EducateMHC ‘MHShipment Volume @ November 2023 & Stock market Report @ 3 January 2024’. Available for the asking via gfa7156@aol.com

End Notes.

  1. Principles of Journalism: Report the facts, check resources, and be understood via plain writing style.
  • IBTS = HUD’s MH scorekeeper. It’s where HUD, MHARR, MHI, and EducateMHC subscribe, to receive this MH production data, month by month.
  • George Santayana, ‘The Life of Reason’, vol. 1, 1905, p.284

UMH PROPERTIES CONTINUES TO IMPRESS

Simply put, ‘UMH Properties celebrates its 55th anniversary at the New York Stock Exchange on 10 January 2024. Congrats to Eugene, Sam, and the rest of their land lease community portfolio team!

George Allen, CPM, MHM

December 28, 2023

LAST WEEK = CRE; THIS WEEK = HOMEBUYERS/RENTERS

Filed under: Uncategorized — George Allen @ 10:27 am

Blog Posting # 773, Copyright 29 December 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, affordable & attainable factory-built housing! And, land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC is the online advocate, historian, trend tracker, and text resource for these two related business models! Reach EducateMHC by phoning (317) 881-3815; email: gfa7156@aol.com, or visit www.educatemhc.com, to order Community Management in the Manufactured Housing Industry. This is the sole professional property management text in print today! SWAN SONG is a history of land lease communities & official record of annual MH production totals since 1955; and my autobiography, From SmittyAlpha6 to MHMaven – describes personal combat adventures in Vietnam, a 45 year business career in MH and community ownership/management, and as author/consultant.

George Allen, CPM®Emeritus, MHM®Master, is only emeritus member of the Manufactured Housing Institute (‘MHI’), an RV/MH Hall of Fame enshrinee, retired lieutenant colonel of U.S. Marines, & author/editor of 20 books re MH, communities, business management & prayer.

LAST WEEK = CRE; THIS WEEK = HOMEBUYERS/RENTERS

Last week I shared ‘What to Expect During Year 2024’, where commercial real estate (‘CRE’) &

investing is concerned – quoting from Real Estate Forum magazine. This week I’m quoting from

a Newsmax (January 2024 issue) magazine article penned by David Patten and titled,

‘Skyrocketing Mortgages Drive Homebuyers Out of Market’. Pp. 16 & 17. Spoiler Alert: Not the

sort of news one likes to hear heading into a new year!

“Extraordinary news arrived in the closing weeks of 2023: Nearly 34 percent of all home sales

were cash deals without mortgage loans. (This) meant buyers were spending big bucks to buy

homes and investment properties.”

“Between January 2021 and September 2023, Federal Reserve data shows interest payments

for a median-priced mortgage rose from $8,500 to over $24,300 – a staggering 285 percent

increase.”

“Goldman-Sachs analysts predict a 4 percent decline in housing starts this year. Sales of

previously owned homes will fall to their lowest level since the early 1990s….” And…

“New housing starts for single-family homes fell to a three-year low, dropping 11.3 percent

compared to July.” Meanwhile, new HUD-Code housing production, year to date (‘YTD’),

dropped 24 percent and is not expected to improve. This will likely be a seven year low, with

85,000 units produced during 2023, compared to 81,136 during year 2016. How low can we go?

Well, in year 2009 we produced only 48,789 new HUD-Code manufactured homes.

“Higher mortgages, of course, tend to force consumers to rent instead. But they might not find

much relief there these days. The double whammy of inflation and high demand is forcing

rental costs up as well.”

“Rental costs approached record levels in September – at over $2,000 a month, according to

Redfin and Rent.com Compare that to as recently as (year) 2000, when the average new rental

went for $1,499 a month.” How’s that compare with rental homesite rates in land lease

communities? Well, using the traditional 3:1 ratio, land lease community site rent in year 2000

would have been in the neighborhood of $500/month; today that figure has escalated to

approximately $666/month; and in communities owned/operated by aggressive portfolio

‘players’, expect today’s rate to be closer to $1,000/month.

So, there you have it, over a two week period of time; what to expect in the CRE world during

year 2024, and what to expect where land lease communities are concerned.

OPERATION PINEAPPLE EXPRESS

Were you, like me, disgusted with the way our nation pulled its’ military forces out of

Afghanistan during mid-2021? We abandoned tens of millions of dollars in equipment,

weapons, and related material. We also abandoned Afghani interpreters and special forces

operators who’d worked side-by-side with U.S. troops for years – leaving them to certain death.

I remember hearing, at the time, how private individuals and NGOs (non-government

organizations), mostly former military-related, clandestinely rescued hundreds of their

comrades-in-arms, along with their families – but I never knew the full story, until now.

The recently released 400 pages book, ‘Operation Pineapple Express’ by Lt. Col. Scott Mann

(now retired) tells Incredible Story of a group of Americans who Undertook One Last Mission

and Honored a Promise to Afghanistan.’ And this story is told nowhere else!

“In April (of 2021) an urgent call was placed from a Special Forces operators serving overseas.

The message: ‘Get Nezam, one of the Afghan National Army’s first group of American-trained

commandos, out of Afghanistan now.’ The message reached Nezam’s former commanding

officer, retired Lt. Col. Scott Mann, who can’t face the idea of losing another soldier in the long

War on Terror. He sends out an SOS to a group of Afghan vets (Navy SEALs, Green Berets, CIA

officers, USAID advisors). They all answer the call for one last mission.”

What happened? “Operation Pineapple Express is a true story that reads like a thriller – and

along the way, proves that guts and resourcefulness and honor did not vanish with America’s

Greatest Generation.” Steven Pressfield, author of ‘Gates of Fire’ & ‘The War of Art’.

