Producer Price Index for Manufactured Homes

Prices received by producers of manufactured housing moved up 0.7% in May over the previous month, and the year-over-year change continued to moved down coming in at 21.5%. The PPI hit it’s year-over-year peak in February of 31.5%.

The increase in the price index was consistent with the Texas Manufactured Housing Survey (TMHS) results for May which showed prices received going up on net for participating manufacturers. There was an inversion in sentiment with survey respondents no longer expecting higher prices over 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 $162,100 (+/- $9,000) for multi-sections and $89,300 (+/- $5,600) 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.