“Investors: D.R. Horton, Inc., America’s Builder, has been the largest homebuilder by volume in the United States for thirteen consecutive years,” says the publicly-traded company’s website.
Photo of a D.R. Horton Home model in MD.
Their website provided the following data, linked here. The screen capture below is just part of that fact sheet.
Click here or the image above to download the full size fact sheet.
Horton sells more than half the total number of housing units annually sold by the entire manufactured housing industry, and obviously at a far higher average price-point.
A report in Oct 2017, said their sales total in 2016 was $12.3 billion in revenues.
That’s more than double the retail sales total for all of the HUD Code manufactured homes sold in 2017 by the manufactured housing (MH) industry. The latest MH data can be reviewed later, at the link below.
The Institute for Building Technology and Safety (IBTS) compiles data for the U.S. Department of Housing and Urban Development (HUD) on manufactured home shipments. For May of 2018, the new HUD Code manufactured home shipments by state, is as shown below, per IBTS. Notice those shipments to Hawaii? There were almost as many … Continue reading
Why does any of this matter to MHVille?
Fair question, let’s look.
The Site Built Housing Industry Reality Check #1
ABC News did the following exposé of the host of problems found in the conventional housing industry.
This isn’t new, there are numerous other similar reports. Check out this short one by a local news report.
These are similar to the kinds of problems that caused the old pre-HUD Code mobile home industry’s leaders to turn to the federal government and ask for federal standards. Problematic pre-HUD Code mobile home builders in the early 1970s caused the builders of better homes NOT to want to be branded by those with a poor image.
The ‘quality crisis’ of the late 1960s and early 1970s led to exposés by CBS’ 60 Minutes and others. That threatened the credibility of the then-booming mobile home business. Are site builders heading toward a similar crisis? And will manufactured home producers, marketers and sellers be able to tap into those concerns?
What was accomplished previously in sustainable shipment levels, can clearly be done again.
D.R. Horton is far from alone in facing such concerns among conventional, on-site builders. There have been numerous websites over the years – example, http://www.kbhomesleak.com/kb-home-sucks-1-gone/ – that spotlight these kinds of problems with other stick builders.
The point here isn’t to trash D. R. Horton, nor any other, conventional housing builders.
Rather, it is to make a few points similar to what the National Association of Home Builder (NAHB) official interviewed in the ABC News video above made.
Namely, that housing isn’t perfect.
No product is, and that includes manufactured homes.
So why is it that conventional housing is roaring, and manufactured home shipments are snoring?
The only JCHS graphic that specifically mentions manufactured housing. To see our exclusive review of the Harvard’s “State of the Nation’s Housing in 2018, click here or the graphic above.
Part of the beauty of manufactured homes is that there are third-party inspections. Those avoid many of the kinds of problems being identified by site builders, noted in the videos above.
HUD Code manufactured housing consumers can take comfort in that inspection process. Furthermore, the dispute resolution process that is part of the Manufactured Housing Improvement Act of 2000 (MHIA) gives consumers a level of confidence that is frankly not found in the conventional housing world. The MHIA of 2000 is found in the article linked below, along with other information that can be read later for greater depth of understanding on a related topic.
Unlike many conventional builders, manufactured home producers are all third-party inspected. And the review process – per HUD data reveals – so few consumer complaints that it should make all manufactured home sellers proud.
The article from MHLivingNews last year spotlighted the relatively few numbers of dispute resolution complaints on HUD Code homes.