Scott Mann established an informal, unofficial headquarters for Operation Pineapple Express,

and for several months, raised funds, and pulled together resources and personnel needed

to get hundreds of wartime comrades out of Afghanistan. The book is a day by day account of

what happened, in the eyes of the commandos and families being rescued from Afghanistan,

as well as the men and women manning Operation Pineapple Express. And surprising to me,

anyway, was the copious amount of color photographs supporting the narrative. A great ‘read’

for anyone with an interest in U.S. and military history.

Thanks to the organizers of the annual SECO conference in Atlanta, GA., I got to meet Lt. Col.

Scott Mann at their event this past fall. I find it interesting that no other national MH-related

gathering honors our military in this fashion. And it is one of the few, that I know of, national

conferences where, at the very beginning of the program, everyone stands and repeats the

Pledge of Allegiance to the American flag. We need this to happen more often in our industry!

George Allen, CPM, MHM

December 21, 2023

What to Expect During Year 2024

Filed under: Uncategorized — George Allen @ 10:28 am

Blog Posting # 772, Copyright 22 December 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, affordable & attainable factory-built housing! And, land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC is the online advocate, historian, trend tracker, and text resource for these two related business models! Reach EducateMHC by phoning (317) 881-3815; email: gfa7156@aol.com, or visit www.educatemhc.com, to order Community Management in the Manufactured Housing Industry. This is the sole professional property management text in print today! SWAN SONG is a history of land lease communities & official record of annual MH production totals since 1955; and my autobiography, From SmittyAlpha6 to MHMaven – describes personal combat adventures in Vietnam, a 45 year business career in MH and community ownership/management, and as author/consultant.

George Allen, CPM®Emeritus, MHM®Master, is only emeritus member of the Manufactured Housing Institute (‘MHI’), an RV/MH Hall of Fame enshrinee, retired lieutenant colonel of U.S. Marines, & author/editor of 20 books re MH, communities, business management & prayer.

What to Expect During Year 2024

A different perspective this time around. The December 2023 issue of ‘Real Estate Forum’ magazine featured an article titled ‘2024 VISIONS’. What attracted my attention was how closely the writer’s (Erik Sherman) prescient views of commercial real estate (‘CRE’) apply to the land lease community component of HUD-Code manufactured housing. See if you agree.

Here’re comments, taken out of context, from said article (pp.9-12), to underscore what many of us already realize is happening where our unique income-producing property type is concerned. For some, if not many, this will be a ‘wake up’ call.

“CRE pros are being much more careful and circumspect now.” The only certainty being uncertainty. Yet,

“…the private market is still overpriced.” A seller’s market continues. I know owners/operators who are not selling, simply to protect their homeowners/site lessees from predatory buyers and their high-priced salaried executives or ‘hired guns’. That’s putting resident relations before profiteering!

“…the 30-year bull run is over” where loan originator interest rates are concerned. Furthermore,

“..We’ve enjoyed cheap money for a very long time, but it’s led us to a lot of pricing perhaps that was reliant on that cheap financing.”  I wouldn’t even say ‘perhaps’; it’s a fact.

“…most banks are pretty much out of the lending business.” And we’ve certainly seen this before, e.g. circa 2007-2009.

Uh Oh! “…CRE loan values could drop in the face of falling property valuations, cutting asset values and making it harder to cover further worried (bank) withdrawals.” Another great shakeup on the way?

As “…defaults, workouts, and special servicing are all on the rise….” These are not fun experiences!

“There are more distressed situations and transactions happening because of the way projects were structured because of floating rate debt or even pressure from equity partners to get a faster exit.” And then there’s this…

“…signs of a secret distress market – increased bank CRE charge-offs and higher levels of distressed CRE loans – largely being handled privately and that has not broken out into a fully obvious run on distressed properties.” Yet

“…wake up to higher interest rates and to much higher costs of operating your property, and values are getting impacted. It’s a difficult time to navigate.”

Furthermore, “Credit card debt is at an all-time high and credit card and auto loan delinquencies are on the rise.” Not a CRE observation, but another leading indicator of trouble ahead.

In conclusion, “Consumers had built-up liquidity from Covid, but estimates, including from the Federal Reserve Bank of San Francisco, suggest that is likely gone. Not what you want to see when you’re hoping to avoid a recession, but consumer spending is 68 percent of GDP (gross domestic product).”

REPUTATION

“A man’s reputation is not in his own keeping. It lies at the mercy of the profligacy of others.” William Hazlitt. Profligacy here, meaning ‘reckless extravagance’ of reputation distribution.

If you recognize that quote it’s because you read it at the beginning of a personal memoir of mine titled ‘Got Rep?’ In it I describe my first civilian job as a lumber yard supervisor in Pennsylvania. During an informal going-away party with my work crew, before I relocated to Indiana, I learned of my reputation as a stone cold killer in Vietnam, wielding a Kbar fighting knife. Not true, but that was my ‘rep’, thanks to a Vietnam veteran on that crew.

Point? Protect your reputation, be very careful with it. Why? Because it could emerge publicly, deserved or not, at the most inconvenient of times, for good or bad. Frankly, I’ve see it happen time and again in this industry. And I have reason to believe more missteps may be on the horizon….

Examples.

There have been individuals, over the years, who cultivated (unknowingly or purposely?) a rep for offering whatever price a community seller wanted; then, just before ‘closing’ demanding to renegotiate, even threatening to walk away from the deal. These individuals earned reps as pariahs (‘outcasts’) in our real estate asset class.

