“Six of the eight legislators who endorsed the idea [of rent control] will be in the majority next year,” said the 11.21.2022 issue of CapCon, the nonprofit news publication produced by the Mackinac Center for Public Policy. So, Michigan Capitol Confidential’s headline proclaimed: “Rent control could be coming to Michigan mobile home parks.” CapCon noted in their caption under a photo of a manufactured home land lease community that “Though rent control is common in California and New York, economists conclude they have negative effects.” Note that while this report uses a Michigan specific example, the topic of rent controls has been increasingly common in states such as Iowa, Colorado, and North Dakota, to name but a few places where the push for rent controls has emerged in the manufactured home community space. The claim about the negative effect of rent control has been topic periodically explored by MHProNews/MHLivingNews. To CapCon’s point, it should be noted that per some economists, one of the common effects of rent control is that it dampens the construction of new properties.
The video above was posted on YouTube in 2014 while the video below was posted in 2019. While distinctive, each makes a broad point similar to what the Mackinac Center for Public Policy has made.
That noted, the rate of new manufactured housing community development could hardly be lower than it has been in the 21st century. See related facts about the dwindling numbers of land lease manufactured home communities in the U.S.A.
Resident groups routinely want to see rent control imposed once manufactured home communities change hands, and companies dramatically hike site fees. Additionally, firms such as prominent Manufactured Housing Institute (MHI) member Equity LifeStyle Properties (ELS) has said during published earnings calls that they have learned how to successfully navigate in a rent-controlled environment. Clearly, if ELS can ‘navigate’ rent control regulations, then so to can other MHI members that are focused on consolidating the ‘fragmented’ land-lease community sector.
Those points noted, Mackinac’s about us page says: “The Mackinac Center for Public Policy is a nonprofit research and educational institute that advances the principles of free markets and limited government. Through our research and education programs, we challenge government overreach and advocate for free-market approaches to public policy that free people to realize their potential and their dreams.” In an era of widespread government overreach that routinely impacts smaller firms more than larger ones, the work of the Mackinac Center for Public Policy may be significant to independent and mom and pop types of operations.
With that brief backdrop from the broader rent control vantagepoint to more manufactured home specific views on the subject, the text of CapCon’s report is provided under fair use guidelines below and will be followed by additional information with more MHProNews analysis and commentary. The author of the report, John LaPlante is described as a “Contributing Editor and Senior Fellow” “to the Mackinac Center, he has done editorial work for a number of state-focused think tanks and national advocates for policy change,” per their website. The third-segment further below of today’s Daily Business News on MHProNews report will be our signature left-right headlines review and the recap of the manufactured housing connected equities for 11.25.2022. The original article below on CapCon is found at this link here.
I.
Rent control could be coming to Michigan mobile home parks
Six of the eight legislators who endorsed the idea will be in the majority next year
By John LaPlante
When control of the Michigan Legislature switches to Democrats in January, expect some bills that have not received attention under Republican control to get more traction. Two possible bills would impose rent controls on mobile home parks.
House bills 5396 and 5397 were introduced in the Michigan House by Rep. Darrin Camilleri, D-Brownstone in October 2021. They would put price controls on lot rents and require park owners to get state government permission to raise rents
House Bill 5396 would limit lot rent increases during a year to no more than the general inflation rate, as measured by the CPI, or consumer price index.
House Bill 5397 would require any person or company that owns a mobile home park to get the permission of a state commission before raising lot rents. Owners would need to notify the government at least six months before the increase goes into effect.
The Michigan Manufactured Housing Commission, whose members are appointed by the governor, would oversee the requirements. Its members include local government officials, mobile home manufacturers, home dealers, organized labor and park residents.
Advocates of government-imposed limits say that mobile home park residents need them. “Unlike a normal landlord-tenant situation, they can’t just pick up and move. Moving your home is costly and difficult,” one New York official told the New York Post in 2019. Rent controls are politically popular; according to an Oct. 22 article published by the Santa Clara Press Democrat, 104 local governments in California impose rental control on lot rentals.
But efforts to establish controls ran into significant opposition in another state last month. Legislators in Colorado were considering a rent control law, and Gov. Jared Polis, a Democrat, threatened to veto a bill that would have create statewide rent controls on mobile home lots in the Centennial State. According to Colorado Public Radio, Polis was concerned that the measure could lead to some parks being closed or abandoned.
Economists are skeptical of rent controls, though the issue of rent control is usually framed in terms of apartments rather than mobile home parks. In a recent online poll conducted by the University of Chicago, only one of 25 academic economists who expressed an opinion on rent control thought it was beneficial. David Autor, an economics professor at MIT, wrote, “Rent control discourages supply of rental units. Incumbent renters benefit from capped prices. New renters face reduced rental options.”
Both HB 5396 and HB 5397 are sitting in the Committee on Regulatory Reform, with one sponsor and seven co-sponsors, all Democrats. Five of the the legislators will serve in the next House or Senate, including Camerilli, who will move from the House to the Senate.
