The subprime mortgage crisis has affected just about every form of housing within the country. Lending is more restrictive, current home inventories are still tremendous, and a large percentage is unable to make their current mortgage payments. And while the modular home industry has felt the effects, the impact has been much less than on the site-built housing industry.
Recent trends at the end of 2008 and thus far in 2009 has seen new customers considering modular homes in greater numbers. The largest group is those that normally spend $200,000 for a home but are looking to maximize their value while keeping the price within their budget. Modular homes boast greater value through better durability, larger square footage and more amenities compared to most equally-priced site-built homes. Given the continued pricing instability of new and existing homes, modular homes give a more stable value.
Fortunately, lending practices for many banks have now loosened enabling easier financing for modular homes that had met resistances previously. This will likely continue for both new and existing modular homes as incentives to banks to make these loans become more accessible to the homebuyer. Because some people are selling their existing homes out of necessity, getting into a new home at a lower price is their eventual goal. For the same amount of money, modular homes offer more than traditional site-built structures.
In addition to modular homes offering a better value solution, modular home manufacturers and retailers are expanding their markets. By being more creative, those in the modular home industry have found new customers who benefit from this technology. For example, some retailers have been supplying individual units to ski resorts for condo-type additions as the ski resorts see a need. This makes it simple for the ski lodge to increase their capacity without taking on a huge expense.
Commercial uses of modular homes for schools and government buildings has been present for decades, but other areas in commercial construction are just now beginning to explore modular construction for its use. Compared to residential housing, the commercial market has been less affected in the current housing crisis. This is an ideal area for the modular industry to explore in greater numbers.
While global economic effects are present, some international markets have not been hit as hard as the U.S. Canada represents one such market. Many modular retailers and manufacturers, especially in the northeast, have expanded their territories to include locations across the U.S. border. Despite the currency exchange difference, this has been a profitable endeavor for several.
While modular homes offer better technologies and greener living compared to site-built homes, their greater value and their flexibility in use is what is proving to allow a strong competitive edge. While 2009 is certain to be a less than banner year for most businesses, the modular home industry features a good foundation to weather the storm. When the dust settles, modular homes have the best value and opportunity to gain momentum moving into the future.
The Modular Industry Adapts
Modular Dealers, Modular Plans
Where can I find modular dealers? What can a modular dealer do for me? Is it expensive to build a home from modular plans? Are modular plans better than stick built homes? Do modular dealers provide a warranty?
Where can I find modular dealers?
You can find modular dealers by asking existing homeowners and real estate agents for recommendations. You can also contact your state manufactured housing association for names and addresses of modular dealers and manufacturers. You can do a search online for "modular dealers" or search the Yellow Pages as well.
What can a modular dealer do for me?
Modular dealers are usually responsible for providing modular plans to the homeowner. They can help the homeowner choose which features they want and don't want and help them customize the modular plans to their taste and satisfaction. The modular may also assist the home buyer in obtain financing and insurance.
Once the modular dealer has helped the home buyer select and customize their modular plans, the modular dealer will coordinate the delivery and installation of the home. Your modular dealer is usually the person to contact if you have warranty issues after you move into the home.
Is it expensive to build a home from modular plans?
Modular homes typically cost less to build than homes built on site. Modular home manufacturers can get greater volume discounts on building supplies because of the large number of houses they build each year. Modular homes are built in a controlled environment. There is less waste because building materials are not exposed to the outside elements.
Are modular plans better than on-site built homes?
Modular homes are built with 15% more nails, screws, lumber, and adhesives than on-site built homes. They are built to withstand the wind and vibration of traveling along roads and being lifted piece-by-piece by crane.
Do modular dealers provide a warranty?
Most modular home manufacturers provide a warranty that covers the structure itself. The modular dealer typically has a warranty that is more comprehensive. The modular dealer's warranty may also cover issues related to the installation and/or delivery of the home. Many states require that your modular dealer have a building license and provide a warranty that covers the electrical, plumbing, and mechanical systems also.
Potential home buyers, looking for new construction should consider a modular home as one of their options. Building homes in a factory has many advantages over building one on-site. Modular homes are built faster and sturdier than on-site homes. You can take a tour of modular home factories to see how it's done.