Then there are the contemporary real estate investors who overvalue and overpay for land lease communities; then, soon after ‘closing’ jack rents and add ancillary fees paid by homeowners/site lessees. The only ‘winners’ being the sellers and maybe the acquisition firm(s). Time will tell, but that ‘rep’ is already out there, demoralizing folk, and giving rise to landlord/tenant legislation.

Poor operators. At times they seem to be everywhere, and manifest their bad reps in various ways. One New England operator, when asked about the abundance of potholes in his streets, crowed: “Well, at least they slow down traffic!” Another operator waives rental payments and late fees in return for sensual favors. And there’re operators who blatantly discriminate in accords with personal prejudices, in violation of Federal Fair Housing law. Don’t forget the ‘slumlords’ who allow their properties to become eyesores, prejudicing local housing market ‘city fathers’ against new raw land development as land lease communities. And the list goes on…

Yes, there’re more. Like would be trade publishers who drive away writers – and readers. Lenders who burden borrowers and community operators with questionable contract terms. Trade advocacy entities with tunnel vision where across-component issues are concerned, even differing in the reporting of key statistics (i.e. ‘Who to believe?’).

Again, you only have your personal, and at times corporate, reputation to accompany you through your business career. You really don’t want to have peers blackball you, local chambers of commerce shun you, and or state and federal legislators and regulators cast you in a negative light in public and the press. A final example. Recently, on LinkedIn, a land lease community portfolio owner/operator being honored by a trade publication for the firm’s positive work in a particular function area (i.e. Good Rep!), turned-off the Comments feature on that site. (i.e. Fearing a Bad Rep?). So, be careful to cultivate a Good Rep whenever and wherever possible!

FOUR

I bought five copies of the novel ‘FOUR’ as Christmas presents for family members and business friends. With each copy I enclosed this explanation: ‘Why am I gifting you FOUR?’ Here’re some of the reasons cited:

The author, Charles (‘Chuck’) Irion is a longtime business acquaintance and friend in the manufactured housing business out in Arizona. He’s also an artist, world traveler, philanthropist, and adventurer. He’s authored 12 novels in two series: Murdered by Gods, and Summit Murder Mysteries. His five non-fiction books cover remodeling, autograph collecting, used car sales, and divorce, plus a humorous cookbook titled, ‘Roadkill Cooking for Campers’.

FOUR is a standalone ‘men’s mystery & adventure’ novel, and in my opinion, is his very best work to date. (I’ve read them all.) Here quoting from the Amazon book order website:

“FOUR means death for us all. In many Asian cultures, the number four (‘4’) is considered unlucky because the ‘word’ for the number four, and ‘word’ for death, are the same!”

In FOUR, “Forces are in motion around the world. FOUR people have FOUR days to prevent World War FOUR and save the world from destruction.”

Introducing one of those four primary characters: “There was nothing but blue sky above and blue sea below, and from where Colonel George Allen was sitting, it was a little hard to tell the difference. He let his gaze roam the expanse, not really looking at anything in particular, but savoring the experience and the memories it brought. Twenty-odd years ago, this would have been the view from the cockpit window of his F/A-18C Super Hornet, and not merely a high-def projection transmitted back to the Virtual Combat Center – VCC – aboard the USS Enterprise CVN-80-a Gerald R. Ford-class aircraft carrier where Allen Lived the experience vicariously.” Pp. 31 & 32. Chuck wrote me into his latest novel, in recognition of the editing and writing advice we’ve shared these past several decades.

Finally; for clarification, the time frame of FOUR is year 2045, some 22 years into the future, and after World War III, 20 years ago.

The only things I’ll add here, encouraging you to order this 362 page book, are notes I penned to Chuck, as one writer to another: Like the short chapters, the believable albeit futuristic ‘tech talk’ throughout, and your good feel for military hardware and its specialized use. Good character development, right-on descriptions of life aboard ship and ‘on the run’, and exciting active plot development.

Hope you enjoy the ‘read’!                                                                George Allen, CPM, MHM

December 13, 2023

Manufactured Housing’s Conundrum

Filed under: Uncategorized — George Allen @ 9:25 am

Blog Posting # 771, Copyright 15 December 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, affordable & attainable factory-built housing! And, land lease communities, (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC is the online advocate, historian, trend tracker, and text resource for these two related business models! Reach EducateMHC by phoning (317) 881-3815; email: gfa7156@aol.com, or visit www.educatemhc.com, and to order Community Management in the Manufactured Housing Industry. This is the sole professional property management text in print today! SWAN SONG is a history of land lease communities & official record of annual MH production totals since 1955; and my autobiography, From SmittyAlpha6 to MHMaven – describes personal combat adventures in Vietnam, a 45 year business career in MH and community ownership/management, and as author/consultant.

George Allen, CPM®Emeritus, MHM®Master, is only emeritus member of the Manufactured Housing Institute (‘MHI’), an RV/MH Hall of Fame enshrine, retired lieutenant colonel of U.S. Marines, & author/editor of 20 books re MH, communities, business management & prayer.

Manufactured Housing’s Conundrum

(‘a riddle; hard question’)

Without land cost, the average HUD-Code manufactured home today costs $127,300 and average new single floor site-built house costs $430,808.*1

The Conundrum. In light of the previous paragraph, and our nation being in the midst of a perennial national affordable housing availability crisis, how can HUD-Code manufactured housing prices, up 77 percent between years 2017 & 2022, experience manufactured housing production down 24 percent year to date (‘YTD’) 2023???*2

WHY? I don’t know the answer to that question.*3 That conundrum is the very reason I proposed, months ago, our manufactured housing industry leaders should be discussing this matter among themselves, and including entrepreneur business people who have vested interests in this industry and realty asset class in the conversation! Is this happening? Not that I know of! IF it’s happening within the confines of national advocacy trade group gatherings (i.e. MHARR & MHI), it’s not apparent to those of us on the outside and wondering what the future holds for us.

