Affordability has long been a big draw for HUD Code manufactured homes. Indeed, dating back to the mobile home era of the industry, significantly lower purchase prices when compared to conventional ‘site built’ housing have been part of the magnet that attracts customers. Certainly, other factors such as consumers safeguards established by federal standards are a plus. The additional consumers protections provided by the Manufactured Housing Improvement Act (MHIA) of 2000 are value-added claims too. It is with that affordability in mind that the latest Census Bureau data on manufactured housing reveals troubling insights that could prove problematic in the foreseeable future for the millions who must have a low-cost home and those who sell them.

 

Facts matter. Evidence matters. Trends Matter. All of the following data will be unpacked following the latest to MHProNews provided by the U.S. Census Bureau’s official research.

The following is research released by the Census Bureau in December 2021, but reflects figures for July 2021.

 

DECEMBER 2021

Latest Data

July 2021
Average Sales Price (thousands of dollars)	$118.7
Total Shipped (thousands of units) Sold or Leased for Residential Use Placed Not Yet Placed Intended for Sale or Lease for Residential Use Placed Not Yet Placed For Non-Residential or Other Use	7.6 4.4 4.3 0.2 3.0 0.8 2.3 0.1

 

Average Sales Price of New Manufactured Homes by Region and Size of Home

By Month of Shipment

(Dollars) 

	United States
	Total1	Single	Double
2021
July	118,700	76,000	137,800
June	106,800	70,200	128,100
May	106,500	69,900	128,300
April	100,200	66,700	122,500
March	98,100	63,300	123,200
February	98,300	65,400	122,500
January	95,000	64,100	118,500

 

	Northeast
	Total1	Single	Double
2021
July	98,500	74,100	125,700
June	101,600	73,700	124,200
May	98,400	69,900	121,500
April	95,900	73,800	113,300
March	91,400	58,600	121,300
February	88,300	59,400	113,800
January	102,600	67,900	116,200

 

	Midwest
	Total1	Single	Double
2021
July	110,500	79,100	139,300
June	94,900	65,600	125,800
May	94,300	67,500	128,200
April	85,400	61,800	125,400
March	86,400	60,800	119,100
February	87,300	62,400	118,100
January	83,000	62,100	112,700

 

	South
	Total1	Single	Double
2021
July	119,200	74,500	137,100
June	107,500	70,700	128,000
May	109,900	70,600	129,200
April	100,400	67,700	122,200
March	98,100	63,700	122,400
February	98,100	67,100	121,800
January	94,000	64,600	117,300

 

	West
	Total1	Single	Double
2021
July	131,100	81,700	142,800
June	116,400	72,200	131,500
May	104,400	70,300	125,500
April	118,400	65,000	125,000
March	113,000	67,300	130,800
February	116,900	60,900	131,900
January	113,400	62,300	129,500

 

According to the Census Bureau: “The methodology used beginning in August 2014 involves contacting the dealer four months after the unit was shipped to ask about the status of the unit. The dealer is asked to report a sales price if the unit is already sold and placed for residential use or to report an intended sales price if the unit is intended for sale and for residential use. The dealer is no longer contacted each month until the unit is placed. Estimates of average sales price include both actual sales prices and intended sales prices.”

Another change that should be noted, which is not in the Census Bureau methodology description, is that they are now showing ‘for sale or lease.’ For years, this data was sales data with no mention of rental or leased units.

 

Additional Information, More MHProNews Analysis and Commentary 

These Census Bureau facts published on 12.7.2021 have several implications that forward-looking manufactured home professionals ought to be aware of, such as the following.

1. FHA Maximum Loan Amounts.
2. The Pending DOE “Two Tiered” Energy Rule Plan
3. Loss of Prospective Customers (and thus sales) caused by the “Priced Out” effect documented by the National Association of Home Builders.
4. Manufactured Home Trade Advocacy Implications

Each of those will be examined by providing the following facts.

1. According to HUD/FHA is the following on FHA Title I lending limits.

Purpose of the Loan

A Title I loan may be used for the purchase or refinancing of a manufactured home, a developed lot on which to place a manufactured home, or a manufactured home and lot in combination. The home must be used as the principal residence of the borrower.

