Promising Start to 2012 ends in Disappointment

MHARRWashington, D.C., February 4, 2013 – 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), the decline in manufactured housing production that began in September 2012 continued in December 2012, leaving overall 2012 industry production higher than the cumulative total for 2011, but disappointing in relation to the strong growth experienced during the first half of 2012.  Just-released statistics for December 2012 indicate that HUD Code manufacturers produced 3,480 homes, a decrease of 8.3% from the 3,798 HUD Code homes produced during December 2011.  Cumulative 2012 industry production thus totaled 54,881 homes, 6.3% higher than the 51,618 homes produced in 2011.   

A further analysis of the official industry statistics shows that the top ten shipment states for the period of August 2011 through December 2012 — with cumulative shipment totals as indicated — are:

1. Texas ——————————– 14,406 homes

2. Louisiana —————————- 5,932 homes

3. Florida ——————————- 3,670 homes

4. Alabama —————————– 3,438 homes

5. North Carolina ———————- 3,323 homes

6. Kentucky —————————– 3,047 homes

7. North Dakota ———————— 2,857 homes

8. Mississippi ————————— 2,819 homes

9. Oklahoma —————————- 2,461 homes

10.Tennessee ————————— 2,424 homes

    The latest information for December 2012 results in no changes to the top ten shipment states.   

    The renewed decline in manufactured home production that became evident during the second half of 2012 is in direct contrast with market data showing growth and a gradual but sustained recovery for the broader housing industry.  This disconnect between the manufactured housing sector and the rest of the housing industry highlights the difficulty and the discrimination that lower and moderate-income families face in obtaining and qualifying for manufactured home financing and, in particular, the sharply-limited availability of personal property financing.  A revival in the availability of consumer financing and especially personal property financing, which has historically provided such homebuyers with their best opportunity to access the industry’s most affordable homes – combined with an increasing number of open spaces within existing manufactured housing communities – offers a significant growth opportunity for the industry (and its consumers) that must be addressed as a priority going forward. 

    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.

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