Wednesday, June 19, 2013

Modular Housing Shipments Up in First Quarter 2013

Last week the National Modular Housing Council reported 2,936 homes shipped in January through March this year in its Quarterly Modular Housing Report. This is an increase of 3.9 percent over the same quarter in 2012. 

According to an analysis by Fred Hallahan of Hallahan Associates, who tracks modular home shipments nationwide, modular activity from January through March 2013 continues a pattern of six consecutive quarterly year-to-year increases in modular activity that have occurred since the third quarter of 2011.

Relative to 2013 first quarter total home building activity, the 3.9 percent increase in total modular activity lags behind strong increases in conventional residential building permit activity as follows:

• Total 2013 first quarter permit activity for conventional residential housing, representing 203,800 homes, increased 22.3 percent over 2012;

• Single family 2013 first quarter permit activity, representing 133,300 homes, increased 25.9 percent over 2012; and

• Multi-family 2013 first quarter permit activity, representing 70,500 homes, increased 16.3 percent over 2012.

The comparison of modular activity with single and multi-family site built housing, indicates that overall modular production will continue to grow but may continue to lose market share within the total home building sector.

With the notable exceptions of New York State (the most active modular state) and North Dakota (the fourth or fifth most active modular state), 2013 multi-family modular activity is typically not a significant contributor to current modular activity for most states and for most manufacturers.

Based on current information available relative to economic conditions in 48 states, the 2013 annual modular consumption is projected to exceed 14,000 homes representing an annual increase of more than 5 percent compared to 2012.

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