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From the WND News Center to MHLivingNews is the following Part I item on the headline topic. The manufactured home aspect of this article is found in Part II.
Part I
Homeownership costs exploding since pandemic as inflation drags on
Soaring insurance premiums and rising utility prices also to blame
By Around the Web
Published June 12, 2024 at 10:59am
By Owen Klinsky
Daily Caller News Foundation
Homeownership costs have surged since pandemic lockdowns began four years ago due to inflation, soaring insurance premiums and rising utility costs, according to a study from personal finance website Bankrate.
The mean annual cost of owning and maintaining a typical single-family home, based on Redfin’s median sales price of $436,291, reached $18,118 in March, Bankrate reported. This represents a 26% increase from 2020 when the average annual outlay for owning and maintaining a home was $14,428.
Bankrate’s estimates come from tracking the cost of a basket of expenses that includes property taxes, homeowners insurance, home maintenance costs, energy costs and internet and cable bills.
The spike in homeownership costs is driven largely by inflation. Between March 2020 and March 2024 cumulative inflation was 21%, according to the United States Bureau of Labor Statistics. However, this does not account for the differential between the 21% cumulative inflation experienced in the broader economy and the 26% increase in homeownership costs.
This differential stems largely from insurance premiums. On top of inflation and an uptick in natural disasters, insurance companies have faced increased “litigation abuse” in which plaintiffs sue insurers for exaggerated damages, according to Bankrate.
Florida has been particular wrought with litigation; despite accounting for just 9% of insurance claims in the United States, Florida was responsible for 79% of the country’s home insurance lawsuits in 2021, according to a proclamation from Florida Republican Gov. Ron DeSantis.
This has resulted in Florida property insurers reporting underwriting losses of $1.52 billion and $1.8 billion in 2021 and 2022 respectively, according to the Insurance Information Institute.
These underwriting losses, in turn, drive insurers to limit their exposure to the Florida market. “Between home insurance companies going insolvent, limiting their risk or leaving the state altogether, Florida has lost over 30 insurance providers — or some form of coverage from these providers — in the past three years,” Bankrate reported in December 2023.
The end result of this “litigation abuse,” coupled with an uptick in natural disasters in Florida over the past few years, has caused insurance premiums to soar. Homeowners insurance increased by 102% between 2021 and 2023, according to Fox 13 News, a Florida-based outlet, reported in January.
With home prices up 40% since before the pandemic, housing affordability is the top voting issue for young people ? https://t.co/HGMg1BCcCX #GenZ pic.twitter.com/X0NovHs9yr
— Redfin (@Redfin) June 10, 2024
Inflated utility costs also played a significant part in the rising cost of homeownership. Between 2020 and 2024 utility prices rose 28.44% as utility companies spent billions in an effort to modernize grids and transition the United States from fossil fuels to renewables, News Nation reported.
Home prices continue to outpace home ownership costs with home prices growing 40% since the beginning of the pandemic, according to Bankrate. ##
Part II – Additional Information with More MHLivingNews Analysis and Commentary
1) According to data from the U.S. Census Bureau are the following facts.
