Marcus and Millichap (MMI) is one of the manufactured home connected firms tracked in our evening/nightly closing stock tickers and markets reports. MMI brokers commercial real estate, including manufactured home communities. The firm tracks and provide research reports on several relevant topics for housing and manufactured home industry professionals. On a mixed day on the markets and in manufactured home connected stocks, tonight’s featured report is an MMI report to MHProNews today that draws a correlation between jobs, housing, and retail. That segment of this evening’s report follows the headlines and other broader market overview.
Every evening our headlines snapshots from two major media outlets on each side of the left-right news spectrum reflects topics that influence, reflect, or move investor sentiment. In minutes, you can get information-at-a-glance. This sets the broader context for manufactured housing markets, in keeping with our mantra, “News through the lens of manufactured homes, and factory-built housing.” ©.
We begin with CNN, then cover Fox Business, provide data courtesy of Yahoo Finance, and more. 5 to 10 minutes reading this report every business night can save you 30 minutes to an hour of similar reading or fact-gathering elsewhere.
Headline Bullets from CNN Money
- This robot knows how you’re feeling
- She’s developing AI that can read emotions. It’s not as creepy as it sounds
- A $15 minimum wage started as a slogan. This week, it’s set to pass the House
- Dow, S&P 500 and Nasdaq Composite close at new record highs
- EBay hopes to cash in if Amazon crashes on Prime Day
- The best way to spot a scam on Amazon Prime Day
- Amazon Prime Day is the Super Bowl of shopping. Here’s how that happened
- This beer has a twist that’s out of this world
- Chipotle has fully recovered from its E. coli problems
- Maxine Waters has a plan to ban Libra and other Big Tech cryptocurrencies
- How Trump could kick off a currency war
- Why some Amazon workers are going on strike on Prime Day
- Twitter says Trump’s racist tweets don’t break its rules
- Chobani hopes nut butters will give yogurt a boost
- Burger King is now selling $1 tacos nationwide
- People splurge on pet food but not snacks
- Hershey’s is changing the look of its candy bar
- Dunkin’ bet on better breakfast. It’s paying off
- DIVERSITY IN THE WORKPLACE
- Uber will tie executive compensation to meeting diversity goals
- Their job is to teach companies to do the right thing
- Minority employees are often asked to work ‘double duty’
- Why Intel made a hotline for unhappy workers
- The gender gap isn’t about pay. It’s about what you do
Headline Bullets from Fox Business
- Mnuchin ‘Not Comfortable’ With Facebook Launching Libra
- Wall Street closes at fresh records for second-straight day
- Oklahoma AG calls Johnson & Johnson ‘kingpin’ in state’s opioid crisis
- Boeing poised to lose key title to Airbus
- Kudlow Rips Doom And Gloom Critics: US Economy Experiencing ‘Strong Prosperity Boom’
- Don’t always believe what you read.
- Novak Djokovic’s record career earnings rise with Wimbledon championship purse
- NYC blackout turns up heat on Bill de Blasio as utility company warns of more power outages
- Trump defends ‘go back’ tweets about Democratic reps, denies they were ‘racist’
- Joe Biden unveils ObamaCare 2.0 plan, challenges rivals over government-run approach
- Brain-controlled robot hand with sense of touch helps Medal of Honor recipient
- US tax system nearly ‘impossible’ for average person to navigate, watchdog says
- Best Amazon Prime Day deals on Apple products
- Prime Day is happening now, and Amazon said it’s offering more than a million deals during the 48-hour sales event.
- Amazon started a new retail revolution: Former Toys R Us CEO
- Amazon Prime Day is Christmas in July, said Gerald Storch.
- Amazon Prime Day sales: Early estimate shows gain from last year
- Early estimates predict Amazon will see a large increase in sales during this year’s Prime Day compared to previous events.
- US-China trade negotiations: Moral authority is great leverage against China, Jimmy Lai says
- Bitcoin price tumbles following Trump’s criticism
- Trump to require increased use of US steel, iron in federal projects
- Google denies Peter Thiel’s allegation of ‘treasonous’ links to China
- House Dems raised $29M in second quarter for campaigning: Report
- Democrats to push $15 minimum wage amid party infighting
- Good time to refinance your mortgage?
