Often those factory-builders who construct only modular housing will draw a bright-line distinction between themselves and manufactured homes. In doing so, they may co-mingle dated an inaccurate terminology with manufactured housing, including ‘trailer house’ or ‘mobile homes,’ while making it clear that they are none of the three. Perhaps it is understandable, given what a poor job the HUD Code manufactured home industry’s post-production sector has done in educating the public on these issues.
Tonight’s featured report is an example where a regional news station mistakenly refers to a modular home as a manufactured home. It’s an interesting report in several respects, merits a focused fact-check and analysis accompanied by a reminder for researchers of what the proper terminology ought to be. That will be our featured report tonight on a day when markets initially rose but sank before the closing bell.
Longtime readers please note there are a few tweaks to some of the standard portions of our evening market/investing report. Read carefully as some changes of the ‘standard text’ that follows before our left-right headlines and also in other features near the end of tonight’s reports.
Every evening our headlines that follow provide snapshots from two major media outlets on each side of the left-right news spectrum that reflect topics that influence or move investor sentiment. In moments on this business evening report, you can get ‘insights-at-a-glance.’
This report also 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 headlines left-of-center CNN followed by right-of-center Fox Business. We share closing tickers and other related data courtesy of Yahoo Finance, and more. 5 to 10 minutes reading this MHProNews market report every business night could save you 30 minutes to an hour of similar reading or fact-gathering elsewhere.
Perhaps more important, you will get insights about the industry from experts that care, but also dare to challenge the routine narrative that arguably keeps manufactured housing underperforming during an affordable housing crisis.
Newsy, Peeling Back Media Bias, Manufactured Housing Sales, Investing, Politics, and You
Headlines from left-of-center CNN Business.
- Morgan Stanley slashes jobs – The bank is cutting 1,500 positions, citing ‘economic uncertainty’
- Apple is the best Dow stock this year. Will there be an encore in 2020?
- When the new Mac Pro will be available to order
- Apple might ditch the lightning charging cable
- SoftBank gives up on dog-walking startup Wag after investing $300 million
- Opinion: US stocks won’t be a good bet in 2020. Here’s where to find growth
- Climate change could wipe $2.3 trillion off global stocks
- Amazon claims Trump interfered with Pentagon contract in order to hurt Jeff Bezos
- NASA says moon rocket could cost as much as $1.6 billion per launch
- Virgin Galactic’s stock could soar 726%, Morgan Stanley says
- Paul Volcker, former Fed chairman who fought inflation, dies at 92
- The Volcker Rule explained
- Bill Hemmer to succeed Shep Smith as Fox’s afternoon news anchor
- Startup raises $28 million to tackle retirement industry
- Hundreds of employees walked out of Google’s European headquarters in Dublin on Thursday as part of a global campaign over the US tech giant’s handling of sexual harassment that saw similar protests in London and Singapore.
- Google under investigation for recent firing of four employees
- Elon Musk reveals when Tesla’s electric ATV will go on sale
- Walmart apologizes for Christmas sweater with apparent drug reference
· DESSERT TIME
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· HOW WE SHOP
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- Retailers are scrambling to find holiday help
- The Santa Claus business is booming
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Headlines from right-of-center Fox Business.
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- Trucking company’s bankruptcy just tip of the iceberg for slowing industry
- TRUCKER APOCALYPSE: Thousands of jobs in danger
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- Chinese official: Beijing wants US trade deal ASAP
- Superstar free agent on track to nab one of the biggest contracts in MLB history
- Why City Hall sees your home as a sweet, sweet ATM
- Feds launch probe into Google after company fires outspoken employees
- USMCA trade agreement reached
- WATCH: Lizzo shocks basketball fans with some risqué dance moves
- PHOTOS: Go inside this World Series winner’s luxurious New York condo
- Why fat cats’ pay, bonuses are expected to take a beating this holiday season
- Billionaire pledging millions to take down anti-Semitic political candidates
- Julia Louis-Dreyfus trashes ‘SNL’
- Epstein pal reportedly planning bombshell interview
- Richest US zip code hits 100 years. Here’s a look at life there
- Stocks snap 3-day winning streak, despite positive headlines on trade
- PG&E shares have their best day in months
- Morgan Stanley layoffs coming amid ‘uncertain environment’
- Luxe car company working on ride-sharing app — with self-driving cars
- Towering former Federal Reserve chairman dead at 92
- Amazon blames Trump for missing out on massive Pentagon contract
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- How much college football coaches scored in bonuses this year
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- ‘Offensive’ T-shirt gets plane passenger booted
- High-tech job growth concentrated in five US cities
- How online retailer uses likes and comments when choosing clothes for shoppers
- ‘Homeless hotel’ owners got $12.5 million in rebates, plus tax breaks
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- Russia banned from Olympic Games over doping scandal
10 Market Indicator Closing Summaries – Yahoo Finance Closing Tickers on MHProNews…
Featured Focus – Where Business, Politics, and Investing Meet
Let’s being by noting that as a factory-built housing focused trade publisher, we embrace all lawful forms of factory building that ethically meet consumer needs. So modular construction, other forms of prefabricated building that may include penalization, as well as HUD Code manufactured homes. We tend to focus on manufactured housing, but periodically dip into other forms of factory building too.
