Texas manufactured housing sales, orders dip as summer growth wanes

​​​COLLEGE STATION – New orders and sales for Texas’ manufactured housing industry declined in October, according to the latest Texas Manufactured Housing Survey (TMHS). The lower volume follows a robust growth stretch during the second and third quarters.

"Retail sales of manufactured homes typically slow down through the winter and then come on strong as spring hits in March," according to Rob Ripperda, vice president of operations for the Texas Manufactured Housing Association (TMHA). "Manufacturers will have holidays to work around for the next month and a half but are expecting to increase their daily production rates in preparation for the spring selling season."

Production levels remained elevated in October as manufacturers scrambled to chip away at a backlog built up over the summer. The oversupply pushed sale prices higher, partially offsetting rising input costs.

"Significant upstream supply disruptions are causing real headaches for the manufacturers," said Real Estate Center Research Economist Dr. Harold Hunt. "A lack of almost everything, from appliances to basic building materials, is currently hampering their operations."

The manufactured housing outlook, however, remains favorable as supply-chain disruptions are expected to subside in coming months, allowing manufacturers to catch up on outstanding orders. The industry is preparing for a wave of new hiring and capital expenditures in early 2021. This optimism outweighed uncertainty associated with COVID-19 and possible regulatory changes in the next Texas Legislature, but these factors continue to be closely monitored across the industry.

The Real Estate Center and TMHA have partnered to produce a monthly survey of business conditions and expectations surrounding the manufactured housing industry.​

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