A suggestion. Perhaps the meeting planners and hosts of the upcoming Louisville MHShow (17-19 January 2024) would plan a public session where this conundrum is front and center! Several key individuals could be tapped to prepare in advance, brief personal or corporate reasons and solutions to this conundrum. Distribute these position papers at the door, then publicly discuss during said session. Who to invite? Heads of MHI & MHARR, as well as top executives of the ‘Big Three C’ HUD-Code manufacturing firms: Clayton, Skyline-Champion, & CAVCO. Limit each presenter to five minutes of explanation, followed by five minutes of controlled, moderated discussion; ending with a ten minute summation by the moderator. That’s one hour’s time to get our industry’s conundrum out into the open and, hopefully, stimulate action and resolution!

What do you think? If you agree with this suggestion, and are a member of either or both national advocacy groups cited above, reach out to them and suggest they encourage the Louisville MHShow organizer/host get started on this right away!

End Notes.

  1. According to the U.S. Department of Housing & Urban Development (‘HUD’), U.S. Census Bureau Manufactured Housing Survey (‘MHS’), and Survey of Construction (‘SOC”)
  2. Information from a Lending Tree Survey dated 12/23
  • Some say 1) lack of easy to access ‘home only’ loans & presently high interest rates, 2) pandemic era high prices on building components & lack of available labor, 3) local regulatory barriers to all forms of affordable housing, 4) too few housing sales centers, a.k.a. independent (street) MHRetailers & ‘company stores’, and lately, 5) challenges working with local permitting and engineering authorities, even when land planning and zoning boards approve development of raw land into land lease communities and subdivisions.

Where Were You in 1968?

Me? During most of year 1968 (April through December), I was a young U.S. Marine lieutenant in the Republic of Vietnam. I share those adventures in my autobiography, ‘From SmittyAlpha6 to MHMaven’. (Google: From SmittyAlpha6 to MHMaven, & tap the educatemhc.com prompt)

Well, there’s a new book about to debut (January 15, 2024) covering that timeframe. It’s Rick Robinson’s ‘1968: A Primer for Understanding Baby Boomers’. I’ve already ordered my advance copy from amazon.com You’re probably already aware that Robinson is an accomplished and popular novelist (Think ‘Opposition Research’), besides being a primary resource at manufacturedhomes.com

Here’s what the book press release has to say about Rick’s book: “…a small-town deep-dive into one of the most significant and controversial years in American history. Vietnam, the assassinations of Martin Luther King, Jr., and Bobby Kennedy, civil rights protests at home and abroad, Nixon versus Humphrey, all made 1968 a seminal year. It offers a lens of understanding how this year helped shape not only baby boomers but all generations that followed.”

December 7, 2023

An Exciting Personal ‘Read’ & Holiday Gift!

Filed under: Uncategorized — George Allen @ 8:14 am

Blog Posting # 770, Copyright 8 December 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, affordable & attainable factory-built housing! And, land lease communities, (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC is the online advocate, historian, trend tracker, and text resource for these two related business models! Reach EducateMHC by phoning (317) 881-3815; email: gfa7156@aol.com, or visit www.educatemhc.com, and to order Community Management in the Manufactured Housing Industry. This is the sole professional property management text in print today! SWAN SONG is a history of land lease communities & official record of annual MH production totals since 1955; and my autobiography, From Smittyalpha6 to MHMaven – describes personal combat adventures in Vietnam, a 45 year business career in MH and community ownership/management, and as author/consultant.

George Allen, CPM®Emeritus, MHM®Master, is only emeritus member of the Manufactured Housing Institute (‘MHI’), an RV/MH Hall of Fame enshrinee, retired lieutenant colonel of U.S. Marines, & author/editor of 20 books re MH, communities, business management & prayer.

An Exciting Personal ‘Read’ & Holiday Gift!

Charles (‘Chuck’) Irion is a longtime business acquaintance and friend in the manufactured housing business, brokering and managing land lease communities in the Southwest. He is also an author, world traveler, philanthropist, and adventurer.

Chuck has authored 12 novels in two series: Murdered by Gods, and Summit Murder Mysteries. His five non-fiction books cover remodeling, autograph collecting, used car sales, and divorce, plus a cookbook titled, ‘Roadkill Cooking for Campers’.

His recent release, ‘FOUR’ is a standalone ‘men’s mystery & adventure’ novel; and in my opinion, is his very best work to date! Quoting here from the Amazon book website:

“FOUR means death for us all. In many Asian cultures, the number four (‘4’) is considered unlucky because the ‘word for number four, and ‘word’ for death, are the same!”  So, in FOUR,

“Forces are in motion around the world. FOUR people have FOUR days to prevent World War FOUR, and save the world from destruction.”

One of the FOUR people driving this tale? “There was nothing but blue sky above and blue sea below, and from where Colonel George Allen was sitting; it was a little hard to tell the difference. He let his gaze roam the expanse, not really looking at anything in particular, but savoring the experience and the memories it brought back. Twenty-odd years ago, this would have been the view from the cockpit window of his F/A-18C Super Hornet, and not merely a high-def projection transmitted back to the Virtual Combat Center – VCC – aboard the USS Enterprise CFN-80- a Gerald R. Ford-class aircraft carrier where Allen Lived the experience vicariously.” Pp. 31 & 32. This book is set 20 years into the future, 20 years after WWIII.

Irion drives his stories with action and intrigue, not sex scenes and profanity. A terrific ‘read’ or gift, and available via Amazon.com  I’ve purchased five copies for family members and friends.