| Cost & Size Comparisons: | ||||||||||
| New Manufactured Homes and New Single-Family Site-Built Homes | ||||||||||
| 2014 – 2023 | ||||||||||
| 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
| New Manufactured Homes | ||||||||||
| All1 | ||||||||||
| Avg. Sales Price | $ 124,300 | $ 127,300 | $ 108,100 | $ 87,000 | $ 81,900 | $ 78,500 | $ 71,900 | $ 70,600 | $ 68,000 | $ 65,300 |
| Avg. Square Feet | 1,435 | 1,450 | 1,497 | 1,471 | 1,448 | 1,438 | 1,426 | 1,446 | 1,430 | 1,438 |
| Avg. Cost per Sq. Ft. | $ 86.62 | $ 87.79 | $ 72.21 | $ 59.14 | $ 56.56 | $ 54.59 | $ 50.42 | $ 48.82 | $ 47.55 | $ 45.41 |
| Single | ||||||||||
| Avg. Sales Price | $ 84,800 | $ 86,400 | $ 72,600 | $ 57,300 | $ 53,200 | $ 52,400 | $ 48,300 | $ 46,700 | $ 45,600 | $ 45,000 |
| Avg. Square Feet | 1,038 | 1,064 | 1,084 | 1,085 | 1,072 | 1,072 | 1,087 | 1,075 | 1,092 | 1,115 |
| Avg. Cost per Sq. Ft. | $ 81.70 | $ 81.20 | $ 66.97 | $ 52.81 | $ 49.63 | $ 48.88 | $ 44.43 | $ 43.44 | $ 41.76 | $ 40.36 |
| Double | ||||||||||
| Avg. Sales Price | $ 154,100 | $ 158,600 | $ 132,000 | $ 108,500 | $ 104,000 | $ 99,500 | $ 92,800 | $ 89,500 | $ 86,700 | $ 82,000 |
| Avg. Square Feet | 1,748 | 1,757 | 1,794 | 1,760 | 1,747 | 1,747 | 1,733 | 1,746 | 1,713 | 1,710 |
| Avg. Cost per Sq. Ft. | $ 88.16 | $ 90.27 | $ 73.58 | $ 61.65 | $ 59.53 | $ 51.26 | $ 53.55 | $ 51.26 | $ 50.61 | $ 47.95 |
| Housing Starts vs. MH Shipments | ||||||||||
| (Thousands of Units) | ||||||||||
| New Single Family | ||||||||||
| Housing Starts | 948 | 1,005 | 1,127 | 991 | 888 | 876 | 849 | 782 | 715 | 648 |
| Percent of Total | 91% | 90% | 91% | 91% | 90% | 90% | 90% | 91% | 91% | 91% |
| Manufactured Home Shipments | ||||||||||
| Shipped | 89 | 113 | 106 | 94 | 95 | 97 | 93 | 81 | 71 | 64 |
| Percent of Total | 9% | 10% | 9% | 9% | 10% | 10% | 10% | 9% | 9% | 9% |
| Total | 1,037 | 1,118 | 1,233 | 1,085 | 983 | 973 | 942 | 863 | 786 | 712 |
| New Single-Family | ||||||||||
| Site-Built Homes Sold | ||||||||||
| (Home and Land Sold as Package) | ||||||||||
| Avg. Sales Price | $ 514,000 | $ 521,500r | $ 458,300r | $ 391,600r | $ 383,900 | $ 385,000 | $ 384,900 | $ 360,900 | $352,700 | $ 347,700 |
| Derived Average Land Price | $ 104,128 | $ 102,298r | $ 97,234r | $ 82,728r | $ 84,485 | $ 87,253 | $ 91,173 | $ 82,491 | $ 80,246 | $ 84,444 |
| Price of Structure | ||||||||||
| Avg. Square Feet | 2,470 | 2,503r | 2,492r | 2,502r | 2,518 | 2,602 | 2,645 | 2,650 | 2,724 | 2,707 |
| Avg. Price per Sq Ft. (excl. land) | $ 165.94 | $ 167.48r | $ 144.89r | $ 123.45r | $ 118.91 | $ 114.43 | $ 111.05 | $ 105.06 | $ 100.02 | $ 97.25 |
| Manufactured Home Shipments | ||||||||||
| Total | 89,169 | 112,882 | 105,772 | 94,390 | 94,615 | 96,555 | 92,902 | 81,136 | 70,544 | 64,331 |
| Single-Section | 40,525 | 51,022 | 44,755 | 42,578 | 42,930 | 44,979 | 46,305 | 38,944 | 32,210 | 30,218 |
| Multi-Section | 48,644 | 61,860 | 61,017 | 51,812 | 51,685 | 51,576 | 46,597 | 42,192 | 38,334 | 34,113 |
| New Manufactured Homes Placed | ||||||||||
| (For Residential Use) | ||||||||||
| Inside Communities (2021 – )2 | 55% | 59% | 51% | X | X | X | X | X | X | X |
| Land-leased / manufactured home community | 29% | 36% | 31% | X | X | X | X | X | X | X |
| Private property in subdivision or planned unit development | 27% | 23% | 21% | X | X | X | X | X | X | X |
| Outside Communities (2021 – )3 | 45% | 41% | 49% | X | X | X | X | X | X | X |
| Other private property | 44% | 41% | 49% | X | X | X | X | X | X | X |
| Somewhere else | 1% | 0% | 0% | X | X | X | X | X | X | X |
| Inside Communities (2014 – 2020) | X | X | X | 27% | 31% | 37% | 32% | 34% | 34% | 33% |
| In a park, court, or community | X | X | X | 23% | 26% | 34% | 29% | 31% | 32% | 30% |
| In a subdivision or planned unit development | X | X | X | 4% | 4% | 3% | 3% | 3% | 3% | 3% |
| Private Property (2014 – 2020) | X | X | X | 73% | 69% | 63% | 68% | 66% | 66% | 67% |
| Not in any of the above | X | X | X | 73% | 69% | 63% | 68% | 66% | 66% | 67% |