What drew our attention to this specific item for a report, beyond a tip, was in part the mixed use of terminology. That was a starting point. But then, unpacking some of this report made this all the more worthy of at least a brief spotlight.
The local news report states that the cost of these units is low. Perhaps in terms of the total cost, but certainly not in terms of the cost-per-square foot. Using the own report’s figures, 70,000 per units divided by a tiny 230 square feet yields some $304.35 per square foot.
The April 2019 U.S. Census Bureau data for single-section manufactured homes in the Western U.S. reveals an average price of some $63,600. Presuming a typical median single-section manufactured home size being a 14×70 (14×66 floor size) being used, that would yield about 884 square feet in nominal size or an average cost per square foot of about $71.95. That’s not California specific, but California is the dominant state in the Western U.S. for new HUD Code manufactured home shipments.
Rephrased there is a gapping difference per square foot between conventional on-site construction, these FactoryOS modular homes, and manufactured home construction as measured in a cost per square foot basis.
That’s not to say that there may be other good reasons to use the FactoryOS modular units. But it is to stress these points.
- If local officials are exploring modular units, are they also exploring HUD Code manufactured homes?
- Clarifying terminology (see chart that follows the local media report).
- It is one more reason why if the enhanced preemption provision of the Manufactured Housing Improvement Act of 2000 was routinely being stressed by the Manufactured Housing Institute (MHI), then more affordable housing would be available to potentially millions of more people in need. That would open business and investment opportunities as a result.
With that tee-up, let’s see what local media had to say. Then MHProNews will conclude with a few final points.
The following are pull quotes from ABC 10.
SACRAMENTO CITY LEADERS EXPLORE MANUFACTURED HOMES AS OPTION TO SOLVE AFFORDABLE HOUSING NEED
- A 230-square foot unit costs roughly $70,000 to build, and can be stacked into apartments or even connected together to add bedrooms.
- VALLEJO, Calif. — As policy makers across California search for affordable housing solutions, Sacramento’s city leaders are exploring manufactured homes as an option.
- Mayor Darrel Steinberg, Vice Mayor Eric Guerra and other city staff toured the FactoryOS home manufacturing plant in Vallejo on Wednesday to check out some of those homes being built.
- Sacramento City leaders have looked into a number of options for affordable housing and to help house the homeless. The need is great and city leaders say they need to look to innovative approaches as solutions.
- Because of that, Guerra said manufactured housing could be an option for some affordable homes in Sacramento.
- “So, we have to think creatively and innovatively of how are we going to provide permanent supportive housing for those who are in critical need — faster,” Guerra said.
The latest MHARR shipment data revealed the following. While California is almost flat, it is still down during a time when demand in California is enormous.
“California has underbuilt for years. Estimates from Beacon Economics put the backlog at about 2.3 million housing units in 2017,” per PPIC.org.
Manufactured housing should be roaring. States like California are among the reasons that should be so. But instead, it is snoring. The industry has good laws that are on the books that MHARR and others wants to see robustly enforced.
Technically, at least on paper, even MHI agrees.
Meanwhile, the industry’s umbrella trade association are busy with photo ops, video ops and posturing while shipments are down year- over-year. Their statements are often contradictory of other actions or inactions by the same or other personality at MHI and/or by member organizations.
Bombshells! Former HUD Manufactured Housing Program Administrator Bill Matchneer, Cavco’s Manuel Santana Statements
It’s embarrassing to the powers that be, or should be.
Pendleton, Harper, Bowersox – Manufactured Housing Associations Carrots & Sticks Report – plus Sunday Weekly Industry Headlines Review 11.24 to 12.1.2019
It is also a wake up call to the industry’s professionals, investors, advocates and others.
See the related reports below, plus watch for more in the days ahead.
SEC, Cavco Industries, Duty to Serve Lending, Investing and Claimed Manufactured Housing Institute Corrupt Practices – Facts & Analysis
More Mixed News on October 2019 Manufactured Housing Production, Shipment Data
Need for Workforce Housing Keeps Vacancy Tight and Rent Rising; Investors Eyeing Communities for Yield and Cash-Flow Potential, Says Marcus & Millichap Research, Analysis
Retailer, Producer, Finance Exclusive – Interview with New Class of Manufactured Housing “CrossMod Homes” Developer-Seller
HUD’s Brian Montgomery – William ‘Bill’ Matchneer Exposé – If the Shoe Fits, Affordable Housing, Manufactured Homes – Impacting American Dreams?
Manufactured Housing Industry Investments 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, a manufactured home industry lender
- NOTE: Drew changed its name and trading symbol at the end of 2016 to Lippert (LCII).
Berkshire Hathaway is the parent company to Clayton Homes, 21st Mortgage, Vanderbilt Mortgage and other factory built housing industry suppliers.
· LCI Industries, Patrick, UFPI, and LP each are suppliers to the manufactured housing industry, among others.
· AMG, CG, and TAVFX have investments in manufactured housing related businesses. For insights from third-parties and clients about our publisher, click here.
Enjoy these ‘blast from the past’ comments.
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Learn more about our evolutionary journey as the industry’s leading trade media, at the report linked below.
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