While mainstream conventional housing is recovering, as is the big-ticket RV industry, HUD Code manufactured housing is reportedly trailing its year-over-year performance and is recovering slowly from the pandemic-sparked shutdowns.
Using the official data compiled on behalf of the U.S Department of Housing and Urban Affairs (HUD), the year-to-date data provided by the Washington, D.C. based Manufactured Housing Association for Regulatory Reform (MHARR)through June 2020 vs. the same cumulative results for the first 6 months in June 2019 is down.
The specifics are in their report to MHProNews shown below. It will be followed by a additional information with MHProNews Analysis and Commentary in brief.
Manufactured Housing Industry Production Declines Slightly in June 2020
FOR IMMEDIATE RELEASE Contact: MHARR
INDUSTRY PRODUCTION DECLINES SLIGHTLY IN JUNE 2020
Washington, D.C., August 10, 2020 – The Manufactured Housing Association for Regulatory Reform (MHARR) reports that according to official statistics compiled on behalf of the U.S. Department of Housing and Urban Development (HUD), HUD Code manufactured housing industry year-over-year production fell slightly in June 2020. Just-released statistics indicate that HUD Code manufacturers produced 7,568 homes in June 2020, a 2.5% decrease from the 7,761 new HUD Code homes produced during June 2019. Cumulative 2020 production at the end of June 2020 stands at 46,165 homes, as compared with 46,682 homes produced over the same period in 2019, a decrease of 1.1%.
A further analysis of the official industry statistics shows that the top ten shipment states from the beginning of the industry production rebound in August 2011 through June 2020 — with cumulative, monthly, current year (2020) and prior year (2019) shipments per category as indicated — are:
The June 2020 production data does not result in any changes to the cumulative top-ten list.
The Manufactured Housing Association for Regulatory Reform is a Washington, D.C.-based national trade association representing the views and interests of independent producers of federally regulated manufactured housing.
— 30 –
Additional Information plus MHProNews Analysis and Commentary
Forbes recently made a useful mention of manufactured housing as an option for the reportedly growing trend of people leaving major cities for more rural or ex-urban markets. To learn more about that topic, click on the report linked image and headline below.
MHI can’t have it both ways. They can’t claim to be the leader and then not be responsible for the outcomes. They can’t claim to have influence or ‘clout,’ with their access demonstrated by photo opportunities, while not being willing to admit that those photo ops fail to get the implementation of laws favorable to manufactured housing.
Posturing is not the same as doing. For example.
Despite the Manufactured Housing Institute’s (MHI) recent pitch to the White House and the U.S. Senate to do differently, President Donald J. Trump took a pass on MHI’s and their ‘housing coalition’ lobbying effort, as can be learned from the report linked below.
There are numerous reasons to believe that manufactured housing should be rising rapidly. Among the factors is a high demand for affordable housing and a drop in interest rates.
The American Enterprise Institute’s (AEI) Housing center data provides further evidence for the points made herein.
The bottom line is simple. MHI claims to be the industry’s post-production trade group that represents “all segments” of manufactured housing. If so, during much of the past 2 years, the industry has been declining since they began promoting their much-touted “CrossModTM” home plan. Unfortunately for their claims of leadership, the program has had very little traction in the marketplace, according the MHI sources and others. One MHI member firm went so far as to say that it has no traction that is visible.
MHI can’t have it both ways.
- If MHI truly represent all segments of the industry including independents and are the ‘industry’ leaders,’ then they are logically responsible for the outcomes.
- MHI touted their plan to keep momentum going with what they originally called their new class of manufactured homes, later renamed “CrossModTM” which they claimed that focus groups were wowed by. If so, where are the results?
It isn’t MHProNews, or MHARR for that matter, but the Modular Home Builders Association that ripped MHI for undermining the millions of HUD Code manufactured homes that already existed with their CrossModTM scheme.
Informed sources tell MHProNews that the only reason that Hardiman and the MHBA still aren’t pressing the matter is because the Clayton-backed, MHI led program has no discernable traction in the marketplace. The MHBA must be laughing their heads off at the waste of time and money by MHI’s visionary ‘leaders.’
MHProNews, MHLivingNews, and MHARR have both been the leading visible voices decrying the program early and often. But several MHI member firms have had management that have quietly chaffed at the plan, as the report linked below reflected.
What is evident is that manufactured housing ought to be soaring but instead is snoring. If it is accidental, then why hasn’t MHI and their leadership learned the lesson and changed course?
But instead, they keep arguably repeating the same mistakes time and again. Even MHI defender Andy Gedo tossed in the towel in trying to defend MHI and their corporate ‘leaders’ once he read their own statements and the evidence
On paper, manufactured housing has the advantage of good laws. But in practice, those laws are being thwarted from within. Who says? How about former MHI-VP and MHARR founding president Danny Ghorbani. Note that a new series of exclusive Q&As with Ghorbani loom on the zoning/placement topic.
Pivoting back to MHI, their big claims with no discernable results is the possible basis for a case against them for deceptive trade practices, not to mention other legal concerns raised by MHI whistleblowers.
Warren Buffett has not hidden his thoughts on the ‘castle and moat’ strategy. They are arguably relevant to our industry but they also impact other professions too.
Kevin Clayton has noted the moat stratagem too, as the addendum to the Andy Gedo quote above illustrated.
Even Bill Gates, before buying into the Buffett vision, thought ill of it. Gates said so himself.
By accident or diabolically clever design, while MHI postures leadership the industry’s independents continue to dwindle in numbers as the industry struggles. Photo opportunities have obviously not changed this trend.
Indeed, President Trump’s rejection – right or wrong – of MHI and their mainstream housing coalition’s plan linked here makes it clear that they don’t have nearly the clout that they claim.
If MHI and their ‘leaders’ have the moxie to try to argue differently, then why do they routinely turn down the opportunity to debate their performance publicly? Why do they use a whisper campaign or try to pretend that they have no detracting voices?
The answer is increasingly clear. Marty Lavin and others like him was correct.
The featured image shows real people. Manufactured home owners, industry workers, and a retailer. It is real people that are harmed by the years of the HUD Code manufactured housing industry’s underperformance. MHI is representing the interests of the big boys, and all others take the back seat. To learn more, see the related reports shown above and/or others below the byline and notices.
Stay tuned for more of what is ‘behind the curtains’ as well as what is obvious and in your face reports. It is all here, at the runaway largest and most-read source for authentic manufactured home “Industry News, Tips, and Views Pros Can Use” © where “We Provide, You Decide.” © ## (Affordable housing, manufactured homes, reports, fact-checks, analysis, and commentary. Third-party images or content are provided under fair use guidelines for media.) (See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them.)
By L.A. “Tony” Kovach – for MHProNews.com.
Tony earned a journalism scholarship and earned numerous awards in history and in manufactured housing.
For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.
This article reflects the LLC’s and/or the writer’s position, and may or may not reflect the views of sponsors or supporters.
Connect on LinkedIn: http://www.linkedin.com/in/latonykovach
The text/image boxes below are linked to other reports, which can be accessed by clicking on them.