Blog Posting # 740, Copyright 5 May 2023. EducateMHC
Parallel Perspectives. HUD-Code manufactured housing is federally-regulated, performance-based, affordable factory-built housing! And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the investment real estate component of manufactured housing! EducateMHC alone is the online advocate, historian, trend tracker, and text resource for these two business models! To input this blog or connect with EducateMHC, telephone (317) 881-3815; email: gfa7156@aol.com, or visit www.educatemhc.com, to order Community Management in the Manufactured Housing Industry. This is the sole professional community management text in print today! And SWAN SONG is a history of land lease communities, and official record of annual MH production totals since 1955; and my autobiography, from SmittyAlpha6 to MHMaven –describes my combat adventures in Vietnam & 40+ years business career in MH and communities.
George Allen, CPM®Emeritus, MHM®Master, Emeritus member of MHI, RV/MH Hall of Fame enshrinee, retired lieutenant colonel of U.S. Marines, and author/editor of 18 non-fiction texts.
SMALL BIG THINGS…
Many a time Press Releases, and other manufactured housing industry news stories, come across my desk that all but demand attention, but lack enough substance to be worth pursuing, in this blog and elsewhere. However, a recent announcement appeared, on LinkedIn, which begged commentary.
The divisional VP of one of the large land lease community portfolio owners/operators (i.e. hedge fund spawned) described how stellar it was to work at that firm, and how well they were treating their many homeowners/site lessees around the U.S… Well, that’s not the story I’ve been hearing – for a while now; so thought I’d ‘respond’ to his narrative. Guess what? For the first time, in my experience, the LinkedIn site (I’m certain, at the request of said CEO) refused me – or anyone else, opportunity to respond! Seriously. In my opinion, blocking two-way communication is flat out wrong. And for me, it underscores; and yes, lends credibility to the rumors (?) of exorbitant rent increases, adding of new fees, and other tenant abuses by firms such as this one.
OK, Are We in Free Fall Yet?
Once again, a storm warning of potential production disaster, relative to new manufactured homes, comes from the folk at the Manufactured Housing Association for Regulatory Reform:
“…HUD Code manufactured housing industry year-over-year production has declined again in March 2023. Just-released (i.e. from IBTS*) statistics indicate HUD Code manufacturers produced 7,646 homes in March 2023, a 32.2 percent decline from the 11,279 new HUD Code homes produced in March 2022.”
How does this 21,174 YTD 2023 production compare with past years? Well in 2022 the YTD figure was 29,670; in year 2021 = 21,479; in year 2021; in year 2020 = 25,311; in year 2019 = 22,359; in year 2018 = 25,531; in year 2017 = 23,384; in year 2016 = only 19,101. So, this year (2023) we’re producing, YTD, only 2,073 more new manufactured homes than we did seven years ago! Not wanting to be a doomsday naysayer; unless our market turns around quickly and greatly, we’re potentially looking at a 2023 yearend total unit production near 81, 136 new homes (That’s the official 2016 total) – way down from the 112,886 new HUD-Code homes shipped during all of year 2022. Keep in mind, all these YTD totals are based on data provided by the aforementioned IBTS, and no one else.
So, are we entering a free fall, once again, in the manufactured housing industry? Keep watching – and preparing for the worst. After all, and as we pointed out last week, what are the Big 3-C HUD-Code housing manufacturers doing to publicly promote our brands nationwide?
End Note.
- IBTS = Institute for Business Technology & Safety – HUD’s scorekeeper for HUD-Code manufactured housing productions.
Our Blog Postings Get Responses
Responses to last week’s ‘Brilliance or Bull___?’ blog posting:
“Yes, I too wonder about manufacturers’ ambivalence about growth. It is like watching kids dig around in a sand box overlooking the ocean and beaches that stretch for miles, and wondering why they aren’t playing there.”
“Manufactured housing has so much to offer GenZ; yet not a word about it from anyone? Don’t get it.
“One thing is missing in your ‘challenge to the industry’: Support closing or increased regulation of ‘trailer parks’ run by rape-and-pillage operators that local housing market authorities point to when they refuse to allow new communities to be developed.” (Paraphrased GFA)
“I see two core issues holding us back George: Financing tools, and lack of dealerships.”
Quote of the Week…
Another gem from Senator Kennedy from Louisiana:
“I believe America was founded by geniuses but is now run by idiots.”