Manufactured Homes Placed on a Leased Lot

For Title I insured loans, borrowers are not required to purchase or own the land on which their manufactured home is placed.  Instead borrowers may lease a lot, such as a site lot within a manufactured home community or mobile home park.  When the land/lot is leased, HUD requires the lessor to provide the manufactured homeowner with an initial lease term of 3 years.  In addition, the lease must provide that the homeowner will receive advance written notice of at least 180 days, in the event the lease is to be terminated.  These lease terms are designed to protect homeowners in case the lessors sell the land or close the park.

Maximum Loan Amount

• Manufactured home only – $69,678
• Manufactured home lot – $23,226
• Manufactured home & lot – $92,904

Maximum Loan Term

• 20 years for a loan on a manufactured home or on a single-section manufactured home and lot
• 15 years for a manufactured home lot loan
• 25 years for a loan on a multi-section manufactured home and lot” ##

Manufactured housing already had very low totals being financed via FHA Title I lending. But the latest data reveals that the maximum loan on FHA Title I is now lower than the average sales price for a new HUD Code manufactured home single section. Unless FHA/Ginne Mae addresses this and other pending issues, the already minimal (reportedly perhaps a few dozen annually) levels of manufactured homes being financed by FHA Title I will drop further. Why are these facts not brought forward and dealt with by MHI?

2) As Utility Dive said about the pending Department of Energy (DOE) two-tiered energy rule for manufactured housing in on 12.2.2021: “The proposal’s “tiered” approach would leave manufactured homes priced below $63,000 subject to less stringent requirements.”  The Manufactured Housing Association for Regulatory Reform (MHARR) rejected the entire proposal, based on information they’ve provided linked below. But as MHProNews previously noted, the lower tier is essentially a head fake. At the recent record rates of inflation in Biden’s America, the proposed ‘lower tier’ is an illusion.

 

3) Loss of Prospective Customers (and thus sales) caused by the “Priced Out” effect documented by the National Association of Home Builders.

The National Association of Home Builders (NAHB) is hardly an ally of manufactured housing. So, when NAHB says that every thousand dollars of price increase costs large numbers of potential customers, manufactured housing pros should sit up and take notice.

Look at the top lines for the same U.S. data shown above per the Census Bureau for 2020 and 2019, shown below.

 

	United States
	Total1	Single	Double
2019
December	86,400	54,400	105,700
November	81,600	52,100	107,100
October	81,700	53,900	103,800
September	81,500	55,600	101,800
August	84,100	49,200	107,900
July	82,000	54,000	106,500
June	84,400	52,800	103,800
May	78,100	53,800	98,100
April	78,900	55,700	100,700
March	78,900	50,400	102,100
February	85,000	52,600	107,600
January	81,800	53,400	103,400

	United States
	Total1	Single	Double
2020
December	90,200	62,600	110,800
November	92,600	63,500	112,800
October	89,400	57,200	110,000
September	87,300	58,300	107,800
August	88,200	57,700	109,300
July	84,200	59,800	102,700
June	85,600	52,900	109,800
May	85,900	55,200	109,100
April	86,900	53,300	108,200
March	82,900	53,800	106,900
February	83,400	55,600	107,500
January	86,400	55,300	107,900

So, applying the data per the NAHB, every 1000 price hike cost the industry some 127,500 possible buyers. From January 2019 to July 2021 the $10,300 jump in price of a single section manufactured home has knocked out 1,364,250 households from buying manufactured housing.  These are individuals who in many cases would only qualify for a manufactured home, due to their income.

 

 

4) Manufactured Home Trade Advocacy Implications

One job of all genuine journalism is to hold the powerful to account and to act as a watchdog. The fact that these data-driven insights are not coming from the Manufactured Housing Institute (MHI) is just one more example of how weak their P.E.P. approach apparently is. “Protect, Educate, Promote” – P.E.P. is aptly said by a veteran MHI affiliated Manufactured Housing Executives Council (MHEC) to be the guideposts for a good trade group. But as our new report, linked below, on Sun Communities reflects, there are a range of issues that MHI is apparently not acting on behalf of all in the industry, but are instead apparently working for consolidation. That’s not just troubling, it arguably raises a range of legal issues.