Getting Down to Business!

As MHI, MHARR, and EducateMHC, point out, the annual production of new HUD-Code manufactured homes continues on a downward slide! Through October 2023, our YTD production is down 24 percent from a year ago! MHI’s ‘seasonally adjusted annual rate’ (a.k.a. ‘SAAR’) also continues its’ downward trend, dropping from a 97,919 estimate in September to 97,919 through October. And EducateMHC estimates the ‘end of year’ SAAR to be in the neighborhood of 86,000 new HUD-Code homes to be produced during all of year 2024. ‘Ugh!’

With that gruesome (‘horribly repulsive’) foretelling, it’s encouraging to hear and read of individuals within MH, and among land lease community owners, who’re experiencing ‘good times’ and or expect year 2024 to be better, far better, than what we endured during year 2023. This from Amy Bliss, executive director of the Wisconsin Housing Alliance:

“Merry Christmas to you and your family as well George! Things are looking up in Wisconsin. We have a good deal of development being planned and hopefully (it) will come to fruition within 2024 or early 2025. First time we have heard of such talk, but the time is right because we need a lot of housing here, and people are starting to accept us (i.e. manufactured housing & communities) as a solution. I am feeling positive about the next couple years.” ‘Hoorah!’

So, make it a point to climb aboard the optimistic wagon of manufactured housing performance, and plan now to attend the annual Louisville MHShow, 17-19 January 2024! While I deferred (i.e. postponed) planning and hosting an industrywide meeting (to ID and discuss sensitive industry issues) at this seminal event, I – and many others, plan to be present to see and buy new manufactured homes and interact with our peers from throughout the U.S.

And, while you’re at it, mark your personal planning calendar with the date 9-12 September 2024. These are the dates for SECO 24, at the Renaissance Waverly Hotel in Atlanta, GA.

George Allen, CPM, MHM

November 30, 2023

TROUBLING STATS!

Filed under: Uncategorized — George Allen @ 8:23 am

Blog Posting # 769, Copyright 1 December 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, affordable & attainable factory-built housing! And, land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC is the online advocate, historian, trend tracker, and text resource for these two related business models! Reach EducateMHC by phoning (317) 881-3815; email: gfa7156@aol.com, or visit www.educatemhc.com; and to order Community Management in the Manufactured Housing Industry. This is the sole professional property management text in print today! SWAN SONG is a history of land lease communities & official record of annual MH production totals since 1955; and, my autobiography, from SmittyAlpha6! to MHMaven – describes personal combat adventures in Vietnam, a 45 year business career in MH and community ownership/management, and as author/consultant.

George Allen, CPM®Emeritus, MHM®Master, is only emeritus member of the Manufactured Housing Institute (‘MHI’), an RV/MH Hall of Fame enshrinee, retired lieutenant colonel of U.S. Marines, & author/editor of 20 books re MH, communities, business management & prayer.

TROUBLING STATS!

According to HUD, and published in the September/October 2023 issue of ‘Affordable Housing Finance’ magazine, on page # 10:

“8.53 million renter households, during 2021 (last year data available) were identified as being ‘worst case needs’. These households have incomes at or below 50 percent of the area median income (‘AMI’), do not receive government housing assistance, and pay more than half their income for rent, or live in severely inadequate conditions, or both!”

&

According to the Federal Housing finance Agency (‘FHFA’), “U.S. house prices rose 5.5 percent between the third quarter of 2022 and third quarter of 2023.” & “U.S. house price growth continued to accelerate in the third quarter, appreciating more than in each of the previous four quarters” – according to Dr. Anju Vajja, FFHA’s associate director of research and statistics.

MANUFACTURER FOCUS ON LAND LEASE COMMUNITIES

The ‘CAVCO Launches a National Community Sales Team’ headline in the Louisville MHShow issue of MHInsider magazine is Old News & New News. Old News because ‘manufacturer emphasis on in-land lease community new home marketing and sales’ began way back around 2010 (the year after MH hit its’ nadir level of production @ only 48,789 units), when Steve Quick of (then) Fleetwood Enterprises – since acquired by CAVCO, created a CD directory of his firm’s plants and the lines of homes they produced. This so land lease community owners/operators could direct order new homes from plants that serviced their marketing area. Also, Skyline-Champion and Clayton Homes have focused on land lease community marketing now for more than a decade. New News, because this is indeed a novel focus for CAVCO Industries. According to the MHInsider magazine story, the land lease community focused team will be fully assembled during year 2024.

Anecdotally, there are at least two other historic developments related to this challenging time (i.e. years 2000 thru 2021 – when we once again surpassed the 100,000 unit mark) in manufactured housing. First, in large part due to HUD-Code manufacturers adjusting to loss of 10,000 independent (street) MHRetailers, and focusing on in-land lease community new home marketing and sales, the percentage of new homes going from factory to on-site, increased from 15 to 40+ percent. And in 2016 the first Two Days of Plant Tours & Home Sales Seminars debuted at the RV/MH Hall of Fame in Elkhart, IN. This program has continued uninterrupted – but for one year during the pandemic – to this day. Surprising, however, this concept hasn’t been imitated elsewhere in the U.S.

SOMEONE HAS TO TELL YOU…

‘The Great Green Energy Transition That Wasn’t’ rolled across my PC screen a month ago. Here I’d like to share it with you…

“One of the textbook marketing flops of all time was the Ford Edsel sedan, which was heralded as the hot new car in the late 1950s. All the automotive experts and Ford executives said it was a can’t-miss. Henry Ford (the card was named after his son) guaranteed hundreds of thousands of sales.

