Tuesday, September 1, 2020

Opportunities Abound for Modular Housing Post COVID-19

The ‘new norm’ of COVID-19 will see people wearing masks more often, maintain social distancing and almost all of us will be more aware of social and medical situations in our housing choices.

There will be winners and losers in post COVID-19. The biggest losers could be restaurants that have relied on dining in, entertainment venues like bowling alleys, sports events, movie theatres and stage shows. 

One of the biggest winners will be modular housing. Yes, MODULAR HOUSING!

With the skilled labor shortage at on-site construction projects and increased leadtimes, many project developers and new home buyers will begin looking for new ways to build their homes and developments and there is no better way than going modular.

Here are a few reasons why modular can be the best alternative to site-built housing.

New Home Buyers Moving into the “burbs”

The pandemic showed both employers and employees that working from home was not a detriment to productivity. As an added bonus many employees found living away from the city was actually relaxing.

They began buying used homes further from their workplace which usually were usually located in inner city locations making the commute both time consuming and expensive.

Many decided a new home was in their future with most of the ‘work from home’ crowd either choosing to buy in a tract community or build in the country. With fewer site builders available and incredibly long lead times, many looked to modular construction for their new home.

Modular factories and builders are seeing huge increases in quotes and contracts since June. 

The Need for More Room

Since the coronavirus, the ‘work from home’ employee is spending most of their time in their home or apartment instead of going to the gym, out to the movies and eating and drinking in restaurants and pubs.

Guess what! They are suddenly finding their home very cramped and many feel trapped with no place to go and they have decided an office and even a gym area in their home would be a great idea.

Modular housing is already designing homes with both offices and gyms included and many of the new floor plans feature expanded kitchens and social gathering areas. 

If you are a modular home builder, there may never be a better time to find a nice infill or country lot and put up a spec home. There is financing out there to help you do just that. 

Many Homeowners Also Looking at ADUs

Some distance employees already own a home but need an office separated from the rest of the family and are finding modular Auxiliary Dwelling Units a smart choice. Many cities and towns are rewriting zoning restrictions to allow them onto the owner’s property.

There is no quicker or more efficient way to have an ADU than going modular. If you are a modular builder and haven’t begun researching where they are allowed in your sales territory, you are missing a great opportunity.

A Second Home Could be in Their Future

For those with financial means, owning a second home near the water or in the mountains may afford them the escape they need from city life.

Ownership of a second home isn’t cheap but many employees and business owners may find the second home worth every penny if they have to live in areas that are losing businesses due to the pandemic.

Modular home builders need to become proactive in finding Realtors that specialize in second home lots and begin building second homes on spec.

With record low interest rates, the market at all time highs and city home owners feeling trapped, looking into the second home market could be a good investment of the modular home builders time.

Gary Fleisher is a housing veteran, editor/writer of the www.ModcoachNews.com, www.Modular-homecoach.com blogs and the ‘coming soon’ www.ModcoachConnects.com, Construction Consultant’s Directory. 

Contact modcoach@gmail.com

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