Maine Modular & Custom Home News

For a good source of general modular housing news visit the National Modular Housing News site.  Click here.

Canada has a booming economy, a low inflation rate and a hot oil industry.  The United States is at war and continues to cut interest rates to ease the mortgage industry.  The result: for the first time in 30 years the US dollar and the Canadian dollar are par.  What does this mean for the modular housing industry?

For years modular housing retail centers in the Northeast have been importing Canadian built homes.  Canadian built modular homes have a great reputation for good construction at a good price.  Or at least they did.  They still have good construction, but the price is not as competitive as it was.  Just four years ago the Canadian dollar was worth $.62 for each American $1.00.  That means that a home you could buy for $100,000 in the United States could be purchased for $62,000 in Canada.  Even adding freight and import costs, that was a great buy - just four years ago.  Today, with the $1 to $1 exchange rate, the Canadian home is more expensive to purchase than the US made home.

The consumer will have less dollar incentive to buy a Canadian manufatured home, but they will also have more homework to do.  While the exchange rate has lowered the pricing incentive to buy a Canadian manufactured home, there will be a greater need to comparison shop based on quality and building standards.  For some tips on what to compare see my previous entry titled “They’re All Alike.”