Michigan Capitol Confidential sent an email to Camerilli’s official e-mail account. As of press time, he did not reply.
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective. ##
II. Additional Information with More MHProNews Analysis and Commentary in Brief
MHProNews has previously cited the thinking of business-economic author Carol Roth, who has pointed out the regulations routinely weigh more heavily on smaller firms than larger ones.
Roth’s thinking would arguably fall broadly in line with that of the Mackinac Center. But as noted in the preface that led into CapCon’s concise report on the Michigan rent control topic, unlike the apartment or even single-family rental home business sectors, those businesses continue to witness the development of new communities and even ‘build to rent’ single-family properties. The manufactured home market has arguably been subjected to inordinate market manipulation from a range of sources throughout the 21st century. Meaning, manufactured home communities are hardly a normal economic case study. The rules of economics are not therefor suspended, but the typical analysis may not be as cut and dried as it might be in other aspects of mainstream U.S. housing markets.
Antitrust, market manipulation, and RICO laws exist precisely because of the distortions and public harm that can occur in a marketplace when normal ‘free economy’ rules are not being allowed to properly operate. The late Robert “Bob” Van Cleef – a pro-manufactured housing owner, land-lease community resident, and advocate for his community and other residents – made the argument that Florida and other states had anti-price gouging laws that kick into effect temporarily during the aftermath of a disaster such as a hurricane. He said something similar is needed in the land-lease community sector.
We need to be able to distinguish truth from falsehood, and we should not treat false propositions as somehow as valuable as true ones, simply because they are someone’s deeply held beliefs. https://t.co/hGtNakYozX via @NCRonline
— Bob Van Cleef (@van_cleef) June 8, 2021
Practical Wisdom… https://t.co/x0ODkVRjV3
— Bob Van Cleef (@van_cleef) November 14, 2020
To elaborate on Van Cleef’s perspective on ‘temporary’ rent controls that act in a similar fashion to anti-price gouging laws, the example of the prominent and notorious MHI member Frank Rolfe should come to mind. Rolfe has boldly said that there should be no more manufactured home communities built. The obvious economic impact of that is that manufactured home community site fees would tend to rise more rapidly, precisely because of an artificially created scarcity in an environment of increasing demand.
Rigorous antitrust probes and enforcement in a classical, vs. more recent, style that aimed to curb consolidation and preserve the benefits of free markets for consumers and smaller businesses is an approach explored by third-party researchers such as Samuel “Sam” Strommen with Knudson Law or James A. “Jim” Schmitz Jr. and his colleagues, several of whom are with the Minneapolis Federal Reserve.
Manufactured housing is not the typical left-vs.-right policy battleground. Why not? Perhaps it could be blamed to some degree on the follow-the-leader effect sparked by mega-billionaire and crony capitalist market manipulation master, Warren Buffett.
The truth is there to find in the manufactured housing arena. But one must be willing to sift through the competing claims, as well as the deception and misdirection that is deployed by various interest groups in order to find the reality behind the forces that have caused manufactured housing to underperform during a well-publicized affordable housing crisis. Do as thousands of others do daily, and see the related reports linked herein to learn more. Few publications have more clicks through to related content than MHProNews, which has a far larger pages per visit than much of mainstream media, as data about reader engagement as measured by pageviews at CNN and others reflects.
Daily Business News on MHProNews Markets Segment
The modifications of our prior Daily Business News on MHProNews recap of the recap of yesterday evening’s market report are provided below. It still includes our signature left (CNN Business) and right (Newsmax) ‘market moving’ headlines. The macro market moves graphics will provide context and comparisons for those invested in or tracking manufactured housing connected equities.
In minutes a day readers can get a good sense of significant or major events while keeping up with the trends that are impacting manufactured housing connected investing.
Reminder: several of the graphics on MHProNews can be opened into a larger size. For instance: click the image and follow the prompts in your browser or device to OPEN In a New Window. Then, in several browsers/devices you can click the image and increase the size. Use the ‘x out’ (close window) escape or back key to return.
Headlines from left-of-center CNN Business – from the evening of 11.25.2022
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- Tesla recalls more than 80,000 cars sold in China
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- In Britain, nearly 200,000 workers are striking on Black Friday
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- Elon Musk says he will begin restoring previously banned Twitter accounts next week
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- 03 September 2020, Brandenburg, Grünheide: Elon Musk, head of Tesla, stands on the construction site of the Tesla Gigafactory.
- Musk says new color-coded verification system at Twitter will roll out in a week
- A scene from Marvel Studios' Black Panther: Wakanda Forever. Photo courtesy of Marvel Studios. © 2022 MARVEL.
