Producer Price Index for Manufactured Homes
After last month’s increase, prices received by producers of manufactured housing rose modestly in March with the Producer Price Index (PPI) value coming in just +0.02% above last month’s value. The February value was revised lower with this month’s release. The Bureau of Labor Statistics subjects the preceding four months of PPI data to potential revision.
Wholesale prices remain below where they were a year ago, with March’s value down -1.2% below March of 2023.
The regional Texas Manufactured Housing Survey (TMHS) results had prices received for finished homes moving higher in March, and expectations of further increases remain wide.
The PPI for the inputs to residential construction has been up year-over-year since December, and rising prices on materials will put upward pressure on manufactured home pricing.
A regression model on the price index puts the forecasted average sales price for new homes in the south census region at approximately $151,800 (+/- $8,400) for multi-sections and $82,600 (+/- $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.