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13 Basic Facts You Should Know about Modular Homes

The concept behind a tiny garden pavilion in London, UK was simplified by the following equation: shed + office = Shoffice.

Modular homes sometimes referred to as “factory-built construction“,  encompass a category of housing built in sections typically at a factory  location.   These houses must conform to local and regional building  codes for the country the buyer plans to situate the dwelling.  

Just like site-built housing, construction teams build modular homes to  last and increase in value over time.   As the factory finishes building sections of the house, each piece is transported to the homeowners build site on large truck beds.   Local building contractors then assemble the house and inspectors ensure the manufacturer has built your residence to code.   Most customers find that modular housing is less expensive than  site-built homes.

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1. Benefits of Construction

One of the benefits of  construction is that manufacturers build them indoors in an enclosed factory setting, where the materials  used to build the homes are not subject to adverse weather during construction.  

Most building contractors can finish erecting a house in as little as 1-2 weeks, though it may take up to 4 weeks or more for local  contractors to finish building the dwelling on-site once it has been  delivered.

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2. Differences Between Modular and Site Built

Modular homes are not the same as site-built homes, which contractors create 100% at the build site.   That means the
contractor must collect all the materials for a house and built it on-site.   Like a modular home, the site-built home must conform to all regional, state and local building codes.   Many refer to site-built construction as stick-built homes.   Stick built housing is also well-built and designed to last a lifetime.

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3. Difference Between Modular and Manufactured

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Manufactured housing is another form of factory construction.   Many  consumers have mistakenly referred to these homes in the past as mobile homes.   Others refer to manufactured homes as trailers.   Manufacturers do build these houses in a factory like modular homes on a steel chassis.  

The manufacturer then transports sections of the home to the building site as completed.   These dwellings are usually less expensive than both modular housing and site built housing, in part because they don’t come with a permanent foundation.   Trailers and mobile homes are more likely to depreciate than modular or site built homes.

4, Advantages of Modular Construction Over Site Built

Modular homes offer many advantages over traditional site built dwellings. Many consider modular homes a hybrid breed of housing.   Not a manufactured house and not a site built house, these homes offer consumers multiple benefits including costs savings, quality and convenience.   In many ways modular homes surpasses site built housing in quality and efficiency.  

Modulars have grown up. They are more and more becoming a mainstream  selection for first time and secondary homebuyers.   Most people now realise they don’t’ have to give up design quality or customization to buy a prefabricated house.   One of the biggest misconceptions people have of prefabricated housing is they are look alike.   “Boxy” is not a word that can begin to describe prefab dwellings. In fact, more suitable descriptions of these buidlings would include: “Elegant, durable, customised and high-class”.   Many people find they can afford to include more specialization and customization when they buy a factory built house over a traditional stick built construction.  

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5. Cutting-edge Designs

Looking for a building design with a little pizzazz?   You need to check out the latest architectural designs associated with prefabricated buildings.   Firms are now building more    elegant and unique designs to meet the increasing demands of selective customers.   People are selecting modular designs over stick built designs to build their dream homes.

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6. Customised Design and Modification

There are hundreds of companies that offer modular prefabricated construction kits and plans, and most employ various architects and specialized designers to help customize your  home.   That means you have more choices and a wider selection of designers to choose from.   If you don’t find a style you like with one designer you can often move onto another, without even switching  manufacturers.  

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7. Huge Range of Selection

Its always best to select a home that matches your lifestyle and design preferences.

8. Rapid Customisation  

These are often the ideal selection for homeowners in need of a speedily designed homes.   You simply can’t build a dwelling faster.   Site built housing can take months to design and build.   A manufacturer can design and place a prefab house in a few short weeks. You can pick from just as many different styles as you would a site built home if not more, but don’t have to wait weeks for contractors to build your custom house.

9. Precise Budgeting and Timing

Yet another benefit of these designs is the lack of guesswork involved.   You don’t have to worry about how something will look.   You know that everything will arrive to the build site complete and you will know the exact outcome. You also don’t need to worry about unexpected expenses, which is commonly the case with site built homes.   With a prefabricated house, you know exactly what your home will cost and can control that cost from the point of buying to final construction.   This isn’t the case with stick built housing. With stick built housing you also have to worry about surprises in the middle of construction.   It isn’t uncommon for example, for a contractor to quit in the middle of a project.   If this happens you have few choices.  

