Market Trends of Latin America Manufactured Homes Industry
This section covers the major market trends shaping the Latin America Manufactured Homes Market according to our research experts:
Low Construction Cost Propels the Demand for Manufactured Homes
The average building construction cost per square meter in Brazil surpassed 20,000 Brazilian reals (USD 3851.49) in 2021, which is twice as high as in 2010. Modern manufactured homes are up to 50% less expensive per square foot than traditional site-built homes while yet providing exceptional quality and performance. These savings allow more and more Latin Americans to own their own home, even in the face of an ever-widening housing affordability gap. Hence, the growing preference for manufactured homes as compared to traditional homes owing to their low construction cost per square foot and the increase in the need for affordable housing has boosted the demand for the manufactured housing market during the forecast period.
Moreover, enhanced energy efficiency in manufactured homes, achieved with upgraded levels of insulation and more efficient heating and cooling systems, provides another source of savings for homeowners, especially in this era of rising energy costs. Smart buyers also are turning to Energy Star-labelled manufactured homes for substantial savings in many aspects of owning and operating a home.
Moreover, loan options are available for purchasing manufactured homes. For instance, Rocket Mortgage, the nation's largest mortgage lender and a part of Rocket Companies, in November 2022 introduced a conventional loan option for Americans who are interested in purchasing or refinancing a manufactured home.
Moreover, manufactured homes can be financed as personal property. Even when the home and land are financed together, the home can be secured as personal property and the land as real property. Owing to the above factors, the demand for manufactured homes is expected to grow significantly during the forecast period.
Rapid Urbanization Boosts the Demand for Manufactured Homes
Manufactured homes are already a major part of the solution to the nation's lack of affordable housing. In many parts of Latin America, these homes are the least expensive kind of housing available without a government subsidy. In 2021, 81.37 percent of the total population of Latin America and the Caribbean lived in urban areas and cities.
Urbanization attracts people to cities and towns, leading to a high population increase. With the increase in the number of people living in urban centers, there is a continued scarcity of homes. As a part of the Great Housing Mission (GMVV) program, Venezuela President Nicolas Maduro supplied 4 million social houses in April 2022.
Like many other countries, Colombia is also experiencing a massive housing shortage right now. Currently, 1.2 million families have no place to call home. And with only 240,000 new housing units available each year, the housing shortage will be an ongoing issue in Colombia for years to come.
So, Bolivar Construction company intends to introduce modular construction to multi-family building developers and property owners in Colombia. It is anticipated that modular building would gain traction as people learn about its lower construction and maintenance costs and higher return on investment.
