New homes in the United States are produced in a variety of ways. Although the traditional method -- building a home on site from the ground up -- predominates, factory-built homes play an increasingly important role. Until recently consumers, developers, and others seeking comparative information regarding these production methods had nowhere to turn. Recently issued by HUD's Office of Policy Development and Research, Factory and Site-Built Housing: A Comparative Analysis provides the first comprehensive comparison of manufactured housing, modular housing, and conventional site-built homes. It looks at industry structure, production costs, the characteristics of occupants and purchasers, unit design and construction materials, regulatory processes, code requirements, and buyer costs. Many historical distinctions between manufactured homes and conventional homes are disappearing, according to the report. During the 1990s manufactured (HUD-code) homes have become larger. Multisection units have become more common than single-section units and placements on private land have outpaced placements on rented land. At the same time, site builders have been shifting slowly away from construction of compact, relatively inexpensive, entry-level homes in favor of larger homes aimed at move-up buyers. However, very important differences still remain. According to the report: "Basic differences in the economic structure and operation of the firms that produce manufactured, modular, and site-built single-family homes contribute to different outcomes." For example, conventional site builders continue to play a much greater role in land and site development than producers of factory-built homes, and the two groups market their homes to purchasers in entirely different ways. A cost comparison of the three types of housing finds that manufactured homes are less expensive than site-built or modular homes due to their lower square-foot production costs. The report calls for a fresh approach that combines factory production technology with conventional homebuilding activities to improve affordability and meet the needs of all homebuyers. It concludes with recommendations to help all three types of housing producers improve efficiency, reduce production costs, make better use of technology, and help deliver more affordable housing. To order Factory and Site-Built Housing: A Comparative Analysis for $5, use the order form.
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