Your home will sit partially built until you are able to find a new construction team.   This alone may cost you valuable time and money.  

10. Improved Energy Efficiency    

Many prefab houses also come with what manufacturers call the “Energy Star” certification.   This is a national company that promotes energy efficiency.   Buildings with this label use 30-40 percent less energy yearly than traditional stick built housing.  

This saves you time and money.   Some key features of prefabricated housing that help improve energy efficiency include tight installation,  high performance and weather resistant windows, controlled air systems and duct systems, upgraded air-conditioning and heating units and use of efficient lighting and heating appliances.   As a bonus, these features not only save on annual energy costs but also improve the quality of your indoor air. Think energy efficiency isn’t significant?   Think again.   Over the lifetime of your house you could save thousands of pounds  in energy bills by buying a prefabricated dwelling.

11. Design Modification is Easier  

Most prefab homemakers now use computer aided design systems when conducting operations.   This adds to the efficiency of construction and improves the appearance and architecture  of homes.   Prefabricated construction ranges from plain vanilla styling to intricate and complex modern designs.

12. On Time and  on Budget    

Perhaps the two biggest features or benefits of prefabricated housing that manufacturers hone in on are the speed that  they can be built with and the competitive pricing they can offer on the final product.   This is one reason that modular homes are gaining popularity.  

13. Appreciate in Value

These dwellings also appreciate much like site  built housing designs.   Most homeowners are interested in building value in their house over time.   Prefab housing afford you the opportunity to do this (keep in mind however much appreciation is dependent on real estate location).   Select a good build site and your house will gain significant value over time. Other factors may also affect appreciation including landscaping and how well the house is cared for year after year.   These factors also affect site built housing.   Unlike mobile homes, which depreciate, a modular homeowner can expect to gain value from their home year after year. Study after study suggests that modular homes appreciate just as well as site built homes.   They are also just as easily insured and financed.

As far as risk goes, you are no more at risk buying prefabricated housing than site built construction.

Modular Home Facts

  • Modular homes appraise the same as their on-site built counterparts do.
  • Modular homes can be more easilly customised.
  • Most modular home companies have their own in-house engineering departments that utilize CAD (Computer Aided Design).
  • Modular home designs vary in style and size.
  • Modular homes are permanent structures – “real property.”
  • Modular homes are considered a form of “Green Building.”
  • Modular homes are faster to build than a 100% site-built home.
  • Home loans for modular are the same as if buying a 100% site-built home.
  • Insuring your modular home is the same as a 100% site-built home.
  • Modular homes can be built to withstand 175 mph winds.
  • Modular homes can be built for accessible living and designed for future conveniences.


Would you consider a modular home for yourself, or are you more of a traditionalist?

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The Hard Side of Change Management

Change management is an approach to transition individuals, teams, and organisations to a desired future state. For over three decades, academics, managers, and consultants, realising that transforming organisations is difficult, have avoided  the subject.

My Way or the Highway

Major organisational change is profoundly difficult because the structure, culture, and routines of companies  often reflect’s persistent and difficult-to-remove ways of working, which are resistant to radical change even as the environment of  organisations change.

What started out as a financial buzzword in the early nineties  has become fundamental business practice, with executives recognising the need to keep abreast  with the competition in a rapidly developing corporate new world.

Navigating  change

Globalisation and the constant innovation of technology result in a constantly evolving business environment. There is an ever-increasing need for Change Management Lead’s / Senior Managers who can help organisations successfully navigate change in today’s business environments. The focus of this movement to date has been on how to  partner with organisations to define education, training and communication platforms that help to support the change initiatives and concerns of company employees. The critical aspect is a company’s ability to win the buy-in of their organisation’s employees on the change initiative.

While a project team is important for success, a senior level advisor is invaluable and can work  with an organisations  leadership team to avoid common pitfalls that change management projects often fall into. There are four key areas where an Advisor should act as this resource as follows:

1. Defining A  Strategy  

Executives should start by asking themselves  what exactly needs  changing and why? Organisational change directly affects all departments from entry level employees to senior management and  must be aligned to a  companies  strategy. Too many programs are heavy on the jargon and light on the substance.  Executives are often sold on an idea only to realise as the change initiative begins that they need a different outcome, tool or process to be successful.

