Housing market crisis: Deleting this phrase from 1974 law would boost affordable homes
Could 1974 Law Change Solve Housing Crisis?
Economists Lee Ohanian and James Schmitz suggest that amending the 1974 National Manufactured Housing Construction and Safety Standards Act to remove the requirement for a "permanent chassis" on manufactured homes could alleviate the U.S. housing crisis. This change would make manufactured homes more appealing, safer, and affordable, potentially reviving a popular housing option from the 1970s. They argue that this amendment could transform homeownership for millions by making these homes easier to finance and significantly cheaper.
What specific amendment to the National Manufactured Housing Construction and Safety Standards Act of 1974 do economists Lee Ohanian and James Schmitz propose?
Economists Lee Ohanian and James Schmitz propose amending the National Manufactured Housing Construction and Safety Standards Act of 1974 by removing the requirement that manufactured homes must be "built on a permanent chassis6." This change would make manufactured homes more attractive to consumers, save them money, and improve safety by allowing them to be attached to a permanent foundation. The economists argue that this amendment could revive the manufactured housing industry and significantly improve home affordability for millions of Americans.
How would removing the requirement for a permanent chassis from manufactured homes impact their safety and consumer appeal according to the economists?
According to economists Lee Ohanian and James Schmitz, removing the requirement for a permanent chassis from manufactured homes would significantly enhance both their safety and consumer appeal2. Firstly, allowing these homes to be fixed to a permanent foundation would make them safer, particularly in severe weather conditions such as tornadoes2. This modification addresses the current safety concerns associated with the inability to secure these homes adequately due to the chassis requirement.
Secondly, the removal of the chassis would increase the aesthetic appeal of manufactured homes. The presence of a permanent chassis has historically contributed to a stigma associated with living in what are perceived as "mobile homes" or "trailer parks2." By eliminating this requirement, manufactured homes could be more seamlessly integrated into various residential settings, resembling traditional site-built homes more closely. This change would likely reduce the existing prejudices and make these homes more attractive to consumers, potentially revitalizing their popularity and market demand.