Real Estate
Manufactured Home Production Up But Still Lags Proven Potential
During Affordable Housing Crisis an Evidence-Based Argument That Manufactured Housing Institute is Failing Industry, Employees, Investors
Modern manufactured homes can be appealing as well as affordable, as the collage shown above reflects. First, according to the Manufactured Housing Association for Regulatory Reform (MHARR) is the latest production and top shipment states data in Part I of this article. Part II will provide a follow up on concerns related to the Manufactured Housing Institute (MHI) and their so-called “insider” brands that dominate their board of directors and seem to be keeping manufactured home production at historic lows for their own motivations.
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Washington, D.C., October 3, 2024 – The Manufactured Housing Association for Regulatory Reform (MHARR) reports that according to official statistics compiled on behalf of the U.S. Department of Housing and Urban Development (HUD), HUD Code manufactured housing industry year-over-year production increased again in August 2024. Just-released statistics indicate that HUD Code manufacturers produced 9,501 new homes in August 2024, a 9.5% increase over the 8,670 new HUD Code homes produced in August 2023. Cumulative production for 2024 now totals 68,562 homes, a 16.8% increase over the 58,692 HUD Code homes produced over the same period in 2023.
A further analysis of the official industry statistics shows that the top ten shipment states from January 2023 — with monthly, cumulative, current reporting year (2024) and prior year (2023) shipments per category as indicated — are:
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The August 2024 statistics result in no changes to the cumulative top-ten list.
The Manufactured Housing Association for Regulatory Reform is a Washington, D.C.- based national trade association representing the views and interests of independent producers of federally-regulated manufactured housing. ##
Part II
What follows is a shorter adaptation of the article linked below.
Embarrassing! Corruption-Collusion-Cronyism Charged as New HUD Code Manufactured Home Industry Production Increases in August 2024-Manufactured Housing Facts-Critical Analysis; plus MHMarkets
1) It is 10.4.2024 at about 12.25 PM ET. What does the Manufactured Housing Institute (MHI) homepage news section say about new manufactured home production for August (or July, or any month) in 2024? Nothing. Note that most of what they show is about self-promotion or promotion of their favored people-brands.
2) There are two national manufactured housing trade associations. The larger, better funded, has more staff, and so-called “umbrella” style trade group representing “all segments” of the industry is the Manufactured Housing Institute (MHI). The Manufactured Housing Association for Regulatory Reform (MHARR) represents independent producers, i.e.: the builders or factories, making HUD Code manufactured homes. While a fraction of the size, budget, and resources available at MHI, MHARR has been consistently shining a light on what they say are the factors dramatically limiting the manufactured home industry.
https://manufacturedhousingass...
3) While MHARR is smaller and has fewer financial and other resources, they continue to press for the full and proper implementation of existing federal laws that both MHI and MHARR agree are limiting the industry.
MHARR has met with top federal officials yet again to get existing laws enforced.
https://manufacturedhousingass...
https://manufacturedhousingassociationregulatoryreform.org/mharr-presses-case-for-dts-chattel-in-latest-comments-and-in-person-meeting-with-fhfa-director/
Additionally, MHARR has specifically called out MHI CEO Lesli Gooch’s problematic phrasing and behavior on the issues that there is broad agreement are limiting manufactured housing. Other MHARR items that have critiqued MHI’s so-called leadership are found in reports at links here and here on MHARR’s website.
https://www.manufacturedhomelivingnews.com/inexcusable-and-major-problem-exclusive-mhlivingnews-question-and-answer-qa-with-mark-weiss-j-d-president-and-ceo-of-manufactured-housing-association-for-regulatory-reform-mharr/
https://www.manufacturedhomepronews.com/ghorbani-nails-zoning-answers-to-how-and-who/
4) Skyline Champion (SKY) is one of the largest corporate producers of manufactured housing. From a screen capture of a SKY’s Investor Relations page presentation is the following.
https://www.manufacturedhomepronews.com/cnn-poll-most-renters-cant-afford-to-buy-house-yet-skyline-champion-insiders-are-only-selling-sky-shares-2nd-largest-manufactured-home-producer-in-2024-whats-up-frank-rolfe-remark/
https://www.manufacturedhomeli...
and
https://www.manufacturedhomeli...
