The headline sums it up. It is now month 10 of year-over-year (YoY) declines in production and shipments of new HUD Code manufactured homes.
This morning, MHProNews posted a significant report linked below on ‘official word’ from one of the top 3 brands in manufactured housing, Skyline Champion. Thoughtful readers need to read that report – packed with direct quotes from Mark Yost, President and CEO of Skyline-Champion (SKY) for what he said to top investors.
MHProNews was the first to raise the warning flag among industry publishers and has arguably stood alone in looking at the underlying causes via a ‘follow the facts,’ ‘follow the money,’ and ‘scrutinize the evidence’ methodology. For newer or first-time readers or those professionals and investors who want an executive summary, see the new report linked with references below.
What follows is the full report today from the Manufactured Housing Association for Regulatory Reform (MHARR). It will be followed by a brief MHProNews commentary.
HUD CODE PRODUCTION DOWNTURN CONTINUES
Washington, D.C., August 5, 2019 – 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), year-over-year HUD Code manufactured home production declined again in June 2019. Just-released statistics indicate that HUD Code manufacturers produced 7,761 homes in June 2019, down 6% from the 8,258 homes produced in June 2018. Cumulative industry production for 2019 now totals 46,682 homes, a decline of 8.2% from the 50,897 HUD Code homes produced over the same period in 2018.
June 2019 thus marks the tenth consecutive month of HUD Code industry production declines despite continuing economic growth and related strong demand for affordable home ownership and housing opportunities. And while short-term market variations are inevitable and to be expected, an extended and continuous drop in the HUD Code market, such as is occurring now, demands solutions and, most importantly, action.
Given the fact that manufactured housing producers today are building their best homes ever and providing a degree of consumer protection that is unparalleled since the enactment of the Manufactured Housing Improvement Act of 2000, MHARR’s ongoing evaluation of this market decline continues to point toward two major factors that the industry must face and resolve. These are, extreme and worsening zoning and placement restrictions on HUD Code manufactured homes and, even more importantly, the domination of the manufactured housing consumer lending market by two or three corporate conglomerates, together with the ongoing failure of Fannie Mae and Freddie Mac to expand that market through the implementation of the Duty to Serve Underserved Markets (DTS) for manufactured housing personal property (chattel) loans. MHARR, as reported previously, has – and will continue to – take specific action to directly address both of these matters. The conglomerates and their representatives, however, continue to virtually ignore a decline which they apparently see as primarily harming their smaller competitors – a posture that is and should be unacceptable to both the industry and consumers as well.
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 2019 — with cumulative, monthly, current year (2019) and prior year (2018) shipments per category as indicated — are:
The latest information for June 2019 results in no changes to the cumulative shipments 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 —
The Manufactured Housing Institute (MHI) and their bootlickers have danced around several issues for months or years on end. So sadly, the issue of underperformance is not unique or new.
Nevertheless, claims made above and below by MHI last year – still on the home page of their website – as shown. Bear in mind that MHI claims to represent all segments of factory-built housing, and therefore logically can be held to account for industry performance and results.
El Paso – Dayton – Chicago and Manufactured Housing; Seriously?
They may not seem at all related to our industry. But think again. Be it violence, drug abuse, suicide, homelessness, and a raft of social clues, there are significant reasons why millions are frustrated. They don’t see the American Dream for themselves. They think the system is rigged and has sold them out. When left and right are both describing the problems in similar terms, that is a signal.
But then shouldn’t the solution be to address the underlying issues?
See the early report today in the related reports below the byline and notices to get a broader view of challenges that spell both opportunity and obstacles.
That’s manufactured housing “Industry News, Tips, and Views Pros Can Use,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)
Submitted by Soheyla Kovach for MHProNews.com.
Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com. Connect with us on LinkedIn here and here.
Click the image/text box below to access relevant, related information.