In this situation the strategy for change needs to be re-aligned with the organisation and its goals.

An outside senior advisor with a unique perspective of the organisation will  play an important role in helping an executive to explore and shape the strategy they are defining and highlight whether it will truly create the outcomes they desire. This upfront partnership can save money  on the back end of a project, by avoiding costly re-scoping of initiatives.This relationship  between senior advisor and executive should therefore begin as early as possible in the process.

2. Coalition Building

Its important to give  people multiple opportunities to share concerns, ask questions, and offer ideas  and to make following up with answers and updates a top priority.  Executives must reach out across their functional work streams to build a large cohesive team to support the project once the correct strategy has been set and the urgency for the project has been established. A good senior advisor will be able to guide an executive though these interactions.

As a senior change management professional, it is important that you help leaders of the organisation craft the correct message. While leaders often know what it is they want and see the urgency for themselves, the outside view that a coach provides can support the development of a team around the initiative and  help to navigate the strategic and political interests in linking the change to the interest of multiple team members.

The more people are involved in the process, the fewer will  be acting as internal saboteurs.

Communication Is Key to Successful Change Management

3. Communication

Don’t confuse process visioning, planning and endless powerpoint presentations with communication.  

Change is uncomfortable, and adapting to change is messy. A  Gantt chart can not capture  the  hard side of  change management. Why? Because tasks are easy to list, but behaviour and long-held habits are not easy to change. Gather outside information, solicit perspectives, and adapt the approaches for your organisation and group.

The importance of communication within an organisation around the change cannot be underestimated.     Executives often fall short on communication in two main  areas, not communicating the right message and not communicating it frequently enough across an  organisation. It is often thought that everyone else in the organisation is on board and understands the change, however, the  reality for an executive  is not the reality for another worker who may have lost a job because of a well intended change initiative.  A senior advisor can apply consistent pressure to the leader of the change around the need for communication and its messaging.

Quantity Is Fine, but Quality and Consistency Are Crucial

4. Share  Relevant  Information Quickly

Most CEOs and managers are quoted as saying, “You can’t communicate too much,” Part of the communication will be the support the urgency in messaging.     “My way or the highway”  is often used, but is not an effective communication strategy.     Senior Advisors can work with executives to tailor their message to each area of the organisation in order to define content that is important to them.

A study by  Towers Watson  shows that “only two-thirds (68%) of senior managers say they are getting the message about the reasons behind major organisational decisions. Below the senior management level, the message dwindles further  to  (53%) of middle managers and 40% of first-line supervisors understanding  reasons behind major organisational  change.

The forwarding and cascading of information does not work as  consistent communication around the change will be necessary at all levels of the organisation using a variety of communication pathways and vehicles.  As a trusted advisor it is important to encourage executives to lead by example in both their messaging and communication of the change  agenda.

Only 25% of Change Management Initiatives Are Successful over the Long Term

Maintaining The Change

Many leaders and managers underestimate the length of time required by a change cycle. It is paramount  that as the  change effort reaches its completion that  leaders of the change recognise that the process does not end there.   The role of a Senior Advisor will be to guide them to the idea that work must be undertaken  to maintain the change over time. Maintaining change does not mean that an executive must own the initiative  forever, just that they take the necessary steps to ensure that change has a lasting impact by integrating the change into the corporate culture and measuring the benefits  and highlighting areas for future improvements.

The outside unbiased view is  that a Change Management Lead is crucial to the success of a change management program.

This article  provides food for thought rather than counsel specifically designed to meet the needs of your organisation or situation.  Please use it mindfully.

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The Golden Gate City’s out-of-control Housing Market: San Francisco Shack Just Sold for $1.2 million

The listed property at 16 De Long Street in San Francisco that sold for $1.2 million. Courtesy of Vanguard Properties

Long Way from Home: The Housing Crisis Lingers On “Distinguished home in need of work” as  listed with Vanguard Properties “Housing Special.” However, is this property a rich man’s dream or worst nightmare?

With rotting wooden shingles, peeling paint and boarded-up windows, this 1906 single-story home need’s a lot of work. But the price is what had people talking. The asking price was  $350,000, for 2 bedrooms, one bath, and a mere 765 square feet, about the size of a hotel suite.

