Initially sales of modular housing had started surging ahead when interest rates began falling. It turned out that at that time housing contractors in the northeast region of the U.S. promptly discovered that most tradesman had gravitated towards higher wages elsewhere in Houston and that there was a major shortfall in labor for housing market construction. With little skilled home construction trade workers to be found, developers turned to factory work.
Modular housing appeals to both the building community and consumers. Contractors did not have to outlay $ 25,000 in lumber costs, on spec; you can wait until you have a buyer - a home customer. Factories that construct modulars in the quality controlled atmosphere of a manufacturing plant can also eliminate traditional building trade problems like onsite vandalism as well as weather delays. For the most factory labor is less expensive than construction crews, so employer costs are lower.
The manufacturer - the home builder or the contractor can speculate and build product and volume if they choose, or can operate as a dealer. Speculating means higher initial capital investment since you must purchase the land and modules and subcontract site work. Dealers invest less in order to purchase one or several model or model display homes to exhibit, demonstrate and show customers what they are buying. Some potential customers, in these days of the internet as well as substantial taxation prefer or even insist to physically touch what they are buying. If luck has it that the buyer will lay out a cash deposit early in the process, the dealer can lay out enough cash to start his business and hire a crane crew to put the module in place and a finishing crew to join the modules together.
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