Cavco, Champion eye long-term growth from chassis removal

Cavco and Champion's decision to remove chassis from their manufactured homes is a strategic move that could have significant long-term implications for the industry. By doing so, they are positioning themselves for growth and potentially setting a new standard for manufactured housing. This move is likely driven by the desire to reclassify their homes as modular or panelized constructions, which could lead to more favorable zoning and building codes.

The Housing and Urban Development (HUD) rulemaking process is expected to take at least a year, which means that Cavco and Champion are taking a long-term view of their growth strategy. This patience is understandable, given the potential benefits of reclassification, including increased adoption and improved profitability. Industry stakeholders will be watching closely to see how HUD responds to this shift and how it impacts the broader manufactured housing market.

As the industry waits for HUD's ruling, construction companies and investors will be keeping a close eye on Cavco and Champion's progress. The success of their chassis removal strategy could pave the way for other manufacturers to follow suit, potentially leading to a shift in the way manufactured homes are designed, built, and regulated. With the manufactured housing market poised for growth, all eyes will be on how this development plays out and what it means for the future of affordable housing.

Originally reported by housingwire.com. ConstructionNews adds analysis for real estate & property readers.