- Juul CEO Kevin Burns apologizes to parents amid teen vaping epidemic
- ‘Big Three’ US automakers kick off contract talks with labor union
- TSA memo reveals flaws in security checks of food, other items
- Facebook’s Libra is a step beyond bitcoin: Tech analyst
- Fed’s Powell sets stage for interest rate cut
Yahoo Finance Closing Ticker for MHProNews…
Tonight’s MH Market Spotlight Report –
MHProNews will tee up tonight’s feature – a release from Marcus and Millichap (MMI) – with this simple observation. Construction of multifamily housing dwarfs manufactured home communities. While investing in land-lease communities is healthy, apartments and other forms of rental or conventional housing dwarfs investments in the manufactured housing industry’s counterparts to those same businesses. For those with moxie and vision, that can reflect opportunity in disguise.
Per MMI, Robust Job Growth Underscores Confidence in Multi-Family Retail Sectors
Recent hiring trends fall below pre-tax stimulus job growth. Employers created 224,000 jobs in June, bringing the total so far this year to 1.03 million. That is the lowest first-half sum since 2010, although comparable periods in 2016 and 2017 reported only slightly higher employment growth. The fiscal stimulus from tax reform encouraged greater hiring in 2018, but as those effects fade, staffs are expanding at a slower pace, further hindered by historically low unemployment.
Tight job market keeps Class C multifamily vacancy low. Greater employment and continued household formation are driving housing demand, particularly for rentals. Unemployment and apartment demand continue to move in sync as individuals with a range of experiences and education levels find opportunities. The correlation is especially strong for Class C units, which serve the broadest renter pool. The second quarter ended with a 3.7 percent unemployment rate and a Class C vacancy rate of 3.5 percent, a near-20-year low. High renter interest and limited availability are propelling effective rents up at a class-leading pace.
Higher earnings bolster discretionary spending, driving demand for retail services. Tight labor market conditions support an annual pace of wage growth above 3 percent, helping lift retail sales by a similar margin. Spending is improving at an even faster rate at restaurants and bars, up 3.6 percent year over year in May. Consumers continue to gravitate toward social experiences and the convenience of eating out, making dining an important driver of foot traffic for retail centers. Spending in grocery stores is also rising at a steady clip, prompting more store openings, especially for smaller format locations. Solid demand factors paired with subdued retail construction will contribute to one of the lowest vacancy rates in 20 years at the end of 2019 and rent growth above the cycle average.
Labor market entrants decline amid hiring shortage. Total job openings continue to surpass the number of unemployed by about 20 percent. The strength of the labor market is empowering employees to change jobs more frequently, raising the number of people quitting their current position in favor of another. At the same time, the labor pool has tightened due to factors such as education. Labor force participation for people between the ages of 20 and 24 is lower compared with past cycles as more young people stay in school longer to obtain advanced degrees.
Higher earnings, trade tensions raise inflation risk. Stable wage growth aided by a labor shortage and the impact of existing tariffs may be behind the recent appreciation in consumer prices. Core CPI rose 0.3 percent in June, the highest monthly increase since January 2018, for a 2.1 percent annual gain. Inflation has been subdued this year despite upward economic pressures, which could begin to manifest in the near future.
MHProNews Reaction to MMI Report:
Properly understood, the information from MMI is one more data-point that should tell manufactured housing professionals and investors that the industry should be roaring. That it is snoozing – some reasons why – and that it need not be so are covered in the related reports, linked below. Another data point is that the industry is lagging far behind the RV industry – by some 5 to 1, when 2 decades ago, the RV industry was outpaced by MH by a ratio of some 3 to 2.
Manufactured Housing Industry Connected Closing Equities Tickers
Some of these firms invest in manufactured housing, or are otherwise connected, but may do other forms of investing or business activities too.
- NOTE: The chart below includes the Canadian stock, ECN, which purchased Triad Financial Services.
- NOTE: Drew changed its name and trading symbol at the end of 2016 to Lippert (LCII).
- LCI Industries, Patrick, UFPI, and LP all supply manufactured housing.
- AMG, CG and TAVFX have investments in manufactured housing related businesses.
- Your link to an example of industry praise for our coverage, is found here and here. For the examples of our kudos linked above…plus well over 1,000 positive, public comments, we say – “Thank You for your vote of confidence.”
- For expert manufactured housing business development or other professional services, click here.
- Disclosure. MHProNews holds no positions in the stocks in this report.
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