But one big thing went wrong: Nobody ever bothered to ask car buyers what they thought of the new car. As it turned out, they hated it. So instead of sales of 400,000, Americans bought 10,000, and the model was embarrassingly discontinued.

The obvious lesson for the industry: You can’t bribe Americans to buy cars they don’t want. Given the all-in approach to electric vehicles at Ford and General Motors, it’s clear that Detroit never got the message.

Last week (i.e. early October), Honda and GM announced an end to their two year collaboration in building a platform for lower-cost EVs. Honda execs said it was too hard.

Amazingly, less than 10% of all new car sales over the last two years were EVs. This is despite the fact the U.S> government is writing a $7,500 check to people for buying an EV, and some states are kicking in $5,000 more. The Texas Policy Foundation calculates that all-in EV subsidies can reach $40,000 per vehicle. It would practically be cheaper for the government to purchase a new gas vehicle for every American car buyer.

Energy expert Robert Bryce estimate Ford has lost $62,000 for each EV it has rolled off the assembly line. That’s hardly a road to profitability.

Meanwhile, the news is even worse for wind and solar power. The Wall Street Journal reported last week that ‘clean energy’ investment funds are tanking, with some down as much as 70% in recent months. Solar has been one of the worst-performing industry stocks this year.”

George Allen, CPM, MHM

November 21, 2023

OK, I Took A Week Off…

Filed under: Uncategorized — George Allen @ 8:23 am

Blog Posting # 768, Copyright 24 November 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance based, affordable & attainable factory-built housing! And, land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC is the online advocate, historian, trend tracker, and text resource for these two related business models! Reach EduateMHC by phoning (317) 881-3815; email: gfa7156@aol.com, or visit www.educatemhc.com; also to order Community Management in the Manufactured Housing Industry. This is the only professional property management text in print today! SWAN SONG is a history of land lease communities & official record of annual MH production totals since 1955; and, my autobiography, From SmittyAlpha6 to MHMaven – describes personal combat adventures in Vietnam, and 45 year business career in MH and community ownership/management; also author and consultant.

George Allen, CPM®Emeritus, MHM®Master, is only emeritus member of the Manufactured Housing Institute (‘MHI’), an RV/MH Hall of Fame enshrinee, retired lieutenant colonel of U.S. Marines, & author/editor of 20 books re MH, communities, business management & prayer.

OK, I Took A Week Off…

Didn’t mean to do so; but as they say ‘S___ happened.’  And now I’m back in the saddle, so to speak, sharing information, opportunities, and challenges with readers of this weekly blog posting.

This past week I got to read up on some early (U.S.) history of the manufactured housing industry. Here’re a couple of many gems I gleaned from Dr. Carlton Edwards (1911-2010) 366 pages, ‘Homes for Travel & Living’ (1977):

“The earliest records available on trailers (homes) were in 1915 when a peddler in the vicinity of New York City devised a 5th wheel hitch for attaching his wagon to his Model ‘T’ Ford Roadster.”  P.7

“As early as the 1930s, some people used trailers for living for various periods of time. While some were used strictly for vacation travel of relatively short duration, others were used for extended vacations including winter living in the warmer climates and summer living in the cooler. Their trailer functioned as a primary dwelling the year around (sic).” P.10.

(1950s). “Since the owners lived in them the year around (sic), it was natural to call them homes rather than trailers. Therefore, the term Mobile Home came into popular use by a large number of people closely associated with trailers.” P.17

(1970s). “In recent years sites have been provided where mobile home owners purchase land rather than leasing it on a monthly or periodic basis. Some parks are cooperatives where the home owner has a share of the total development. In other cases the owner may have an individual lot for his home. However, the most common sites for mobile homes are in parks owned by corporations where the home owner leases the site and service, usually by the month.” P.22

And there’s so much more I’d like to share with you. But, if you’re a subscriber to MHInsider magazine, you’ll start to see excerpts from Dr. Edwards’ tome in my Allen Legacy column.

As you may or may not know, I’m taking time to become familiar with the writings of Carl Edwards. Besides this book, he also penned a History of the RV/MH Heritage Foundation Hall of Fame, from its’ founding in 1972 through 1993. I hope and plan to research and pen Part II of this history, extending from 1993 through 2024. Taken together, Dr. Edwards work and mine (Parts I & II) will finally provide the RV/MH Heritage Foundation a comprehensive history of this valuable repository of our industry and realty asset class histories.

One of the things I’m planning to include in the aforementioned ‘history’, are lists of every RV/MH Hall of Fame induction class, from 1972 right on through year 2024. As you can imagine, these lists of more than 400 individuals read like a veritable ‘Who’s Who of the Manufactured Housing & RV Industries’. What an adventure this promises to be….

If you have ideas or resources that play to either the overall history of the MH industry, or land lease communities in particular, please share them with me via gfa7156@aol.com

And, by the way, Carl Edwards book is part of the George Allen Collection (of land lease community-related books and other writings) housed in the RV/MH Heritage Foundation’s library at the Hall of Fame in Elkhart, IN. Carl Edwards is a member of the 1982 class of RV/MH Hall of Fame enshrinees.

LOVE LOCKS

Ever heard of or seen ‘love locks’? Well frankly, I hadn’t until Carolyn and I recently spent a long weekend visiting my brother Mark and his wife Gretchen, at their home in Cape May, New Jersey. Right in front of our beachfront hotel there was a 15’ section of chain link fencing festooned with hundreds of small padlocks. Had no idea what was going on until we returned home, read a news story about ‘love locks’ and researched the subject online.

What are love locks? Well, they’re small engraved padlocks commemorating a couple’s love for one another, their upcoming marriage or anniversary. Once they obtain an engraved padlock (available online), with their preferred personal message on it, they affix it to a bridge, fence, or gate, then throw the key away – signifying the permanence of their relationship. Supposedly, the ‘love lock’ practice originated during WWI in Serbia.

