Prices received by producers of manufactured housing were unchanged in October with the Producer Price Index (PPI) value coming in at the same level as last month’s revised value. The index values for both August and September were revised up slightly. The Bureau of Labor Statistics subjects the preceding four months of PPI data to potential revision.
The year-over-year decline in the index continued to move towards leveling with October’s value coming in -1.8% below October of 2022. July of last year was the peak in MH PPI, so the year-over-year comparison should continue to narrow for the remainder of the year.
Wholesale prices have remained just under where they started the year at as we move into the last two months of the year.
The regional Texas Manufactured Housing Survey (TMHS) results had wholesale prices moving down for most respondents in October, and expectations have prices remaining flat for the next six months.
A regression model on the price index puts the forecasted average sales price for new homes in the south census region at approximately $155,400 (+/- $8,400) for multi-sections and $84,300 (+/- $5,900) for single-section homes*.
This interactive chart is built from the U.S. Bureau of Labor Statistics Producer Price Index by Industry: Manufactured Home, Mobile Home, Manufacturing: Manufactured Homes (Mobile Homes), All Width Sizes (Including Multisection) (PCU3219913219911)
Producer Price Index (PPI) Data
The index tracks the change over time of selling prices received by participating producers, with the index value of 100 representing the prices received in June of 1981.
*The PPI is not a perfect predictor for the Census’ Manufactured Housing Survey average price results, but it does account for over 90% of the variability when used in a regression model as the explanatory variable.