MHI Conference & Expo Insights: Navigating the Manufactured Housing Landscape
Returning from the latest Manufactured Housing Institute (MHI) Conference & Expo in Orlando, our team shares key takeaways and industry insights from this gathering of manufactured housing professionals.
The Evolving Manufactured Housing Industry
The Housing Challenge
America faces a significant affordable housing shortage of over 7 million units nationwide, according to the National Low Income Housing Coalition. Manufactured housing represents a salient and practical part of the solution to this growing crisis. Industry professionals, government representatives (including the new HUD Secretary), and investors alike recognize the potential of factory-built housing to help bridge this gap.
Perception Challenges
Despite significant advances in quality and design, the industry continues to battle “NIMBYism” – neighborhood resistance to new developments (“not in my backyard”). Outdated stereotypes about “trailer parks” persist even as today’s manufactured homes are built to federal standards and feature amenities comparable to site-built homes. Many modern units include energy-efficient equipment, crown molding, kitchen islands with solid surface counters, and other high-end finishes that rival conventional construction.
Regulatory Developments to Watch
The Chassis Challenge
A critical regulatory issue discussed at the MHI conference involves potential changes to the HUD definition of manufactured housing. Currently, the chassis (the steel frame used to transport the units) must continue to be attached even when the home is mounted on site in order to comply with HUD regulations and maintain the important federal certification. This requirement fundamentally affects how these homes are perceived, classified, and valued in the market.
Potential Game-Changer
Industry advocates are lobbying for changes that would allow the removal of the chassis after installation on site. That regulatory shift would represent a significant evolution for the sector, as the homes would not have to be set up as high above the ground – a telltale sign of a manufactured home and one that makes people think lower quality for the home and community. Such a change would allow manufactured homes to be more on par with modular and site construction to significantly reduce stigma and create new possibilities for mixed community development. Based on discussions at the conference, this change requires Congressional action to modify the definition of manufactured housing.
A Method of Construction
We believe that one important way to shift perception of manufactured housing is to view it not as a distinct “product” category but instead as a method of construction. Along with panelized, modular, additive manufacturing, site-built, and other innovative construction approaches, manufactured housing represents one of many viable paths to creating quality, affordable living spaces.
Having a broader perspective on methodology helps transcend outdated stigmas and focuses the conversation on the real benefits: speed of delivery, quality control advantages of factory building, and potential cost efficiencies without sacrificing quality. Today’s manufactured homes range from affordable starter homes to luxury residences with high-end finishes – clearly a far cry from the “trailer parks” of decades past.
Infrastructure: The Critical Pain Point
Based on many conversations at the MHI conference, it’s clear that aging community infrastructure represents a common and significant challenge for property owners and financiers. Aging private and public septic systems, sewer pipes, stormwater facilities, electrical feeders and equipment, site lighting, asphalt pavement, mail and package facilities, and other infrastructure elements present complex technical, regulatory and financial hurdles that many owners struggle to navigate effectively.
Many community owners find these infrastructure challenges overwhelming. They often turn to civil engineers who may over-design solutions based on municipal public standards rather than practical and more cost-effective approaches for private communities. This disconnect can lead to projects that are designed to be overly complex or specified at a premium grade causing capital projects with longer timelines and unnecessary expenses\.
The impact of deferred maintenance and obsolete infrastructure extends beyond compliance issues – it directly affects resident satisfaction, lot rent potential, and ultimately property value. Communities with reliable, well-designed and operating infrastructure systems can support more homes and provide better service to residents, creating the foundation for long-term value.
Real Projectives: Your Partner for MH Infrastructure Improvements & Site Expansion
Our Infrastructure Expertise
At Real Projectives, we specialize in diagnosing and managing improvements to community infrastructure and common amenities. Our experience with complex capital projects allows manufactured housing community owners and financiers to address these critical pain points effectively and efficiently.
We excel at navigating regulatory requirements while implementing cost-effective solutions tailored to each private community. Our professional approach balances necessary capital expenditures with long-term value creation, ensuring investments generate appropriate returns.
Strategic Development Support
Beyond infrastructure improvements, we assist with land development and adding home sites to existing communities – another area where specialized expertise is crucial for success. Our site planning capabilities help balance density with quality of life, creating communities that appeal to today’s residents.
Value-Focused Approach
Unlike renovating individual manufactured homes (which many conference attendees noted can be financially challenging), focusing on enhancing community infrastructure and amenities delivers lasting value. Inherently, our expert and dedicated project management team minimizes disruption to residents while maximizing the impact of improvement investments.
Looking Forward
As the manufactured housing industry continues to evolve, Real Projectives remains committed to supporting community owners and investors with our specialized expertise in capital improvement planning and management. Whether you’re a nationwide REIT looking for supplemental support on complex projects or a family investor seeking guidance on upgrading aging infrastructure, our team understands the unique challenges of manufactured housing communities so that you gain confidence with achieving investment goals.
Contact Real Projectives to discuss how we can support your manufactured housing community investments.