Next exposure to ‘love locks’ occurred in a news story about how the Grand Canyon (AZ) park rangers recently outlawed ‘love locks’ at that location. Why? The sheer number of ‘love locks’ affixed to area fencing is daunting, even inconvenient. And worse yet, it seems condors are attracted to shiny metal objects – like ‘love lock’ keys, and these are dangerous to their health.

And just recently, while reading Ellery Adams’ mystery novel, The Secret, Book & Scone Society, I came across this paragraph describing a twist about placing ‘love locks’ in and around the fictional resort town of Miracle Springs: “…a long-standing tradition that encouraged lovers to hang a small padlock from the fence and toss its key onto the tracks. If the wheels of a passing train flattened the key, the person who hung the padlock would win the heart of the person they most desired, as long as they remembered to scratch his or her initials into the key.” P.19

Recently read how the city of Portsmouth, New Hampshire, is considering outlawing the hanging of ‘love locks’ around that town. Seems they consider them to be more of a litter or vandalism problem than a tourist attraction – or even fundraising focus.

So now you know as much about ‘love locks’ as me. Have to admit; I’ve been giving some thought to having a ‘love lock’ engraved with our initials ‘GA & CA’, along with the notation: ‘Together for 60+ years & forever’!

George Allen

November 9, 2023

MAYBE ONLY 82,000 NEW HUD-CODE HOMES SHIPPED IN 2023!

Filed under: Uncategorized — George Allen @ 9:21 am

Blog Posting # 767, Copyright 10 November 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, affordable & attainable factory-built housing! And, land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC is the online advocate, historian, trend tracker, and text resource for these two related business models! Reach EducateMHC by phoning (317) 881-3815, email: gfa7156@aol.com, or visit www.educatemhc.com; also to order Community Management in the Manufactured Housing Industry. This is the only professional property management text in print today! SWAN SONG is a history of land lease communities & official record of annual MH production totals since 1955; and, my autobiography, From SmittyAlphaSix to MHMaven– describes personal combat adventures in Vietnam, and 45 year business career in MH and community ownership/management; also author and consultant.

George Allen, CPM®Emeritus, MHM®Master, is only Emeritus member of the Manufactured Housing Institute (‘MHI’), an RV/MH Hall of Fame enshrinee, retired lieutenant colonel of U.S> Marines, & author/editor of 20 books re MH, communities, business management & prayer.

MAYBE ONLY 82,000 NEW HUD-CODE HOMES SHIPPED IN 2023!

YES, you read that right! Producing 25 percent fewer new HUD-Code homes during year to date (‘YTD’), 2023, we’ll be ‘lucky’ to hit even the 82,000 mark! How so and why? Well first off; using official Institute of Building Technology & Safety (‘IBTS’) figures, through September 2023, our industry is 25.7 percent behind where we were a year ago at this time.*1 Taking the 112,886 homes produced during year 2022, and reducing that number by 72.5 percent, calculates an 81,842 estimate for all of year 2023.

Why the 25 percent reduction in production during year 2022? Well, there’s a variety of reasons (some say ‘excuses’), to wit: continued lack of personal property financing for manufactured housing (a.k.a. chattel capital and or ‘home only’ loans) sited in land lease communities and on scattered rental building sites; also high prices charged by manufacturers, allegedly due to inventory shortages during and after the pandemic. Also local regulatory barriers to affordable housing of all types. And the list goes on….

For a list of annual manufactured housing production totals from 1955 thru 2017, read SWAN SONG, available for purchase from www.educatemhc.com

Have you noticed that no one else has warned you of this severely ‘down’ year that we are in right now? I guess ‘sticking our head in the sand and ignoring what is going on around us’ is one way to face this dire situation. A better way? Demand our two national trade advocacy entities to ‘go public’ with open discussion among all industry parties, in search of possible solutions, during year 2024, to this return to 2016 performance when only 81,136 new HUD-Code homes were produced. Oh the national advocacy entities do indeed publish YTD stats, like just stated, but do not ‘sound any alarm’ as to what they mean relative to past years’ performance.

We can only take small comfort in the fact that site-built housing sales transactions in the U.S., at present, are at a 13 year low!

End Note.

  1. Institute of Building Technology & Safety is the contractor HUD uses to ‘keep score’ of new HUD-Code manufactured homes produced in the U.S. Their monthly totals are reported in unadulterated fashion by HUD, MHARR, and EducateMHC.

HAPPY BIRTHDAY TO USMC!

It’s doubtful many blog floggers (i.e. readers of this weekly blog posting) are aware that 10 November commemorates the 248th birthday of the United States Marine Corps (‘USMC’).*1 It’s a special day for those of us who served in the Corps; my combined reserve and active duty tour stretched from 1964 through 1992. How do I celebrate? When possible, I visit the USMC Museum in Quantico, VA., with friends or family. A special, albeit emotional, highlight for me is seeing the massive 122mm Russian field gun; one of two, that I rigged for retrograde out of the Ashau Valley (i.e. Ho Chi Minh Trail) during late February 1969. Just standing there looking at that artillery piece immediately ‘takes me back’ to the firefights, casualties, emotions of those few days. To read more about that experience, read the memoir ‘PUC Beer’ in my autobiography, From SmittyAlpha6 to MHMaven. Two other good ‘reads’ about that Dewey Canyon battle, are the late Don Myers’ Your War, My War; and Karl Marlantes’ Matterhorn.