The Golden Gate City’s out-of-control Housing Market

Located at 16 De Long Street in the more affordable Outer Mission district, the house price reflects  the out-of-control  real estate market in San Francisco. Since 2012, the city has seen a 103% increase in housing prices.  The average apartment in the city rents for $3,500 a month, and the median housing price reached an all-time high of $1.2 million and it’s expected to climb another 5.2% in the year ahead, according to Zillow. Manhattan rents in August, by comparison, topped $3,460, according to StreetEasy, a New York real-estate research firm that’s part of the Zillow Group Z, -2.95% .

The San Francisco Real-estate Market Is Probably the Hottest Market in the U.S Right Now

Not surprisingly, given the state of the actual building, the home’s value isn’t in the structure but in the land that it sits on.

Thinking of Moving to San Francisco to Make It Big in the Tech Industry

With the influx of tech workers driving up the housing market, along with a strain on the supply of houses to meet demand, it is understandable to brokers in San Francisco  why prices seem so unrealistic.

$1.2 Million Is What It Costs to Buy a Shack in San Francisco, Literally

The home is an earthquake shack. These tiny homes were built after the 1906 earthquake to house people who lost their residences. Many still remain around the city and have been restored, updated and refurbished.

According to a report from  Curbed San Francisco, the house had rats, black widows, mold, and hundreds of bottles of urine  inside it when it went up for sale and was subsequently  sold for $1.52  million.

The tiny home backs on to the eight-lane 280 freeway and a Bay Area Rapid Transit, or rail line that begins running at 5 a.m. and doesn’t stop until nearly 2.a.m.

On the flip side biking it to the local  station only takes eight minutes and getting on to the freeway isn’t difficult either, if you want to get out of town or into the city by car. Three golf clubs are also nearby.  And, for those late-night snacks, a convenience store stands just a few steps away at the corner of De Long and San Jose Avenue.

So maybe it wasn’t  such a bad deal, after all? or is it a sign  of how crazy the San Francisco real estate market has become?

Michael Lewis, writing for The New Republic, describes the negative effect of wealth on the moral behavior of wealthy people. He cites studies in which wealthy people, again and again, demonstrate a sense of entitlement and disregard for justice.

“As the recession lifted, poor and middle class Americans dug deeper into their wallets to give to charity, even though they were earning less. At the same time, according to a newChronicle analysis of tax data, wealthy Americans earned more, but the portion of the income they gave to charity declined.”

So rich people, statistically speaking, demonstrate disregard for their fellow citizens and the laws of the land. None of this should come as a surprise for Christians. Jesus warned of the dangers of wealth (Matthew 13:22) and of course Paul warns in 1Timothy, “the love of money is the root of all evil.” And yet solving the problem of extreme wealth in America is not so easy as spouting Bible verses. And for wealthy Christians, the solution to the problems of extreme wealth comes from entrusting that wealth to the Lord to the benefit of all.

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Professional Consultancy Responds to Health and Social Care Challenges

As people in the UK live longer, demand for residential care and nursing homes is growing, as are our expectations of the standard of living they will provide.  Dean Jones  offers insights about the value a professional consultancy has for overcoming the challenge and driving value for patients.

The current state of affairs

As a result of some well-broadcasted care scandals that attracted extensive, and in some cases, damaging media attention, the government has responded with cuts that are impacting local authority (LA) fees and resulting in far tougher  Care Quality Commission (CQC)  policies.

Office for National Statistics (ONS)  Projects That by 2035 There Will Be 3.5 Million Uk Residents Aged 85 and Older, Compared to Only 1.4 Million Currently

In spite of this, the “extra-care” – or Residential Elderly Care (REC) sector – continues to overcome these challenges, attracting new investments, particularly into new-build care homes. These are specially designed, owner-occupied, self-contained housing, often with round-the-clock support and meals and sometimes with nursing assistance.

A typical pattern is for owner-founded care home operators to reach a growth limit, based on the founder’s management capacity, access to capital and appetite for risk. They cease to invest in new capacity and don’t benefit from economies of scale which can be passed on to commissioners. Public markets typically do not fulfil their function as a supplier of capital in the case of healthcare services, because they generally demand relatively modest gearing.

