Institute for Building Technology and Safety (IBTS) in national research on behalf of the U.S. Department of Housing and Urban Development (HUD), reported the following to the Manufactured Housing Association for Regulatory Reform (MHARR). The MHARR media release, shown below, will be followed by some additional information, MHProNews analysis and commentary in brief.
FOR IMMEDIATE RELEASE Contact: MHARR
(202) 783-4087
HUD CODE PRODUCTION INCREASES CONTINUE IN MAY 2021
Washington, D.C., July 6, 2021 – 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), HUD Code manufactured housing industry year-over-year production increased in May 2021. Just-released statistics indicate that HUD Code manufacturers produced 8,606 homes in May 2021, a 29.4% increase over the 6,647 new HUD Code homes produced during May 2020. Cumulative production for 2021 now totals 44,329 homes, a 14.9% increase over the 38,597 homes produced during the same period in 2020.
While, based on these statistics, it appears that the industry, in the post-COVID-19 environment of 2021, could be on track to surpass the 100,000 homes-per-year benchmark for the first time since 2006, one can only wonder how much larger the affordable, mainstream HUD Code market could (and would) be, if the industry could effectively confront and resolve its two most significant external impediments – discriminatory and exclusionary zoning mandates and the ongoing lack of secondary market support for manufactured home consumer lending by Fannie Mae and Freddie Mac
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 May 2021 — with cumulative, monthly, current year (2021) and prior year (2020) shipments per category as indicated — are:
The May 2021 production data results in no changes to the cumulative top-ten 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.
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California shipment data, highlighted above, is the only state that is per the above not up year over year 2021 vs. 2020. That is one of the four categories where manufactured housing has not progressed so far in 2021. The other category that May production failed to advance is that April 2021 production nationally outpaced May 2021. That noted, total year over year production has advanced in 2021 vs. 2020.
As the more detail look below will reflect, the year over year advance that began in the spring of 2021 breaks a vexing cycle that has dogged the industry.
The California data is particularly vexing for reasons outlined in the graphic and report linked below.
Additional Information, More MHProNews Analysis, and Commentary in Brief
Until March of 2021, manufactured housing experienced a sustained year over year production decline that lasted for some 2½ years. While that decline finally began to reverse with the March 2021 national production report, it is important to bear in mind the facts related to that decline. See the report linked below.
Facts matter.
Evidence matters.
Conventional housing is roaring. The national housing data clearly reflects that the greatest need is in the affordable housing segment. While manufactured homes are finally up, that rise is only after a 2½ year decline. That decline was finally reversed last March.
That roller coaster follows the prior slow climb up from the 2009-2010 bottom experienced by manufactured housing. It included the stunning contrast in statements by prior MHI president and CEO, Richard “Dick” Jennison. In 2014, Jennison told industry pros that the industry should grow slowly.
Then, following communications between MHProNews and MHI’s prior Chairman, Tim Williams, about how problematic that statement by Jennison in the video above was, Jennison pulled a 180 degree switch. At another event, Jennison said that the industry could achieve 500,000 new HUD Code manufactured homes. That statement was made at the same event from the Jennison video clip shown below.
Against that and other flip-flops and apparent contradictions, the 2.5 year dip oddly began at about the same time that the Manufactured Housing Institute (MHI) claimed “momentum” in one of their self-promotional videos.
That so-called “momentum” (in reverse) claimed by MHI began at about the time that the Berkshire Hathaway (BRK) and other larger industry brands dominated trade group began to seriously push the odd “new class of manufactured homes” plan later renamed “CrossModTM homes.”
Per MHI – with public support by Berkshire’s Clayton Homes, Skyline Champion, Cavco Industries, and others – their minimum 6 figure plan was supposed to usher in a new era of manufactured housing acceptance. Unlike so many others in manufactured housing trade media, bloggers, MHI affiliated state associations, etc. MHProNews led the charge opposing the “new class” of “CrossModTM homes” scheme. That opposition was sparked by the following factors.