Modular Homes the Wave of the Future
Maybe you have seen a portion of a pre-built house moving — hopefully slowly — along a highway to a site that a family will one day call home. It likely was part of a modular home, which offers builders and home buyers advantages about which you should know.
For years, modular homes have been confused with U.S. Department of Housing and Urban Development code homes, also known as "manufactured housing." Unlike HUD code homes, which have a permanent chassis to allow towing to the home site, modular homes usually comprise several sections assembled on the home site. And like a site-built home, modular homes must meet local code requirements.
A product of systems building, modular homes are constructed on an assembly line in a climate-controlled factory setting. Despite a lingering misperception of factory-built housing as inferior, these homes account for a growing percentage of new construction.
According to a recent study by The Freedonia Group, a Cleveland-based industrial market research firm, the amount of factory- or systems-built housing will grow 1.2% annually through 2005.
Modular homes account for one of every 10 homes built in the Northeast, according to the NAHB's Building Systems Council. That region ac-counted for 29% of the nation's modular activity in 2001. The South Atlantic region was a close second with 26%, and the Great Lakes region ranked third at 24%.
The most popular states for modular construction in 2001 were North Carolina, Michigan and New York.
A good many of the homes you see today — perhaps some of your competitors' — are modular homes. In 2001, modular homes accounted for 3% of all single-family homes constructed, the BSC says. Outside of metropolitan areas, that figure jumped to 11%.
How They're Made
In a highly engineered manufacturing process, modular homes are built in sections called modules. Once built, the modules undergo a series of quality-control checks in the factory.After the manufacturing process is complete — typically with interior finish on the floors, walls and ceilings — trucks transport the home to its site, place the modules on a prepared foundation with a crane and join them to the foundation and each other.While critics have charged that modular homes are too boxy, that refrain is beginning to fade with growing flexibility in design and customization options. Also, the emerging trend of hybrid modular panelized construction — adding site-built garages, porches and other custom add-ons — gives modular housing a fresh face.
Fast Construction
Some factories can build modular homes in as little as one to two weeks. The home's arrival at its site and placement on its permanent foundation can be even more astonishing. In another two to four weeks, a local builder or contractor can connect the utilities and complete the home. "It takes approximately 90 to 120 days for the entire process, from the time the customer places an order until it's ready for the family to move in," McLendon says.
Saving Time and Money
Modular homes usually cost less per square foot — 5% to 25% less, one manufacturer estimates — than site-built homes, thanks to shorter, more organized and more predictable construction schedules. Aside from cost savings, buyers of modular homes also benefit from the accelerated on-site assembly time. The associated advantages — reduced chance of weather damage or home-site vandalism — make modular construction a smart choice for infill development.
The Comfort Factor
Modular homes are "overbuilt" to withstand travel from the factory to the home site, so they often are sturdier and tighter than conventional homes. They also make it easier to insulate areas hard to access in a home constructed with conventional building techniques. Reduced air infiltration and more complete insulation often make modular homes more comfortable than site-built homes while lowering heating and cooling costs.Increasingly, modular construction offers builders a competitive alternative that might be worth a departure from traditional construction methods.
Contact Building Systems Network for more detailed information at www.buildingsystemsnetwork.com or call them at 770-888-2761
Why Build Modular?
It seems like a question that is becoming more popular as more people hear success stories from choosing this form of new home construction. There are several reasons why modular homes are becoming more popular and increasingly taking over a larger segment of the new housing market. Here are the key reasons.
Higher quality - Modular homes are not manufactured homes or mobile homes. Modular homes are constructed with the exact same materials as site-built homes and by the same building code standards. However, because these homes are transported from the factory to your building site, extra measures to improve durability and strength are added. As a result, this makes modular homes actually superior to site-built homes in quality.
Less expensive - Modular homes are built in a factory setting away from the weather and in a setting where construction efficiently moves forward at a rapid pace. As a result, the time to build a modular home is less than half the time required to build a site-built home. This save tremendous time in construction costs for both the manufacturer and consumer. In addition, there is less waste and better use of materials. In the end, modular homes cost about 20 percent less than site-built.
