Texas housing manufacturers anticipate increased sales, production over next six months

COLLEGE STATION, Tex. (Texas Real Estate Research Center) – Housing manufacturers in Texas saw an increase in general business activity for the 13th consecutive month, according to the February Texas Manufactured Housing Survey (TMHS). Extending a year-long expansion, the company-outlook index reached a seven-month high, trending upward with respondents unanimously anticipating more sales and production for the next six months.

“HUD code manufactured housing factories started 2024 with production back up near pre-pandemic levels,” said Rob Ripperda, vice president of operations for the Texas Manufactured Housing Association. “Retailers have trimmed down their aged inventory and are stocking up for the spring and summer buying seasons.”​

Manufacturers ramped up hiring activity, extended workweeks, and increased capital expenditures amid robust demand expectations.​

“The largest conference in the state for manufactured home community investors, TexCo, held in February in The Woodlands, highlighted several greenfield projects in the Dallas, Houston, San Antonio, and Corpus Christi metro areas along with existing community expansion projects,” said Ripperda.

TRERC Research Economist Harold Hunt, Ph.D., said loan refinancing rates and how inflation behaves are key points to watch.

“Manufacturers at TexCO noted that sales to manufactured home communities have accelerated in the last five years,” said Hunt. “However, one concern is high financing costs. Community owners were advised to contact their lenders well in advance for any loan refinancing. Depending on how inflation evolves over the next few months, the Federal Reserve could cut interest rates, which might boost investment further.”

Respondents expect less uncertainty heading into spring and remain generally optimistic despite some upticks in supply-chain disruptions and higher input costs. These costs may translate into higher prices for finished homes, but the trajectory of economic growth appears capable of offsetting these challenges.

ABOUT THE SURVEY
This sentiment survey gauges current conditions and expectations surrounding Texas’ manufactured housing industry. All members of the Texas Manufactured Housing Association (TMHA) with manufacturing facilities in the state are invited to participate, and the survey panel represents 89 percent of HUD-code homes produced in Texas. The survey, created as a joint project conducted for the manufactured housing industry by TMHA and TRERC, is updated monthly.​