- Input from several MHI member producers that had concerns about the plan.
- Opposition from the Manufactured Housing Association for Regulatory Reform (MHARR), for some similar reasons that MHProNews and others raised.
- Insights from sources inside the finance community – including, but not limited to – those that were involved in the design and implementation of what became Fannie Mae’s MH Advantage® and Freddie Mac’s CHOICEhome® programs that supposedly were their legally required contribution to the Duty to Serve (DTS) manufactured housing. As MHProNews reported, a Fannie Mae manager stated that Clayton’s affiliated lenders failed to provide data to support personal property lending for DTS lending on all other manufactured homes. Meanwhile, other MHI member lenders reportedly gave the data, per Fannie and members who confirmed the facts directly with MHProNews.
- No less important was our own decades of successful experiences in selling and marketing manufactured homes. It should have been obvious, to anyone that understands manufactured home marketing and sales, that Clayton, MHI, and several of their larger brands supported-program was a nonstarter. The history of Clayton Homes alone on these types of more expensive products should have been reason enough to never invest a dime beyond initial discussions. How so? Because it is obvious that if you want to elevate your brand or product, you do not do it by effectively undermining the vast majority of the homes that you have been producing for the last now 45 years.
- Speaking of 45 years, the 45th anniversary of the launch of the HUD Code for manufactured homes was missed by MHI.
- Despite agreement with Williams at 21st that manufactured housing has a great story to tell, and that MHProNews/MHLivingNews were doing a good job of promoting those benefits, MHI itself failed to tap into others in housing that wanted to connect with June as National Homeownership Month.
- Clayton’s belated promo illustrated just how apparently misguided the dominating brands are in pushing for CrossModTM after years of demonstrable market flops, as measured by actual CrossModTM data, per the Government Sponsored Enterprises (GSEs).
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- Inexplicably, MHI on 7.6.2021 still has their plug for a demonstrably failed project emblazoned across their homepage. That is so after the Modular Home Builders Association (MHBA) publicly called on MHI to stop deceiving the public, and ripped the trade group for not supporting the millions of HUD Code manufactured homes that are already in the marketplace.
So, early on, MHProNews made report after report that revealed why this would not work, all of which has turned out to have now come to pass.
As a disclosure, which is stating the obvious, MHARR is an advertiser. That said, MHI has been an advertiser, as too was Clayton Homes, 21st Mortgage and several other MHI brands. Our concerns on issues about the direction that MHI and their dominating brands began while we were an MHI member and while we were being financially supported by MHI and several loyal MHI member brands. Rephrased, ads have demonstrably not driven our reporting and analysis.
It must also be noted that MHI, long before they got their undies in a knot about our reports, asked MHProNews in writing to stop publishing their reports to their members, which included MHProNews for several years. MHI asked for that halt, which at the time was odd. It was documented at the time at this link here. That was posted March 2, 2015.
It should also be noted that this writer was elected by peers at MHI to serve on the MHI Suppliers Division board of directors. MHI, after MHProNews raised concerns about their performance, first moved to remove – arguably unjustly – this writer from that board. Later, following more public MHProNews questions about MHI performance on behalf of the industry’s independents, MHI’s responses included, documented public ducks, dodges, and arguably back door as well as public efforts to undermine MHProNews, which they had previously praised and even supported.
In hindsight, several items about MHI have come into focus. Among them, in no specific order of importance, are the following.
- A) This writer, as an MHI member, promoted several pro-industry growth concepts, which MHI claimed to support.
- B) Among those items promoted by our platforms was proper engagement with the mainstream media. MHI provided a platform for this writer and industry colleagues to address other MHI members on that subject. See the photo below. That same seminar was popular, and some state association had us do that seminar for their members.
