Downsizing the American Dream: Successful NY Mod Builder Expects 50% of His Business to Be HUD-Code

John Makovic, a successful modular builder in Monticello, NY and one of the 2008 winners of the 30 Under 40 Awards recognizing talented individuals in the Building Systems industry, has seen the changes in the home building industry first-hand.

"I have contracts for well over 100 units this year that got put on hold," John Makovic, owner of Makovic Homes, told the local newspaper, the Times Herald-Record. "The Hasidic projects are the only ones going forward. They have some of their own funding sources, the private funding."

Makovic is still selling homes, but the sales come in one at a time, instead of by the subdivision. Like so many American workers, the American Dream itself is getting downsized. Buyers are looking for smaller homes, Makovic said, and many are opting for less-pricey manufactured homes.

"This year, I expect manufactured homes to be 50 percent of my business," Makovic told the Times Herald-Record. (For that story click here.)

Before funding dried up and the home building industry cratered, Makovic was a shining example of how to prosper in the home building industry using a building system. Using Ritz-Craft as his main producer, Makovic saw explosive growth. He did three homes his first year of business in 2001. By 2007, he was turnkeying well over 300 homes annually.

Makovic launched his business in a a 900 sq.ft. office space and in the intervening years he expanded to a six-home model center. All models are fully merchandised and landscaped. He has sold more than 500 modular homes since launching the business in 2001. Moreover, he has persuaded local developers of 1,000 homes to switch to modular in 2008.

Despite the downturn, Makovic oversees daily operations, attends every set, inspects every home upon delivery and upon completion.