Exploring location and accessibility relationships between manufactured housing and banking facilities in Tuscaloosa County, Alabama

Abstract

This study has explored location and accessibility relationships between manufactured housing (also referred to as mobile homes, manufactured homes, or trailers) and banking facilities in Tuscaloosa County, Alabama. The main research objective was to examine the relative location of manufactured housing and banking facilities. Additional research objectives included determining the demographic characteristics of mobile home residents and finding out whether or not these residents have access to banking facilities. The study showed that whereas manufactured homes tend to be located in outlying census tracts or in the central part of the county outside city limits, banking facilities are located in the central part of the county within city limits. A Geographical Information System (GIS) suitability analysis showed that overall, less urbanized areas are suitable for the location of manufactured housing units in Tuscaloosa County. These trailers have kept out of the more urbanized locations by zoning restrictions. Statistical analyses showed that the number of industrial establishments and population density are strongly correlated with the number of branches of identified banking facilities, with the number of industrial establishments having the strongest correlation. A spatial mismatch was found between the locations of manufactured housing and banking facilities. Less urbanized areas where mobile homes are located were found to have low population densities, low per capita incomes, and low levels of competitiveness, while more urbanized areas where banking facilities are located were found to have high population densities, high per capita incomes, and high levels of competitiveness. From the survey of mobile home residents carried out as part of this research, it was evident that a majority of household heads (approximately 57%) are between the ages of 46 and 65 years, while 14% are 65+ years old. It was also found that approximately 58% of household heads are working, while 42% are not working. All the respondents in the survey use banking services, with a majority using credit unions. An overwhelming 91% of respondents use loans, while 60% of those who use loans have gone in for a home or home improvement loan (either alone or together with other loans). Based on the results of the survey, it was fair to conclude that notwithstanding the spatial mismatch between the locations of manufactured housing and banking facilities, residents of manufactured housing have access to banking facilities in accordance with the Community Reinvestment Act (CRA) of 1977. This implies that one does not necessarily have to be located in close proximity to a banking facility in order to access banking services, as most banks have adopted more technologically advanced ways of dealing with their customers. Also, with space-time accessibility measures, where people work or shop could be a much more useful way of assessing whether or not they have access to banking facilities. However, in terms of aggregate accessibility which is based on points such as homes or zones, or topological accessibility which is based on travel distance or time, manufactured housing residents are placed at a disadvantage relative to residents of site-built homes when it comes to accessing banking facilities.