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Thursday, March 28, 2024

Interest rates and inflation have crushed the housing market - Next Modular is providing solutions

Last updated Thursday, March 23, 2023 12:29 ET

Next Modular is offering affordable homes that are designed by home buyers and built in a factory, which saves the buyer time and money.

Goshen, Indiana, 03/23/2023 / SubmitMyPR /

Next Modular is offering new ways to purchase affordable homes that can be customized to a home buyer's specific ideas in mind for what they want their home to be.

They offer affordable and customizable homes to buyers. The cost to build a modular home is much less than building a home on site and is much more time efficient. Once a customer works with Next Modular to customize the home they want built the designs are sent to a factory to be constructed.

The United States is currently facing a severe housing unit shortage with estimates varying between one million and six million units. This shortage largely stems from the 2008 financial crisis. During that time the housing market crashed and many working within the industry left and have never come back. This includes realtors, contractors, and developers. As the housing market began to recover the demand for housing increased, but with the absence of labor to fill that need the demands have gone unmet, which has led to housing shortage.

With inflation rates at 6% as of February 2023, which is above the Federal Reserve’s target rate of 2% to 2.5%. In 2020 inflation rates were at 2.49% and rose to 7.48% by 2022. Interest rates are also hampering the United States economy with current 30 year mortgage rates averaging 7% nationwide. This has led to cost increases for home builders and contractors as well as supply chain issues. Combined, these two issues have made it difficult to purchase building supplies at an affordable price. Prices for building materials and supplies are currently up 20% from 2021. It’s not just building supplies that have increased in price, but most goods have seen a significant price increase from food, retail, automotive and many more sectors.

According to the National Association of Realtors the average cost to buy a home is currently at $446,000, which is a 20% hike from the previous year. For new home buyers only 10% of available home inventory is priced less than $300,000, whereas 25% of homes were under this amount the prior year. This price increase is caused by rising inflation and interest rates. As this trend continues, homes are becoming less and less affordable.

Next Modular is solving the problem of shortages in affordable homes through their low cost modular homes. Their modular homes are 20% cheaper on average to build than on site homes, which means lower monthly payments for the home buyer. They also work with lenders that have flexible credit and down payment requirements. Sometimes they can go down to a zero dollar down payment.

This saves home buyers the time and money of looking for different subcontractors to work on different sections of a home that’s built on site.The modular homes being built in a factory takes out factors such as weather, which can hamper the on site building of a home. When going through Next Modular, home buyers don’t have to worry about building materials being damaged by weather while the home is being built.

If someone wants to purchase a modular home they will meet with Next Modular to work through home designs they want to pursue. Buyers will be able to pick out everything from the exterior and interior design as well as the layout of the home. Next Modular then takes bids for the house from home manufacturers. Once a contract is secured the home buyer signs with Next Modular and construction of the home begins in a factory.

Joel Comino, CEO and Founder of Next Modular, said the market for affordable housing and time efficiently built homes were not being taken care of.

“We have a pretty big housing problem in the United States, and we just don't have enough housing units for the population,” said Comino. “Our goal is to offer quality homes at an affordable price point, with a faster build time.“

Media Contact:

Name: Joel Comino

Address: [email protected]



Original Source of the original story >> Interest rates and inflation have crushed the housing market - Next Modular is providing solutions