New Manufactured House Option Could Spur Propane Market Revival

from August 2021 Texas Propane magazine

2021 Crossroads TPGA Propane Expo+Conference

Thousands of entry-level home buyers priced out of today’s red-hot market are finding their dream house in a new class of structure long dominated by propane.

Nationwide, historically low mortgage rates are feeding housing demand beyond available supply. Fallout from the pandemic also is shifting location demand for new construction, and manufactured housing has been responding faster than site builders.

Not the Trailer Parks of Old

Once stigmatized as cheap and poorly constructed, manufactured housing has undergone a swift reputation boost in recent years. Today, manufacturers are using the latest factory construction techniques to create high-efficiency yet low-cost dwellings with all the infrastructure, finishes and aesthetics of a site-built subdivision.

Labeled as CrossMod homes, they blend features of traditional site-built houses – such as pitched roofs and garages – with the innovative construction techniques used in off-site construction. Importantly, CrossMod homes are eligible for more affordable mortgage financing previously restricted to site-built homes.

“Propane and the manufactured housing industry go back to day one,” says Propane Education & Research Council (PERC) Director of Residential and Commercial Business Development Bryan Cordill. “The first manufactured housing units produced were RV’s, and propane was on board. Next, we moved to parked model housing and propane served as the primary source

Helping Business Owners Retire

Legacy Energy Consulting was started in 2020 by 30-plus-year propane industry veteran Chad Pendill. Call: 763-772-2834 info@legacyenergyconsulting.com www.legacyenergyconsulting.com

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• Initial consultation to learn about your business and discuss the process • Prepare a detailed offering package to present to buyers • Use our un-matched industry relationships to present your business to upward of 20 buyers in most markets • Manage the entire process • Set a detailed timeline for buyers • Receive and review offers and leverage our knowledge of both sides of the process to negotiate the best overall deal for you, your employees and your customers • On-site support during due diligence • On-site support during closing

of energy for cooking, water heating, and home heating.”

He says CrossMod homes offer a point of entry for home buyers who would not have previously considered purchasing a manufactured home. They have the potential to bring manufactured housing to areas around the country that have little or no exposure to off-site built homes other than prevailing misconceptions.

Trending Up

The Manufactured Housing Institute reports that new manufactured home production in March this year was up 20 percent compared to 2020. Compared with the same month last year, March 2021 shipment gains were posted in all nine regions, including increases for 37 states. The recent investment by Berkshire Hathaway, parent of the nation’s largest home builder Clayton Homes, into a modular construction company further fuels the segment for continued growth.

The evolution from mobile homes to manufactured houses to HUD-code homes caused propane to fall by the wayside for over half of the country. Today, propane retains a strong market share, nearing 90 percent in northern states where the cost to heat a home with electricity is prohibitive.

But propane’s flexibility and energy efficiency make it the ideal fit for CrossMod homes, according to Cordill. For everything from water heating, cooking appliances, clothes dryers, fireplaces, standby power, and even outdoor amenities like flame lighting, propane performance fits into any budget.

“It’s the best of all worlds,” Cordill notes. “As housing affordability challenges continue to grow, families of all economic backgrounds are searching for these highquality homes that don’t create an unrealistic financial burden. And when they enhance it with propane appliances they lower their energy bills, reduce their carbon footprint, and add benefits that last well into the future.”

Learn how propane’s flexibility and energy efficiency make it the ideal choice for CrossMod homes at propane.com/crossmod. Download and share a brochure that showcases propane as the energy solution for all types of manufactured and modular homes from the PERC Resource Catalog at https://propane.com/ resource-catalog/.

Appliance Rebates for Manufactured Homes

Did you know new propane water heaters & furnaces manufactured homes may qualify for rebate through the Propane Council of Texas?

It includes new manufactured homes sold to Texas customers as well as replacements. Learn more at www.txsaveswithpropane.com.

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