Much is often written about the amazing changes that are happening in our world. This is especially true as we begin the new year. In the business world, understanding and capitalizing on changes is critical to being successful. Amongst all of this change, it is easy to underestimate the value of also examining the things that aren't undergoing change. It is important to understand the issues that are the foundation of our industry. Furthermore, if we closely examine much of the change that we see around us, then we will discover that the “change” was predictable and a direct result of some fixed points in our changing world.

There has to be certain anchors that all of us in independent housing can and should hang on to. (I prefer “Independent Housing” to “Manufactured Housing”) Modern independent homes are anchored to their lots so strongly that they can withstand hurricane force winds. Likewise there are some fixed points that anchor the independent home industry that have withstood the winds of change.

Some of these fixed points are what make investing/owning independent home communities so desirable. Other of these fixed points are what drive the demand for people to live in independent communities. Here are some of the fixed points that independent home community resident's respond to.

Affordability

America is the land of plenty. We have a long run of being one of the most prosperous nations in the world. But that hasn't changed the fact that affordable housing is still a major concern for millions of Americans. It used to be that housing costs only represented about 16% of the of the average family's income. Today it is double that. In some regions of the country it is not uncommon for over half of a family's income to go to housing. This is true for not only for low-income families but also for many middle class families.

The desire for affordable housing is one fixed point we will be count on for years to come. Independent home communities are a great source of affordable housing. Therefore, affordable independent home communities will be in demand for years to come.

Construction superiority of homes

America has many fine artisans who can lovingly put out handmade workmanship. But the industrial revolution proved that factories can output higher quality at a cheaper price. This is true for pretty much everything, including houses. Factory built independent homes will probably always surpass other homes within the same price range. Everyone now realizes the superiority of building homes in factors. Even “site-built” homes now have large portions pre-built in factories. Site-built homes can only partially take advantage of the efficiencies and quality that factories can deliver.

A fixed point for years to come is that factories will remain the best construction method for housing. Independent home communities will continue to be composed of these factory built homes. Therefore, the superior construction found in independent home communities will be in demand for years to come.

Lifestyle / Resident choices

People haven't changed. The same lifestyle choices that have caused retirement aged Americans, as-well-as families of all types, to choose independent home communities in the past will continue to influence Americans in the future. Communities offer shared resources like swimming pools and recreation halls that the residents can get full use from without having to maintain. Checking the pool's PH every day can become a chore that many can live without. These types of shared amenities are now often found in apartments, condos, and other communities. Independent home communities, however, offer even more. Independent home communities include a plot of land for a garden and the homeowner can park right next to their house. They are free-standing (no shared walls) structures that allow the owners to partake in the American dream of owning a home.

People will continue to want these values and this lifestyle. Independent homes deliver this lifestyle. Therefore the lifestyle advantage of independent homes will be in demand for years to come.

The fixed points I've listed so far all are from the resident's perspective. But high resident demand is an owner's dream come true. Here are some more fixed points that owners/investors in independent home communities can rely on:

Easy management/maintenance

Because residents own their own homes, management is only responsible maintain the common areas. This guarantees far fewer management headaches than owning apartments or commercial space. Don't get me wrong, there will still be problems. (Most of my career has been spent learning how to minimize them.) So, while owning/investing in independent home communities is not a total hand-off investment, with good management, it is low-maintenance. That's an important fixed point for potential owners to remember.

Baby boomers

Baby boomers have been a huge fixed point in American economics for a half a century now. Things that one would normally think of as changing, will bend to the baby boomers. Fashion trends, television focus, fiscal and political strategies, all are anchored in what this demographic group wants and/or dislikes. That is good news for our industry. Baby boomers are maturing to the point where they are likely to want to move into small, easier to maintain homes. But baby boomers won't want to compromise, they will want to be able to park at their own door and won't want to share a wall with a neighbor(s). That's an important fixed point for potential owners to remember.

Land values

The final fixed point I will mention is land prices. Land prices have soared in recent years, and their may be small corrections in some markets, but overall, land prices will continue to rise. Land is the ultimate fixed resource. As America grows (now over 300 million), demand for land will rise. Independent home communities generate income from it's residents. But they also increase in value as land prices increase. This makes independent home communities a near ideal investment that can both take advantage of the long term gains in property values while generating operating income from it's residents. That's an important fixed point for potential owners to remember.

All of these fixed points are things I've come to rely on in my years of experience with independent home communities. They will stay fixed points for years to come. These fixed points point to a bright future.