And the very next day, 11 November is VETERANS DAY. How many of you will remember to honor and thank veterans in your business and social circles for their service to our country? For starters, I’ll be flying the U.S. & USMC flags in front of our home on Friday and Saturday. Plus, though it’s not MEMORIAL DAY, I’ll take a few minutes to quietly and reverently reflect on the young Marines who served with me in Vietnam, but did not make it home to live out their lives like me. 54 years later I can recall faces and the battles we shared during our 13 months in-country. To this day I wonder how the babies and small children of some of the lieutenants we knew – who died, turned out as adults – now in their 50s. My heart aches when I think on that.

End Note.

  1. Plans are afoot for Homecoming 250, a joint US Navy & USMC commemoration of those services’ 250 birthday during year 2025. The gala event will be hosted by the city of Philadelphia, PA. Tens of thousands of veterans are expected to attend. No specific dates yet, but visit Homecoming250.org for updated information. I certainly plan to attend.

OK, I’ve Decided….

As much as I’d like to do so, I am NOT going to plan, promote, and host a Manufactured Housing Caucus during the Louisville MHShow on 18 January 2024. Yes, in my opinion, WE NEED TO COME TOGETHER SOON, to discuss and address the manufactured housing production shortfall described in the opening paragraph of this week’s blog posting. But, as I stated in last week’s blog, such convening is Best Presented when coming from one or both our industry’s national trade advocacy bodies. But will that happen? I seriously doubt it. Why? Because, IMHO, they only act when their primary $ members, HUD-Code national and regional manufacturers, tell them to do so! It’s not the ‘industry at large’ that matters here, just that sole segment. So, don’t look to me to carry this torch in behalf of manufactured housing and land lease communities. Did so, in my small ways, for 40 years.

Lest you think I exaggerate, consider this: Thanks to past national meetings, caucuses, and gatherings, we now see 40 percent of new HUD-Code homes going directly into land lease communities for marketing and sale (That’s up from 15 percent at the turn of the century); popularity of Community Series Homes (‘CSH’) now built by manufacturers and purchased by communities (i.e. featuring front load porches, durable features, and more); community owners/operators now adept at selling homes on-site (i.e. Recall the ‘Six Right Ps of Marketing’*1); and, 27 years ‘run’ of MHI’s National Communities Council division – there was no such national advocacy for communities before 1993-96. And frankly, the list could go on; we’ve come a long long way together; but again, IMHO, our whole industry and realty asset class has entered an era of malaise. The question has become: ‘Who will lead us out of it?’

End Note.

November 3, 2023

A LITTLE TITILATION ANYONE?

Filed under: Uncategorized — George Allen @ 6:54 am

Blog Posting # 766, Copyright 3 November 2023. EducateMHC

Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, affordable & attainable factory-built housing! And, land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC is the online advocate, historian, trend tracker, and text resource for these two related business models! Reach EducateMHC by phoning (317) 881-3815, email: gfa7156@aol.com, or visit www.eduatemhc.com; also to order Community Management in the Manufactured Housing Industry. This is only professional community management text in print today! SWAN SONG is a history of land lease communities & official record of annual MH production totals since 1955; and my autobiography, From SmittyAlpha6 to MHMaven – describes personal combat adventures in Vietnam, and 45 year business career in MH and community ownership/management, also author and consultant.

George Allen, CPM®Emeritus, MHM®Master, in only Emeritus member of the Manufactured Housing Institute (‘MHI’), an RV/MH Hall of Fame enshrinee, retired lieutenant colonel of U.S. Marines, & author/editor of 20 books re MH, communities, business management & prayer.

A LITTLE TITILATION ANYONE?

You into RVs big time? Well, if you are, you might just want to read the feature article I researched since January, and submitted for publication on 1 October. It’s titled ‘RVs as Affordable Housing’. To the best of my knowledge, no one has delved into the use of recreational vehicles as permanent affordable housing! I was able to document several-to-many instances where this is already occurring throughout the U.S. Even though I granted the publication First North American Rights to the article, they’ve encouraged me to share it whenever and wherever possible – wanting to get the message out and conversations started. So, if seriously interested in this subject, simply request a copy via email: gfa7156@aol.com

And now as I finish this 2023 writing project, another appears to be landing on my doorstep. Just this past week, a housing consultancy contacted me, soliciting my assistance to explore ways in which HUD-Code manufactured housing and recreational vehicles might be melded, in terms of product proper and siting – both on building sites conveyed fee simple and in land lease communities where homeowners rent sites for their homes. The aforementioned soon-to-be-published article is a step in that direction, but the matter requires continued deep thinking on my part and of others. Do you have thoughts on this timely, even critical subject? Specifically, how to increase the supply of affordable housing in the U.S., via manufactured housing, recreational vehicles, various types of ADUs (accessory dwelling units), etc…

Yet another titillating phone conversation this past week involves a well-known insurance company who used to provide semi-annual studies relative to manufactured housing marketing. Turns out they might just be considering a return to our industry, maybe even our real estate asset class, during the year ahead. I hope to be contributing to this ‘return’.

Manufactured Housing Caucus

I know, I promised. Promised to soon make a firm decision about whether to plan and host a half day Manufactured Housing Caucus on 18 January 2024 at the Louisville MHShow. And so I intended – but have yet to settle the issue once and for all. Maybe with next week’s blog posting. You see, IMHO, given the paucity of national leadership relative to the gathering ‘storm clouds’ potentially affecting our industry and property type, I’m willing once again, to step forward and host such a meeting. On the other hand, if I continue doing so – hosting such key meetings, then our national advocacy entities will likely never step forward and do this – until too little and or too late. So, which path to take? I honestly feel I’ll be ‘damned if I do & damned if I don’t’! What do you think? Send your input to gfa7156@aol.com 

George Allen

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