Producer Price Index for Manufactured Homes
The producer price index for manufactured housing moved up +0.2% in February over the previous month coming in at the highest mark since June of 2023. The past two months were both revised down with this release.
Wholesale prices nationally are up +1.8% above February of 2024. The input goods to residential construction moved up 0.6% in February after moving up +1.4% in January, so materials cost incraeses are putting upward pressure on manufactured home prices.
This interactive chart is built from the U.S. Bureau of Labor Statistics Producer Price Index by Industry: Manufactured home, mobile home, manufacturing, not seasonally adjusted (PCU321991321991)
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.
TMHS: Prices Received for Finished Homes
The regional Texas Manufactured Housing Survey (TMHS) results had prices received for finished homes moving higher for a few manufacturers, but increases to come were expected by almost 90% of the weighted sample.
Average Retail Selling Price Forecasts
A regression model on the price index puts the forecasted average sales price for new homes in the south census region at approximately $153,800 (+/- $8,600) for multi-sections and $84,100 (+/- $6,300) for single-section homes*.
*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.