| Titled as Personal Property | 76% | 73% | 77% | 78% | 76% | 77% | 76% | 77% | 80% | 80% |
| Titled as Real Estate | 20% | 21% | 19% | 19% | 19% | 17% | 17% | 17% | 14% | 13% |
| r Revised – refers to seasonal index and seasonally adjusted annual rate figures | ||||||||||
| 1 Includes manufactured homes with more than two sections. | ||||||||||
| 2 Subcategories for this item were revised with the implementation of a new questionnaire in January 2021. This category now contains units located on private property within communities. Prior to 2021, all units on private property were assumed to be located outside communities. Percentages are calculated based on the estimates shown in each category in https://www2.census.gov/programs-surveys/mhs/tables/time-series/Annual_Char.xlsx | ||||||||||
| 3 Subcategories for this item were revised with the implementation of a new questionnaire in January 2021. This category now contains only units located on private property that are outside communities in addition to units outside communities not located on private property. Percentages are calculated based on the estimates shown in each category in https://www2.census.gov/programs-surveys/mhs/tables/time-series/Annual_Char.xlsx | ||||||||||
| Note: The Census Bureau has reviewed this data product for unauthorized disclosure of confidential information and has approved | ||||||||||
| the disclosure avoidance practices applied. (Approval ID: CBDRB-FY24-0318) | ||||||||||
| Source: U.S. Census Bureau and U.S. Department of Housing and Urban Development, Survey of Construction, https://www.census.gov/construction/chars/; https://www.census.gov/construction/nrc/xls/starts_cust.xls. | ||||||||||
| Source: U.S. Census Bureau and U.S. Department of Housing and Urban Development, Manufactured Housing Survey. | ||||||||||
2) According to Freddie Mac, there are some 25 plus million renters and untold thousands of potential locations that are manufactured home friendly. So, even though there are unfortunately restrictions placed by far too many local zoning boards on manufactured homes, with some research, it is often possible to find a manufactured home friendly place for someone’s new home.
3) While Freddie Mac, along with Fannie Mae, the Manufactured Housing Institute (MHI) and the Federal Housing Finance Agency (FHFA) are all arguably failing manufactured housing and millions of potential renters who could be buyers on multiple levels, at least Freddie Mac merits credit for producing some useful research that debunks many manufactured home myths. Whatever Freddie hasn’t debunked, MHLivingNews has often identified and provided other credible third-party research that makes the wisdom of the manufactured home option more apparent.
To learn more, see the linked and related reports, or surf this site and our MHProNews.com sister site. ##
We lay out the facts and insights that others can’t or won’t do. That’s what makes our sister site and this location the runaway leaders for authentic information about affordable housing in general, the politics behind the problems, and manufactured homes specifically. That’s a wrap on this installment of “News through the lens of manufactured homes and factory-built housing” © where “We Provide, You Decide.” © ## (Affordable housing, manufactured homes, reports, fact-checks, analysis, and commentary. Third-party images or content are provided under fair use guidelines for media.) (See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them.)
By L.A. “Tony” Kovach – for MHLivingNews.com.
Tony earned a journalism scholarship and earned numerous awards in history and in manufactured housing. For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com. This article reflects the LLC’s and/or the writer’s position, and may or may not reflect the views of sponsors or supporters.
Connect on LinkedIn: http://www.linkedin.com/in/latonykovach
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