Producer Price Index for Manufactured Homes
The producer price data for manufactured housing moved lower -0.3% in August and the previous four months were revised down slightly. The Bureau of Labor Statistics subjects the preceding four months of PPI data to potential revision.
Despite the month-over-month reduction in wholesale prices the August value was up +0.3% above August of 2023 and marked the first year-over-year increase since January of 2023.
The regional Texas Manufactured Housing Survey (TMHS) results had prices received for finished homes moving lower for roughly 50% of the weighted sample in August, and prices are now expected to decline over the next six months for roughly 25% of the market.
A regression model on the price index puts the forecasted average sales price for new homes in the south census region at approximately $153,000 (+/- $8,600) for multi-sections and $83,400 (+/- $6,000) 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.