Additionally, there are a range of ‘good news’ stories about manufactured housing that have not been, or are not being, properly spotlighted and advanced by MHI.

These are evidence-based points – a.k.a. facts – that MHI does not publicly debate. Why not? Could it be that they have no good answers?

 

##

Next up is our business daily recap of yesterday evening’s market report, related left-right headlines, and manufactured housing connected equities.

The Business Daily Manufactured Home Industry Connected Stock Market Updates.  Plus, Market Moving Left (CNN) – Right (Newsmax) Headlines Snapshot. While the layout of this daily business report has been evolving over time, several elements of the basic concepts used previously are still the same. For instance. The headlines that follow below can be reviewed at a glance to save time while providing insights across the left-right media divide. Additionally, those headlines often provide clues as to possible ‘market-moving’ news items.

 

Market Indicator Closing Summaries – Yahoo Finance Closing Tickers on MHProNews…

Headlines from left-of-center CNN Business – from the evening of 12.15.2021

• Picking up the pace
• Jerome Powell, chairman of the U.S. Federal Reserve, listens during a House Financial Committee hearing in Washington, D.C., U.S., on Wednesday, Dec. 1, 2021.
• The Federal Reserve signals multiple rate hikes are coming in 2022 to fight inflation
• LIVE UPDATES Stocks pop after Fed signals rate hikes in 2022
• The Fed’s huge challenge: Taming inflation, without starting a recession
• How millions of jobless Americans can afford to ditch work
• Wall Street has fallen in love with bowling
• The Log4j security flaw could impact the entire internet. Here’s what you should know
• Britain’s nightmare economy of the 1970s may be making a comeback
• Apple faces Labor Department investigation as tensions with employees escalate
• Pfizer CEO: Big mistake to think Covid-19 pill will replace vaccines
• Paris taxi firm suspends Tesla fleet after fatal accident
• Harley-Davidson is spinning off its electric motorcycle brand
• China was already facing a slowdown in 2022. Now here comes Omicron
• ‘Diet’ soda is disappearing from store shelves
• A woman walks by a Dollar General store on December 11, 2018 in the Brooklyn borough of New York City.
• Dollar General is putting workers’ safety at risk, Labor Department says
• Elon Musk calls Elizabeth Warren ‘Senator Karen’ in fight over taxes
• Kraft Foods Group Inc. Philadelphia cream cheese tubs are arranged for a photograph in Fog Hill Market in San Francisco, California, U.S., on Tuesday, Feb. 5, 2013.
• Kraft will pay you $20 not to make cheesecake for Christmas
• YOUR MONEY
• The backdoor Roth IRA may be on the chopping block. What you can do now
• 5 to-do items if you want to retire in 10 years
• Why the yuan is doing better than the USD
• Gas prices could fall below $3 soon, govt. forecasts
• Are you having trouble affording holiday gifts? Share your story
• OPINION
• Travelers wear masks as they wait in a line for a TSA security check, Friday, Dec. 10, 2021, at Seattle-Tacoma International Airport in Seattle.
• Omicron and Delta be damned: Americans won’t stop flying
• A chance to help low-income Americans with inflation
• Intel CEO: The best way to fix America’s chip shortage
• 3 jobs trends to look out for next year
• 3 reasons it’s so hard to hire — and what to do about it

