Answering the call for affordable single family rental housing
ERC Single Family Manufactured
“Even before the COVID-19 pandemic, renters in the United States were facing a housing affordability crisis. Nearly a quarter of renter households were spending more than half of their incomes on rent each month, leaving little income to cover other expenses.”
In a January 2021 report called The Rent Eats First: Rental Housing Unaffordability in the US, the Harvard Joint Center for Housing Studies wrote:
Further to this point, Central Florida (the first region for ERC’s rollout) has one of the highest rates of cost-burdened renters in the country, according to recent data collected by the National Low Income Housing Coalition. Middle-income people in this region need affordable alternatives that are conducive to the needs of families with children as well as retired households.
These factors are driving more households to choose a rental single-family home. Home prices have been rising at a pace that completely outstrips income growth. This is on top of an already challenging gap between incomes and home prices.
Average cost per home estimated at~$65,000 all-in development cost of ~$160,000 providing solid basis for profitable rentals and scaling.
Prioritizations on structural integrity over optional amenities:
Standard Features include hard-surfaced floors (no carpets), wider exterior walls (2” X 6” vs 2” X 4”), senior grade insulation, full FEMA-code storm protection
Demand driving up the cost of manufactured homes resulting in increased market value of rentals
Every $5,000 of increased home cost = only ~$31 of required rent to maintain yield based on current rent comparables
Tax Advantage: Shorter depreciation life of manufactured homes
QUALITY & MAINTENANCE
Structural strength of manufactured homes on par with conventionally built homes:
Monthly internal inspections ensure rigorous ERC maintenance standards
Leveraging technology and personnel to closely monitor communities
Some manufactured homes are 30 and 40+ years old, proving their sustainability.
All ERC MHR homes will be brand new, with an advantageous combination of allowable depreciable life and practical longevity
ERC selects markets based on in-depth, research- driven analysis around targeted metro areas and the surrounding sub-markets
ERC has engaged housing research specialist firm, Hunter Housing Economics, to provide detailed analyses around optimal land locations, rental levels and demand drivers
ERC’s initial development strategy focuses on several key Florida markets:
Tampa, Brandon, Riverview, Seffner, Plant City, Zephyrhills, Wesley Chapel, Pasco County, Ellenton and Bradenton
Broke ground in Q4 2022 in Zephyrhills, FL