The National Association of Home Builders (NAHB) Chief Economist David Crowe sees good signs in housing overall. Crowe said: “The increase in single-family starts shows that the housing market continues to recover at a steady, gradual pace.”
According to a report by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, single-family housing production in October reached its highest level since November 2013. The more volatile multifamily sector brought combined nationwide starts activity down 2.8 percent to a Seasonally Adjusted Annual Rate (SAAR) of 1.009 million units.
The National Association of Home Builders (NAHB) informs MHProNews that the 2.8 percent decline in overall starts in October was due primarily to a 15.4 percent decline on the multifamily side, which brought that sector’s pace to a SAAR of 313,000 units. Meanwhile, single-family starts posted a 4.6 percent gain to 696,000 units.
By contrast, The National Modular Housing Council (NMHC) reported that on information available, 2014 production is projected to be about 14,000 homes; which they say is essentially unchanged from 2013. The report explains that, “In order to achieve this 2014 projection, an increased number of modular manufacturers will need to adjust their basic business model to include more multi-family housing.”
In an update to a post Daily Business News published on November 13th, 2014, the Seasonally Adjusted Annual Rate (SAAR) for existing housing (resales) through September was at 5.17 million for 2014.
NMHC shipment report indicates a tiny growth of modular homes shipped 3,846 in the third quarter of 2014, up 0.2 percent in the same quarter in 2013. There were increases reported in 15 states, with reductions in 19 states. As the chart above shows, modular homes were 1.4% of conventional housing for the same states and period.
Compared to manufactured home sales, modular home sales are also lagging.
It seems that both industries need to consider a page from MH veteran Randy Rowe’s suggestions for industry recovery, and Murex Properties CEO Steve Alder’s call for an industry marketing/PR campaign. ##
(Image Credits NMHC, Hallahan & Associates and U.S. Census Bureau.)