Headlines from right-of-center Newsmax – evening of 12.15.2021

• Politico Poll: 67 Percent of Independents Don’t Want Biden to Run Again
• President Joe Biden walks away from the podium at the White House back in August after delivering remarks on the chaotic troop withdrawal from Afghanistan. (AP)
• It’s been less than a year in the Oval Office for Joe Biden, and a new poll is reinforcing notions that support for him is waning. The poll points to growing weakness among all-important independent and moderate voters. [Full Story]
• Newsmax TV
• ‘Miracle on Ice’ Capt. Eruzione: Send Athletes to Beijing Games | video
• Dick Morris: If Putin Is Hitler, Tucker Carlson Is Neville Chamberlain | video
• Tenney: Victims Fund Should Get Andrew Cuomo’s Book Proceeds | video
• Ron Johnson: ‘Democrat Governance Has Been a Disaster’ | video
• Mark Meadows: Text Leak Exposes Witch-Hunt, Not Trumps | video
• Marshall: Unvaccinated Military Won’t Get ‘Dishonorable Discharge’ | video
• Buck: Build Back Better Hinders Freedom from Government | video
• More Newsmax TV
• ‘Christmas in America’
• Donald Trump to Newsmax: Despite ‘Woke’ Cancel Culture, ‘America Loves Christmas’ | video
• Trump: Christmas, Energy Cost More Thanks to Biden | video
• Trump: NY a ‘Very Different Place; Changed a Lot’ | video
• Trump: Biden Broke Our Now ‘Very Dejected’ Troops’ Spirit | video
• Mike Huckabee Hosts Christmas Special Featuring Trump
• More ‘Christmas in America’
• Newsfront
• Senate Sends Biden Big Defense Bill, Plans New War Memorial
• Congress sent President Joe Biden a $768.2 billion defense bill on Wednesday that makes landmark changes to the way the military handles sexual assaults, keeps women out of the draft and lays the groundwork for a new war memorial on the National Mall.The annual bill, which…… [Full Story]
• Politico Poll: Independents Don’t Want a 2024 Biden Run
• In the all important independent and moderate sections of the [Full Story]
• NYC Weighs Cutting Off Natural Gas Hookups for New Buildings
• New York City lawmakers are poised to decide Wednesday whether to [Full Story]
• Former Acting DNI Ric Grenell Tapped as Newsmax VP, Analyst
• Newsmax Media Inc. announced Wednesday that Richard Grenell, former [Full Story]
• Fauci: Vaccines Don’t Need to Be Changed to Target Omicron – For Now
• COVID-19 vaccines don’t currently need to be changed to target the [Full Story]
• Related
• WHO: COVID-19 Vaccines May be Less Effective Against Omicron
• Court Revives Biden’s COVID-19 Vaccine Mandate for Healthcare in 26 States
• Biden Ramps Up Fight Against Drug Traffickers With Fresh Sanctions
• President Joe Biden signed two new executive orders intended to fight [Full Story]
• Cure for Smash-and-Grab Crime Epidemic Is ‘Aggressive Proactive Policing’
• Law enforcement officials say the most effective way to curb the [Full Story] | Platinum Article
• Ted Cruz: Biden, Democrats Pouring Gas on ‘Inflation Fire’
• Ted Cruz slammed President Joe Biden and Democrats on Wednesday [Full Story]
• Progressives Slam Musk as Time’s Person of the Year, Praise Biles as Athlete of the Year
• Despite a 12-month run during which he launched ordinary people into [Full Story] | Platinum Article
• Fed Sees Three Rate Hikes in 2022 as Inflation Battle Begins
• The Federal Reserve, signaling its inflation target has been met, [Full Story]
• Ex-Clinton Adviser Says Economy Will Determine Midterms
• An ex-adviser to former President Bill Clinton wrote a memo, which [Full Story]
• Matthew McConaughey on Running for Office: ‘I’m Never Going to Say Never’
• Twitter Cracks Down On Vaccine Tweets
• Twitter is getting tough on misleading vaccine tweets.The social [Full Story]
• Commerce Secretary Raimondo’s Husband Top Exec With China-Backed Company
• Commerce Secretary Gina Raimondo appears to have a conflict of [Full Story]
• NFL Donates Money to Groups That Support Defunding the Police
• The National Football League has pledged $250 million in donations to [Full Story]
• Trump: New York AG’s ‘Witch Hunt’ Resumes After ‘Complete Failure’ Gubernatorial Campaign
• Former President Donald Trump said Wednesday that New York State [Full Story]
• Amazon’s Cloud Down Briefly — Affecting Netflix, Slack, DoorDash
• com Inc said Wednesday that its cloud service, Amazon Web [Full Story]
• Chauvin Pleads Guilty to Federal Charges in Floyd’s Death
• Former Minneapolis police Officer Derek Chauvin pleaded guilty [Full Story]
• US Shelving Plans to Reopen Pro-Palestinian Consulate in Jerusalem: Report
