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Research - FEBRUARY 8, 2022

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Housing manufacturers expect rising costs

by Released

Manufactured-housing production has surged over the past two years, and, according to the latest Texas Manufactured Housing Survey (TMHS), manufacturers expect even faster growth during the first half of 2022. Industry optimism has prompted a flood of capital expenditures and operational expansions.

“Manufacturers are working hard to make improvements to enhance efficiency in their plants,” said Dr. Harold Hunt, research economist with the Texas Real Estate Research Center at Texas A&M University. “Creativity is the key, and each manufacturer may not attack the problem in the same way. But the end goal is to crank out more units within their capacity constraints.”

The TMHS capital-expenditures index has accelerated in every month since the survey began in June 2020, supporting the industry’s efforts to expand operations.

“Manufactured housing is centered on driving as much efficiency into the home-building process as possible,” said Rob Ripperd

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