Is Prefab Housing Poised for a Profit?

Is Prefab Housing Poised for a Profit?

Sarah Coffey
Dec 2, 2008

We've heard a lot about the prefab housing market suffering in the (now-official) recession, but a recent article from Forbes argues that it's actually poised to make a profit whenever the housing market begins to recover. Warren Buffet is betting on prefab, and he has some good reasons...

The article doesn't discuss the modern prefabs we've seen across the pages of AT, but rather the more traditional-looking "manufactured and modular" homes of builders including Clayton Homes (owned by Buffet and responsible for about 1/3 of the manufactured housing market), Palm Harbor, Champion, and Fleetwood. In April 2009, the Federal Housing Administration will be increasing lending limits for low-end manufactured homes, causing many to believe that the prefab market is poised for growth.

To read the full article from Forbes, Mass Production vs. McMansions, click here. For a good synopsis of the difference between site-built, modular, and manufactured homes, click here.

Photo: Modular House from Palm Harbor Homes

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