Design savvy - You may think design options are limited for modular homes, but any design you want can be made by modular home building techniques. Any architectural plan can be accommodated by most manufacturers. Consumers expect a degree of design options and styles, and this has been the focus of the modular industry. Even home designers and architects alike have embraced modular technology.
Better investment - Combining high quality with less expensive costs clearly makes for a better home investment. In today's climate of rising foreclosures and looming recession, modular homes are making more sense than ever before.
Time efficient - In a rush for that new home? Want to cut your construction loan time in half and get out of the temporary rental? Then modular is the way to go. In one study, identically designed homes were built on site and in the modular factory. The end result demonstrated that it took 10 months from start to finish for a modular home (including design, financing and construction) to be completed, but 21 months for a site-built home. Time is of the essence!
"Greener" - With less waste and an ability to attend to greater recycling efforts from the factory setting, the modular home industry focuses on the environment to a much greater extent than site-built homes. In addition, architectural designs are continually creating better modular features to augment energy efficiency. Solar panels, reduced "non-livable' space, and better airflow patterns are just some recent features added that show this industry's attention to being "green".
There are several other reasons as well, but the above highlight the major aspects of how modular homes are rising above other options for new homes. The best part is that unless you see a modular home assembled, you would never be able to tell the difference from a site-built home. The fact is many of your neighbor's homes are likely modular, and you never even knew it.
The Meaning Behind Modular Office Furniture
Recently I purchased some modular office furniture when I was moving my home office. I wanted a work environment that was more conducive to work, so that meant getting out of the family room. I decided to use an upstairs room that was not being used wisely, and with the help of my husband (who actually did all of the work) we painted the walls and installed new trim (out of the 70's and into modern times!). The room looks really nice, and all for under $100. Now it was time for new furnishings, because my 1950's gray laminate table was staying downstairs.
I went to an office supply store to see what they had, and pretty much everything was modular. Modular office furniture has really changed in the last 20 years. You can buy inexpensive, cubicle type modular furniture all the way up to high quality, executive type modular office furniture.
This got me thinking, exactly what is modular furniture, and how did it get its name? I hear the term modular thrown around a lot and applied in various ways. It is easy to accept a term without giving much thought to its real meaning, how it developed that meaning, and its etymology.
So I did a little research. The term modular originated from the Latin term (yes, most everything goes back to the Latin!) modulus which literally means to measure.
In the American Oxford Dictionary, the term modulus is basically a math term, and though applicable in some way, was beyond what I wanted to delve into. So without getting into more complex definitions that involve logarithms, modulus is the absolute value of a complex number. Which make me ask, did modular office furniture originated form math?
From this meaning, not only did the word modular develop, but before that, the term module. Since the definition of modular includes the word module, lets take a look at module first.
According to Merriam-Webster online, module is a noun that has been around since about 1628. A module is:
- a standard or unit of measurement (math again!)
- any in a series of standardized units for use together: as (1): a unit of furniture or architecture
The term modular was coined about 170 years later in 1798. It is an adjective and defined as follows:
- of, relating to, or based on a module or a modulus
- constructed with standardized units or dimensions for flexibility and variety in use
One other piece of useful information I found about modular office furniture was at Britannica Encyclopedia online, and is specifically about modular building construction. Modular construction is a system in which buildings are so designed that their dimensions are multiples of a given figure. Modular construction simplifies the problem of producing standard building components and materials that will fit together in a wide variety of applications.
This application of buildings can also be applied, along with the other definitions, to modular furniture. Modular office furniture is composed of various modules (you pick what you need to fit your work style and environment). The modules have standard dimensions (modular construction) that are designed to easily fit together.
For example, you may start with a basic desk. From this you can customize your work area by adding a credenza alone or credenza hutch, or perhaps you would like a lateral file or a pedestal return that fits on the left side of your desk. These or other options would all fit with your basic beginning desk, as long as you stay with the same brand and model, the heights of all units will be standard, and very important, the connectors will all line up correctly!
Understanding modular helps us to appreciate this modern innovation, the ability to take independent units to construct a more complex unit that fits together perfectly to build modular office furniture designed for independent needs. Now I just have to decide what I need in my new office space!