Friday, July 20, 2018

Forbes Article Looks to Modular Housing for Millennials

Just a couple of years ago, homeownership rates were low, and many analysts were blaming millennials. Burdened by more student debt than previous generations and typically inclined to marry and start a family later in life, millennials were a factor in 2016 homeownership rates falling to the lowest levels recorded by the U.S.Census Bureau going back to 1965.

What a difference a couple of years makes! Homeownership is rising, and millennials are leading the way. But will the new tax law shake things up?
But innovations in homebuilding are delivering more affordable, sustainable housing, and that could relieve some of the pressure in areas where homes are hard to find. Modular homes, which are built offsite and then assembled on the lot, are a more attractive option today, with stylish, tech-forward designs now available in many areas. Prefab houses featuring design principles that save energy and reduce the homeowner’s carbon footprint can be a great alternative to traditional housing.

The new tax law won’t immediately affect federal tax credits that were already in place to encourage the use of solar electric or solar water-heating systems in qualified residences or new homes.

If this is what is on the horizon for modular home construction, both single family and multifamily, our industry could be on the verge of a breakout decade. No longer should custom modular home factories have to rely on commercial projects to sustain production levels and in fact, those modular factories may start opening separate commercial production lines to meet the demand for hotels, dorms, condos and assisted living facilities.

There has never been a better time to support the two associations, the MHBA and the NAHB's Building Systems Council. that will continue to make modular and offsite production the best way to build new homes and commercial projects.

No comments: