manufactured housing metropolitan opportunity …...manufactured housing metropolitan opportunity...
TRANSCRIPT
Minneapolis-St. Paul is a place where manufactured housing plays a small but important role in the affordable housing market and where existing mainstream affordable housing systems are robust. As the region plans for nearly 400,000 new households by 2040, of which 40% will earn less than 80% of area median income1, we can estimate that both the preservation and construction of affordable housing units will be critical to meeting the housing needs of its lower income residents.
The Metropolitan Council is the Twin Cities’ regional planning agency, created by the Minnesota legislature in 1967 to plan for growth, address issues that could not be sufficiently addressed within existing governmental arrangements and coordinate the delivery of regional systems including affordable housing, regional parks, transportation, water treatment and environmental services.
The Metropolitan Council’s 2040 Housing Policy Plan estimates that the region will need more than 13,000 new housing units per year to address expected new household growth2. Manufactured housing’s quick construction, low cost, high density and energy efficiency makes it worth adding to the toolkit of local affordable housing developers. At the same time, the preservation of existing affordable housing will be key to the strategy of meeting the Twin Cities’ affordable housing needs. The region’s 85 manufactured home communities—where more than 90% of manufactured homes in the Twin Cities metro are located—presents an opportunity to preserve affordable housing through resident ownership, nonprofit ownership and community land trusts. The Metropolitan Council’s estimates of affordable housing need do not account for the need to replace substandard homes or homes lost to gentrification or demolition. However, given that more than one-third of the manufactured homes in the region were built before 1980, a substantial portion of those homes may require either major repairs or replacement within the next decade. While working with manufactured housing requires some nuanced understandings of policy, housing development and community issues, it also already plays a critical role in serving the affordable housing needs of low- and moderate-income families in the Twin Cities. Leveraging the value of manufactured housing going forward could play a major role in increasing low-income families’ access to affordable housing and opportunity.
AFFORDABLE HOUSING NEED & THE ROLE OF MANUFACTURED HOUSING
TWIN CITIES
38,003residents or roughly
1% live in
14,740 manufactured homes in
the Twin Cities metro area
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For many low- and moderate-income households, manufactured housing is more affordable than other types of housing.
A manufactured home is a type of prefabricated
housing that is constructed in a factory and then
transported to a site for installation. These homes
are built to a federal code administered by HUD that went into effect in
1976. Factory-built homes constructed before 1976 are called mobile homes. Modular homes are also prefabricated in a factory, but differ from manufac-
tured homes because they are built to a local building
code.
75% of manufactured
housing is affordable, compared to only 28% of all other housing types
Housing is “affordable” if total housing costs account for 30% or less of household income for households earning incomes be-low 50% of area median income.
Note: This Data Snapshot is designed to assess the role of manufactured housing in local markets and the extent to which manufactured housing contributes to a set of solutionsfor affordable housing needs in the Twin Cities metropolitan area. The geographic area referred to within the Twin Cities metro area includes 186 cities and townships across the
following seven counties in Minnesota that make up the Metropolitan Council’s Planning Area: Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington.
Monthly Housing Cost Comparison
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$250
$500
$750
$1,000
$1,250
$1,500
Manufactured Homeowners
All Homeowners
All Renters
Manufactured Housing Metropolitan Opportunity Profile: Data Snapshot OCTOBER 2015
$0
1 Metropolitan Council, 2040 Housing Policy Plan (Minneapolis: Metropolitan Council, 2014), 2. 2 Metropolitan Council, 2040 Housing Policy Plan, 6.
0
20
40
60
80
100
120
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120
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40
60
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100
120
WHO LIVES IN MANUFACTURED HOMES? Residents of manufactured homes differ in some key ways from their neighbors in other types of housing. Owners of manufactured homes are less likely to have access to mortgage financing and typically finance their homes with higher-interest personal property loans instead. This means that, even though owners of manufactured homes tend to have a lower housing cost burden than other low- and moderate-income homeowners, they are forced to use financial products with higher fees and fewer protections. Owners of manufactured homes in the Twin Cities metropolitan area are also more likely to be Hispanic, speak Spanish at home, work in low-wage jobs and be single-parents than other homeowners. The educational attainment of owners of manufactured homes falls significantly behind renters and other homeowners: 12% of manufactured homeowners have an Associate’s degree or higher, compared to 52% of other homeowners and 35% of renters. Overall, these data show that owners of manufactured homes are vulnerable to the perils of unaffordable housing and highlight the need to expand access to opportunity in the communities where these homes are located.
JOBS Owners of manufactured homes often work in industries that typically feature lower-wage jobs.
EDUCATIONBy 2019, an estimated one in three jobs in the Twin Cities will require a post-secondary education. Today, owners of manufactured homes are much less likely to have completedhigh school or post-secondary education compared to other homeowners and renters.