- Why Thanksgiving-weekend movies aren’t doing well this year
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- Newsfront
- Putin Ally Sends Mafia ‘Sledgehammer’ to EU After Terror Designation
- An ally of Russian President Vladimir Putin sent a sledgehammer covered in fake blood to a European Parliament representative after the oligarch’s private military company was designated a terrorist organization, according to a social media post… [Full Story]
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- Poland Seeking German Support to Sanction Russian Druzhba Oil Pipeline
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- Putin Ally: Russia Will Send Ukraine ‘Back to 18th Century’
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- Trump: Ye And I Had ‘Quick And Uneventful’ Dinner
- Former President Donald Trump says he had a “quick and uneventful” [Full Story]
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- President Joe Biden says his administration has supported over 55,000 [Full Story]
- Kudlow Points to 4 Recession Warning Signs
- Larry Kudlow, former National Economic Council director under the [Full Story]
- The Biggest Losers: 5 Who Should Not Run Again
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- GOP Strategists Outline DeSantis’ Hurdles for ’24
- Florida Gov. Ron DeSantis has emerged as one of the frontrunners for [Full Story]
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- MyPillow founder Mike Lindell reportedly is considering [Full Story]
- Black Friday Deals Are Here, but Not Shoppers
- With the Thanksgiving turkey digested, shoppers were expected to turn [Full Story]
- Related
- Thanksgiving Online Sales Vault to Record $5.3 Billion
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- Amazon Workers Demonstrate in Black Friday Protest
- Discounted Toys Stuff Shelves
- Walmart Shooter Bought Gun Hours Before Massacre
- The shooter who gunned down six people at a Chesapeake, Virginia, [Full Story]
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- Stocks wobbled to a mixed close on Wall Street Friday, but every [Full Story]
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- Georgia Republican U.S. Senate candidate Herschel Walker already has [Full Story]
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- Ye: Trump Told Me at Mar-a-Lago ‘I Was Going to Lose’
- Musical artist Ye, formerly known as Kanye West, said this week that [Full Story]
- EU to Resume Talks on Russian Oil Price Cap
- European Union government representatives will resume talks on the [Full Story]
- Omicron Still Driving COVID Surges, Worries
- A year after omicron began its assault on humanity, the ever-morphing [Full Story]
- Texas Sends 2 More Buses of Migrants to Philadelphia
- A third bus of immigrants arrived in Philadelphia from Texas early [Full Story]
- McCarthy Hits Bumps on Road to Speakership
- A smaller than expected GOP House majority and a growing chorus of [Full Story]
- Putin Ally: Russia Will Send Ukraine ‘Back to 18th Century’
- Russian President Vladimir Putin will “send Ukraine back to the 18th [Full Story]
- Liberal Writer Grateful on Thanksgiving for Abortions
- A writer for the liberal magazine The Nation made a less than common [Full Story]
- Jeffrey Epstein Accusers Sue Banks, Claim They Assisted Sex Trafficking
- Deutsche Bank AG and JP Morgan Chase & Co. have reportedly been sued [Full Story]
- Ford Recalls More Than 518K SUVs in US Over Fire Risks
- Ford Motor Co. is recalling more than 518,000 SUVs in the United [Full Story]
- Youngkin Faces Pressure on Guns After Mass Shootings in Virginia
- Virginia Gov. Glenn Youngkin is facing calls to address gun violence [Full Story]
- Pelosi’s Heir Apparent Jeffries Supports Bill to Study Reparations
- Hakeem Jeffries, D-N.Y., the presumed front-runner to succeed [Full Story]
- Adidas Launches Probe into Misconduct Allegations against Kanye West
- Adidas AG on Thursday said it has launched an investigation into [Full Story]
- Marines to Allow Women to Wear Ponytails
- The Marine Corps this week announced that female Marines are now [Full Story]
- Next Act for Palin Unclear After Alaska House Losses
- Republican Sarah Palin re-emerged in Alaska politics over a decade [Full Story]
- Polling Average Shows Walker With Slight Lead Over Warnock
- Herschel Walker is holding a slight overall lead in Georgia’s runoff [Full Story]
- Finance
- Black Friday Deals Are Here, but Not Shoppers
- With the Thanksgiving turkey digested, shoppers were expected to turn out in record numbers to shop for Black Friday deals…. [Full Story]
- Many Shoppers Can’t Find iPhone 14s on Black Friday
- Thanksgiving Online Sales Vault to Record $5.3 Billion
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- More Finance
- Health
- How to Reap the Benefits of Gratitude
- November is National Gratitude Month and many studies have shown that practicing gratitude ─ being grateful for what you have ─ has a positive impact on psychological, physical, and personal well-being. Grateful people tend to sleep better, have lower stress levels, exercise… [Full Story]
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- Reports: Biden Admin Lobbies for ‘Monkeypox’ Name Change to ‘MPOX’
- Safely Store and Reheat Your Holiday Leftovers
- Vaping Increases Risk for Cavities
===================================
- NOTE 1: The 3rd chart above includes the Canadian stock, ECN, which purchased Triad Financial Services, a manufactured home industry lender
- NOTE 2: Drew changed its name and trading symbol at the end of 2016 to Lippert (LCII).
- NOTE 3: 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.
- Note 4: some recent or related reports to the equities named above follow.
2022 …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.
Disclosure. MHProNews holds no positions in the stocks in this report.
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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.