Bowersox and other MMHF members made video and written statements praising MHProNews. The points are several. But for now, the takeaway with respect to MHI is this. They clearly had millions of dollars available to properly promote manufactured housing. Additionally, Clayton Homes, Skyline Champion, Cavco Industries, and others have the resources to properly promote manufactured homes. But instead, they make token efforts that for 2.5 years led to a downward trend in sales. When the facts and evidence are examined dispassionately, the failures of MHI point to sobering conclusions. Among them? That MHI is apparently more focused on consolidation for their major brands than they are industry growth. See the linked report below for evidence.
- C) MHProNews promoted the idea of improving public acceptance and understanding of manufactured home beyond mainstream media engagement, in part with what was effectively a product placement and other efforts that aimed at debunking commonly misunderstood notions about modern manufactured homes. There are numerous examples of this, including the launch of MHLivingNews in 2012, which former MHI chairman, who is still an MHI board member, Tim Williams, President and CEO of 21st Mortgage Corporation and others publicly praised.
- D) When the facts are examined, one comes to the stunning conclusion that MHI, in concert with several major-member brands, has the resources to grow the industry in a robust fashion. The laws needed to move the industry ahead in a robust fashion exist. But robust growth would foil consolidation efforts. MHI has thus demonstrably defaulted to posturing efforts that have in fact resulted in consolidation vs. robust growth.
- E) There is evidence beyond what is shown, see linked reports for examples, that pre-Berkshire, MHI was a more P.E.P. focused trade association (Protect, Educate, Promote = P.E.P.). However, in the post-Berkshire era, the evidence suggests that MHI is either incompetent – which is difficult to swallow or believe. Or, MHI is working to advance consolidation, while they posture efforts that routinely prove to be mere window dressing that achieves nothing of practical value. For instance, there are examples of media and other engagement that the late Bruce Savage engaged in that finds no similar efforts since MHI revived the media relations role.
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The facts don’t lie, but people – including a number of manufactured home industry professionals – apparently do. People who have an agenda try to spin, divert, deflect and try a range of “deception and misdirection” tactics. The industry’s 3 month move up is clearly due to an overheated housing market. Will it be sustained? Or will the powers that be at MHI find some new “moat” ploy to hobble industry production and performance? Stay tuned.
To learn more, see linked and related reports.
Bombshell! Buffett, Berkshire, Clayton Homes, 21st, Vanderbilt, Specific MHI Members Ripped – “Felony” “Monopolization of the American Manufactured Home Industry” “REITs” – Knudson Law’s Sam Strommen Research
Warren Buffett, Berkshire Hathaway, Clayton Homes, 21st Mortgage, Vanderbilt Mortgage Finance, VMF, Skyline Champion, Cavco Industries, Manufactured Housing Institute, MHI, Members, Ripped, “Felony”, Monopolization of the American Manufactured Home Industry and the Formation of REITs: a Rube Goldberg Machine of Human Suffering, Knudson Law, Sam Strommen, Research Paper, Antitrust & Consumer Protection, MHARR, L A Tony Kovach, RICO, Noerr-Pennington, MHProNews, MHLivingNews, Tying,
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UPDATE and Notice to MHI members. Follow up emails to several MHI linked attorneys – not one disputed the claim by the law firm cited in the report below.
The evidence routinely points one way. No wonder why MHI, their major brands, and even their outside attorneys all went silent when it comes to engaging with MHProNews on these troubling trends and growing evidence.
Stay tuned for more of what is ‘behind the curtains’ as well as what is obvious and in your face reports. It is all here, at the runaway largest and most-read source for authentic manufactured home “News through the lens of manufactured homes and factory-built housing” © where “We Provide, You Decide.” © ## (Affordable housing, manufactured homes, 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.com.
Tony earned a journalism scholarship and earned numerous awards in history and 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.
Connect on LinkedIn: http://www.linkedin.com/in/latonykovach
Related References:
The text/image boxes below are linked to other reports, which can be accessed by clicking on them.
