New rules for manufactured homes
For months we’ve been chronicling the record high home real estate sales and record high median sales prices in Florida, but now it appears the tide is starting to turn according to recent reports. Meanwhile the record high rents continue, making it hard for some businesses to pay on time. Plus, HUD is out with the biggest changes in its manufactured home standards in decades. It’s all in this week’s look at real estate news across the Sunshine State.
Housing Sales Drop: Home sales in South Florida dropped in June by more than 30% in Palm Beach County, 26% in Miami-Dade County, and 20% in Broward County, according to Realtors data. Inventory is up as a result, rising 50% in Palm Beach County, 22% in Broward County, and 19% in Miami-Dade. The record home prices in South Florida earlier this year are now coming down. Redfin reports 20% of homes in West Palm Beach had a price reduction, along with 15% of homes in Fort Lauderdale, and almost 14% of homes in Miami. Yet overall, median sales prices in Tri-County are still rising, up 15% to 24% from a year ago. There are similar reports in the greater Orlando area, where demand has dropped off. A doubling of mortgage interest rates (from 2.73% a year ago to 5.52% today) and high inflation in consumer goods are cited as reasons for the decline.
Small Business Hit: Florida was among the top five states with the highest rent delinquency rates for small businesses in the second quarter of this year, according to Alignable, an online network of small business owners across North America. Its survey shows 33% of Florida’s small businesses were delinquent on their rents in May, up from 24% in April. Rent prices are up, too, with 71% of Florida small businesses reporting higher rents in May than six months ago, up from 61% in April.
Manufactured Housing Rules: The US Department of Housing and Urban Development (HUD) is out with proposed changes in construction rules for manufactured housing that are viewed as the biggest change in 20 years. The proposed new rules and rule updates to its Manufactured Home Construction and Safety Standards, commonly referred to as the “HUD Code,” align with changing industry standards. They address a variety of components including multi-unit dwellings, ridge-roof designs, open floor plans, truss designs, specifications for attics, and accessibility improvements. The agency is in a 60-day public comment period.
“Manufactured homes are an important element of the nation’s affordable housing supply,” said HUD Assistant Secretary for Housing Julia Gordon, in a release. “These proposed updates, when final, will help to expand the availability of safe and affordable homes that align with current design trends and construction methods.”
LMA Newsletter of 7-25-22