There’s a widely recognised need across all health and social care market segments for innovation and system change, as well as capital investment in new services. A private equity investor is well placed to leverage technical services to strategically programme and project-manage Residential Elderly Care (REC)  public real estate schemes across their entire lifecycle.

Supply and demand challenges

Today, professional healthcare businesses and registered social landlords (RSLs) are the main providers of new capacity, period. Since 2008, private and voluntary status providers, who service 92 percent of all Residential Elderly Care, have reported an upswing in demand and occupancy. Paradoxically, as adult social care budgets are decreasing and the provision of residential care by the  NHS  and local authorities has shrunk, the number of UK people who require help and support is rapidly increasing.

The Increasingly Ageing Population of the Uk Appears to Be Underpinning the Overall Rise in Rec Capacity and Occupancy

While Local Authorities (Las) are seeking to divert placements to inexpensive non-residential/domiciliary-based alternatives, the increasingly ageing population of the UK appears to be underpinning the overall rise in REC capacity and occupancy. Britons are living longer than ever. The  Office for National Statistics (ONS)  projects that by 2035 there will be 3.5 million UK residents aged 85 and older, compared to only 1.4 million currently. The cost of caring for these residents is also forecasted to increase. For example, caring for a person with dementia will increase to $1,142,677 by 2025 and $2,092,945 by 2051. In total the government estimates that 1.7 million more adults will require some type of care and support over the coming decades.

As a result, the current number of nursing and residential care homes in the UK (over 381,000) will need to almost double over the next 20 years to cope with rising numbers of people aged 85 or more.

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A bright future?

The demand for care will continue to rise as a result of life expectancy increasing and ageing. A robust REC independent sector arises primarily from the net increase in residential demand, and more recently, improved occupancy. These are the result of a number of competing forces:

  • Demographics, with the ageing population expected to drive the demand for health and social care.
  • Outsourcing, the long-term transfer of residents from LA homes to independent care homes.
  • Severe financial constraints, at least over the next five years, as the government – which pays for the bulk of health, social care and special education – seeks to eradicate the public expenditure deficit and restrict new builds.
  • Outdated assets, or older care homes that no longer meet needs.
  • Consolidation, a trend within segments of the independent sector.
  • Maturity, against a currently immature healthcare market.
  • Efficiency, highlighted by the “Nicholson challenge” for the NHS to make £15 to £20 billion in efficiency savings between 2011 and 2014. (It costs the NHS approximately £3,000 a week to care for elderly patients with no clinical need to be in a hospital ward. By contrast, it comes to about £1,000 per week for a residential care home provider.)
  • Demand and Occupancy. Unless the supply of new builds increases (currently by approx. 7,500 beds p.a.), it’s possible that some regions may see bed shortages, driving up LA fees.
  • New Technology. Progressive management capabilities in leveraging technology and strategic collaboration will constitute the formula for success and sustainability in the new healthcare business environment.

While a longer life is welcome news for millions of Britons, it could ironically trigger a public service meltdown as our national health system is stretched to its breaking point. Local authorities and NHS trusts retain a significant role in delivering services, with 75 percent of nursing home places funded by the public sector. There exist ever-increasing opportunities for private care providers to take some of the strain from NHS and ease bed-blocking by caring for patients, mostly elderly, in a residential setting when there is no clinical need to be in a hospital ward.

The REC Sector Could Potentially save the Nhs Billions of Pounds.

A combined approach to health and social care and some innovation is required for this savings to become a reality. In addition, Care Home Operators have a unique opportunity to grow their businesses and benefit from economies of scale, leveraging the expertise and resources of a professional consultancy. In doing so, they’ll have necessary resources and systems to bid for significant re-provision of services tendered by local authorities.

About Dean Jones

Dean is an Associate in AECOM’s Programme Leadership Practice. Dean joined AECOM from Care UK, the UK’s largest independent provider of health and social care, where he was a Programme Manager and delivered a £250m investment growth programme over 2012/15 which increased Care Uk’s number of homes circa 33%. Dean was also Programme Manager for a £60m Suffolk programme to build ten new care homes and ten day clubs, bringing much needed additional nursing and specialist dementia care to the Suffolk community.

 

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