• The Biden administration has “effectively shelved” plans to reopen [Full Story]
• Duncan Seeks to Stop Federal Funding for Cities Allowing Noncitizens to Vote
• Jeff Duncan planned to introduce a bill to stop federal funding [Full Story]
• Rubio Questions Biden Over ‘Downgrading’ of Taiwan
• Marco Rubio on Wednesday sent a letter to President Joe Biden [Full Story]
• LAPD Releases Video to Public, Tries to Stymie Follow-Home Robberies
• The Los Angeles Police Department has released a video of an armed [Full Story]
• Democrats Split Over How Hard to Push Manchin With Social Spending Bill
• Joe Manchin continues to pose a problem for fellow Democrats [Full Story]
• Biden Administration Set to Release More Secret JFK Documents
• The Biden administration is expected to release some secret documents [Full Story]
• Lawmakers Call for Sanctions Against Israel’s NSO, Other Spyware Firms
• A group of U.S. lawmakers is asking the Treasury Department and State [Full Story]
• US Airlines to Defend $54B COVID-19 Government Lifeline
• Major U.S. airlines Wednesday will defend a $54 billion COVID-19 [Full Story]
• US Navy Fires Laser Weapon in Mideast Amid Drone Boat Threat
• The U.S. Navy announced Wednesday it tested a laser weapon and [Full Story]
• Congress Votes to Increase Debt Limit to $31.4T
• The U.S. Congress on Tuesday approved raising the federal [Full Story]
• House Votes 222-208 to Hold Meadows in Contempt
• The House voted Tuesday to hold former White House chief of staff [Full Story] | video
• Schumer Wants Weekend Votes on Biden Nominees
• Senate Majority Leader Chuck Schumer, D-N.Y., said Tuesday he will [Full Story]
• House Passes Measure Clamping Down on Products From China’s Xinjiang
• The House of Representatives passed legislation on Tuesday to ban [Full Story]
• More Newsfront
• Finance
• Fed Sees Three Rate Hikes in 2022 as Inflation Battle Begins
• The Federal Reserve, signaling its inflation target has been met, said on Wednesday it would end its pandemic-era bond purchases in March and pave the way for three quarter-percentage-point interest rate increases by the end of 2022…. [Full Story]
• Stocks Rise on Wall Street After Fed Dials Back Stimulus
• Airbus Wins Order to Renew Qantas Fleet
• Metropolitan Opera to Require Booster Shots for Audiences as COVID Concerns Grow
• US Treasury Yields Rise, Curve Flattens After Fed Statement
• More Finance
• Health
• Fauci: Vaccines Don’t Need to Be Changed to Target Omicron – For Now
• COVID-19 vaccines don’t currently need to be changed to target the omicron variant, Dr. Anthony Fauci said Wednesday…. [Full Story]
• FDA Approves First Drug for Graft vs. Host Disease Prevention
• Many Seniors on Medicare Falling Into Medical Debt
• Israel to Tax Sugared Drinks Starting January
• CDC Warns of Coming Omicron Wave

 

Manufactured Housing Industry Investments Connected Equities Closing 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).
                          • NOTE: Deer Valley was largely taken private, say company insiders in a message to MHProNews on 12.15.2020, but there are still some outstanding shares of  the stock from the days when it was a publicly traded firm.  Thus, there is still periodic activity on DVLY.

• 

  

• 

  

   

  

  • As 2021 draws to a close…Berkshire Hathaway is the parent company to Clayton Homes, 21^st 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.MHProNews. MHProNews – previously a.k.a. MHMSM.com – has celebrated our 11th year of publishing, and is starting our 12th year of serving the industry as the runaway most-read trade media.

    Sample Kudos over the years…

    It is now 11+ years and counting…

    Learn more about our evolutionary journey as the industry’s leading trade media, at the report linked below.

    · For expert manufactured housing business development or other professional services, click here.
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    Disclosure. MHProNews holds no positions in the stocks in this report.

    

    

    

    

    That’s a wrap on this installment of “News Through the Lens of Manufactured Homes and Factory-Built Housing” © where “We Provide, You Decide.” © (Affordable housing, manufactured homes, stock, investing, data, metrics, 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.
    Tony earned a journalism scholarship along with numerous awards in history. There have been several awards and honors and also recognition 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.