Cavco, Champion eye long-term growth from chassis removal

Since the 21st Century ROAD to Housing Act became law on July 11, the conversation about removing the permanent chassis requirement for manufactured homes has shifted. Before it was all about advocacy. Now, it’s all about the realities of implementation and execution risk. On earnings calls since the bill’s passage, executives at Cavco Industries and Champion Homes, two of the largest publicly traded manufactured housing builders in the United States, discussed the potential impact they believe the change could have on the industry and the affordable housing supply. While ​much of the reporting on the chassis removal has focused on potential cost savings, Cavco Industries’ and Champion Homes’ business leaders view greater design flexibility and broader access to urban and infill markets as the bigger opportunity. However, while removing the permanent chassis could unlock a new growth era for manufactured housing, both operators view the change as a long-term opportunity that will likely take 12 months or more to translate into operational and business results, rather than a quick business boon. Broadly, expanding access to manufactured housing could provide a meaningful source of a...