A Staple of Manufactured Housing: Champion Homes

September 22, 2024



Champion Homes

In the evolving landscape of prefabricated housing, many new companies are making waves. Yet, one name has remained a cornerstone of the industry for decades: Champion Homes. With nearly 70 years of experience, Champion Homes has established itself as a dominant force in the market. We had the opportunity to speak with Doug Tollin, the Director of Customer Experience. We delved into Champion Homes’ approach to prefab housing and what sets them apart.

About Champion Homes

Champion Homes is a nationwide leader in prefab housing, operating 48 factories across the United States. Each factory operates with a degree of independence. It tailors its offerings to meet the specific needs and conditions of its local market. As Tollin points out, “A Southeast California design will naturally differ from a Northwest Cape Cod design.” Despite this regional diversity, most of Champion Homes’ offerings fall within the mid-price range, catering to a broad spectrum of homebuyers.

While residential housing remains the core of Champion Homes’ business, they also offer manufactured housing communities, including park models and tiny homes. Last year alone, Champion Homes built 25,000 houses, bringing their total to an impressive 3 million homes to date. This equates to about 500 homes produced daily across their network of factories.

Ordering a Home

Champion Homes offers an extensive catalog of home designs, each with unique exterior and interior options. Customization is a key feature, allowing buyers to tailor their homes to specific locations and preferences.

Once a home is ordered, it enters the production line within three days and is completed in just seven days. After approximately 1.5 months of on-site construction, the home is ready for occupancy. In total, the build process takes about 55 days from start to finish, though external factors such as factory backlog and land development can affect the timeline.

The cost of a Champion Home typically averages $125 per square foot for a 1,500 square foot house. Prices vary significantly by location. In comparison, traditional builds average $144 per square foot. While this difference may seem modest, the savings add up as square footage increases. For a 1,500 square foot house, this could mean paying $187,000 instead of $216,000. Champion Homes’ nationwide presence and centralized production process enable them to offer lower costs that newer market entrants often struggle to match.

Sustainable Development at Champion Homes

Champion Homes is committed to energy efficiency as a core component of their mission. All 48 of their factories are certified ENERGY STAR facilities, reflecting their dedication to sustainable practices.

Energy efficiency is also a top consideration in the homes they build. Champion Homes aims to reduce energy bills by maximizing efficiency, with Tollin emphasizing that the true cost of a home isn’t just the upfront price—it’s also “what it costs after you own it.”

Moreover, all Champion Homes can be made net-zero ready. This feature is increasingly in demand among both residential buyers and city governments.

Modular Housing: A Growing Trend

Tollin sums up the benefits of Champion Homes’ offsite construction model in three words: “fast, affordable, and attractive.” Their efficient production process not only simplifies the homebuying experience but also reduces costs by an estimated 13% compared to traditional builds.

Champion Homes, like many other modular housing companies, has seen a steady increase in the number of homes they build each year. In today’s environment of high interest rates, homeowners with low-interest mortgages are staying put longer. This increases the demand for new housing and drives growth for manufacturers like Champion Homes.

Tollin also observes a generational shift towards prefab housing. While older generations may associate manufactured homes with lower-quality construction—think “mobile homes with tires on them”—younger generations are less likely to hold these preconceptions. As more young homeowners enter the market, Tollin predicts that the popularity of modular housing will continue to rise: “Modular is a new, cool, hip way to build.”

Conclusion

Champion Homes has long been a leader in the manufactured housing industry, offering affordable, customizable, and energy-efficient homes across the United States. As the market continues to evolve, the company remains committed to innovation, sustainability, and meeting the needs of a new generation of homeowners.

Disclaimer

The information provided on this blog is for general informational purposes only. It is not intended to be a comprehensive analysis of the securities, markets, or developments referred to. While we strive to ensure the accuracy and reliability of the information, the content of this blog does not constitute financial advice, investment advice, trading advice, or any other advice. You should not treat any of the blog’s content as such. 

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Forward-looking statements made in this blog are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual results may differ materially from those expressed in forward-looking statements. We expressly disclaim any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

Featured image is courtesy of Champion Homes


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