MEDIAN HOUSEHOLDINCOME
HOMEOWNERSHIP Manufactured home residents are more likely to own their homes than residents of other types of housing.
88%of manufactured home
residents own their homes
69%of residents in other types of housing own their homes
HOME FINANCINGOwners of manufactured homes are less likely to have a mortgage and, presumably, more likely to have a personal property loan. Why does this matter? Personal property loans tend to have higher interest rates, shorter prepayment periods and fewer protections for owners. Plus, homes financed with personal property loans tend to be titled as personal property, like cars, which depreciate. This makes it much harder for homeowners to build wealth through homeownership.
Note: We expect that the American Community Survey (ACS) data at our disposal most likely misrepresents the share of manufactured homes with mortgages. Because the ACS defines mortgages as “all forms of debt where the property is pledged as security for repayment of the debt,” owners of manufactured homes who are asked whether they have a mortgage may respond affirmatively knowing that they are repaying a loan of some sort, even if that may be a personal property loan. As a result we expect that the ACS estimate for the share of manufactured home owners with a mortgage is inaccurate, so it has been omitted here.
76%
All Other Homeowners with a Mortgage
Some School, No HS Diploma
HS Diploma or Equivalent
Some College
Associate’s or Bachelor’s Degree
Graduate Degree
Manufactured Homeowners All Homeowners All Renters
Manufactured Homeowners
All Homeowners
All Renters
$37,794$83,454$32,581
22%
44%
22%
11%2%
5%22%
21%
38%
14%
16%
25%
23%
27%
8%
9% 8% 3% 2%
Restaurant &Food Services
ConstructionLaborers
Retail Hospital WorkersElementary & Secondary Schools
3% 2%
Nursing Care Facilities
OWNERS OF MANUFACTURED HOMES ALL HOMEOWNERS
12%Speak Spanish
at Home
4%Speak Spanish
at Home
SNAP BENEFITSOwners of manufactured homes are seven times
more likely to receive SNAP benefits compared to other
homeowners.
LANGUAGEResidents of manufactured
homes are more likely to speak Spanish
compared to all other types of housing.
CITIZENSHIPCompared to other
homeowners, a larger share of those who live in
manufactured homes immigrated to the
United States.
HOUSEHOLD COMPOSITION Families in manufactured homes are more likely to be headed by
single parents compared to other homeowners and
renters.
ETHNICITYOwners of manufactured
homes are more likely to be Hispanic or Latino and less likely to be Black or African
American than residents of any other housing type.
Note: The income and demographic data presented on pages 2 and 3 come from the 2013 American Community Survey 5-Year Estimates.
ALL RENTERS
14% 2% 19%
HispanicBlack
2% 3%
Black Black
18%
7%Speak Spanish
at Home
Hispanic Hispanic
13%
2%7%
39%
26%
36%
0
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40
60
80
100
120
Married Couple
Single ParentHead
Non-Family
0
20
40
60
80
100
Married Couple
Single Parent Head
Non-Family 27%
11%
62%
0
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40
60
80
100
Married Couple
Single Parent Head
Non-Family 56%
23%
21%
17% Immigrants 7% Immigrants 19% Immigrants
WHERE ARE MOST MANUFACTURED HOMES LOCATED?
Innovations in Manufactured Homes (I’M HOME) is a national initiative managed by CFED which seeks to ensure that owners of manufactured homes have the opportunity to build wealth through homeownership by improving the quality of new and replacement development, enhancing homeowners’ ability to enjoy long-term land security, expanding access to safe home financing and encouraging a supportive policy environment.
Manufactured Housing Communities and Proximity to Public Transit
IN WHAT CONDITION ARE MOST MANUFACTURED HOMES?More than one-third of manufactured homes in the Twin Cities were built before 1980. Why does this matters? Before HUD began regulating the construction of these homes in 1976, there were no consistent building standards for manufactured homes, so older units are more likely to be in need of repair or replacement.
Built 2000 or
LaterBuilt 1980 to 1999Built 1960 to 1979
Built
Bef
ore
1959
2% 35% 48% 17%
13,660of the manufactured homes in
the Twin Cities metro area
or
93%are located in
85 manufactured home
communities
LEGEND
Existing Rail Routes w/in .25 Miles of MHCs
Planned Rail Routes
High Frequency Service Network Bus Routes w/in .25 Miles of MHCs (10,18,19,64)
Manufactured Housing Community (MHC) Populations
Metropolitan Council. Additional alternative estimates calculated by CFED. (2010)
1-134135-314
315-549
550-814
815-2000
North Star Commuter Rail Stations
Planned Bus Rapid Transit Routes w/in .25 Miles of MHCs
Standard Bus Routes w/in .25 Miles of MHCs
07 14 21 283.5Miles
ANOKA
WASHINGTON
RAMSEY
HENNEPINWASHINGTON
CARVER
SCOTTDAKOTA