5) Note that Skyline Champion has a board seat with MHI’s main board of directors. That graphic by Skyline Champion (SKY) showed that in 2018, the industry’s long-term average for new “MH” (pre-HUD Code mobile home and post-HUD Code manufactured home shipments) was 222,000 annually. That average continues to drop, per SKY’s own more recent IR pitch deck (which used 2023 vs. 2018 data, as in the illustration above), the long-term production/shipment levels have dropped to 200,000 annually. So, in 5 years, the industry’s production/shipment levels have fallen by an average of 222,000 per year; all during a well-publicized U.S. affordable housing crisis. Good job, MHI! (Yes, that’s snark.)
6) MHI has been credibly accused of years of favoritism (cronyism) to its insiders. MHI has also been credibly accused of corruption and collusion that limits manufactured housing in a manner that contributes to consolidation of the industry by self-dealing and allied insiders. When asked once more to publicly respond to these evidence-based allegations MHI has been silent.
https://patch.com/florida/lakeland/manufactured-housing-institute-next-great-affordable-housing-debate and https://www.manufacturedhomepronews.com/patch-manufactured-housing-institute-next-great-affordable-housing-debate-frank-rolfe-samuel-strommen-danny-ghorbani-others-said-mhi-is-problem-not-solution/
7) For those who know where to look, the truth is hiding in plain sight. Some of MHI’s own members, often higher profile members like Equity LifeStyle Properties (ELS), have said in their investor relations presentations that a “supply constrained” asset class is a “strategic advantage” to them.
https://www.manufacturedhomepronews.com/frank-rolfe-denounces-special-interests-dont-tell-me-we-cant-solve-affordable-housing-truth-is-we-dont-want-to-solve-affordable-housing-c/
https://www.manufacturedhomepronews.com/umh-properties-fq4-2023-earnings-call-transcript-sam-landy-expansions-greenfield-development-significantly-outperform-stabilized-properties-eugene-landy-build-100000-communities-plus-mhm/
8) MHProNews has been using left-leaning Bing’s artificial intelligence (AI) powered Copilot to further expose this pattern of apparent industry corruption.
9) There is much more at the article link here, which was the source of the information adapted above. It is simply not plausible that MHI is this inept on getting existing federal laws properly implemented. MHI's own CEO has previously said, for example, that the U.S. Department of Housing and Urban Development (HUD) has failed to implement the Manufactured Housing Improvement Act of 2000 (a.k.a.: MHIA, 2000 Reform Act, 2000 Reform Law) provision known as "enhanced preemption." Congress has held hearings on the failure of HUD to enforce the MHIA's federal preemption provision, see reports linked here and here that include transcripts of those Congressional hearings. The quotes that follow are often from MHI or MHI linked professionals, some are from MHARR. One is from a former federal official, the late William "Bill" Matchneer that I interviewed in the video posted below. One pull quote shown are from Democratic lawmakers. All of these routinely point to the fact that HUD is failing to enforce its enhanced preemption provision. Yet Congress keeps authorizing HUD's budget. MHI keeps avoiding litigating this matter to get it enforced, which MHARR offered to help do years ago. The lack of enforcement is harming investors. It is harming taxpayers. It is harming affordable housing seekers. It is worse than tragic because it is avoidable.
Our manufactured home industry leading trade publications have long been critics of predatory business practices, in or beyond manufactured housing. We have criticized Frank Rolfe's business practices for reasons shown at links here and here. That said, Rolfe has a point when he said that MHI, federal officials, and others don't want to solve the affordable housing crisis.
MHI has apparently not publicly responded to the invitation to debate these issues and their performance, or their lack of performance, as the case may be. To learn more, see the affordable housing related reports linked below. ##
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L. A. “Tony” Kovach and his family live in a manufactured home on private property in Winter Haven, FL. He is the co-founder of ManufacturedHomeLivingNews.com and
ManufacturedHomeProNews.com, trade publications serving segments of the manufactured home industry. Having worked in several segments of the manufactured home industry for over 3 decades, Kovach is a widely acknowledged and often praised expert on manufactured housing.
