Manufactured home shipments for July fell 20% from June, but with most plants closing the week of Independence Day lowered production is always expected. There were a total of 1,238 homes shipped in July, which marked a 29% increase over July of 2017 with gains in both single-section (+36.5%) and multi-section units (+21.7%).
The macroeconomic picture for the state remains positive for the MH market. The state’s employment gains slowed in July but the Federal Reserve is still projecting slower but sustained growth for the remainder of the year, and the state’s housing inventory though growing remains well below its historical average.
Labor shortages and elevated construction material costs continue to be headwinds for the industry, and as always the continual threat of increased regulatory burdens can pop up anywhere and anytime, as the recent decision by the Odessa City Council to increase front entrance and skirting requirements clearly illustrates. But all MH market data that we currently have continues to look very strong. Late revisions have pushed new titles for May to the highest monthly total since reporting began in 2012, while June and July are both tracking above 2017’s totals.
|Total for July:||643||595||1,238|
|Change from June:||-18.3%||-21.71%||-19.97%|
|Change from July of 2017:||36.52%||21.68%||28.96%|
|Total for 2018 YTD:||5,944||4,680||10,624|
|Change from 2017 (%):||23.96%||14.68%||19.69%|
|Change from 2017 (Units):||1,149||599||1,748|