Working paper
Manufactured Housing and Market Foreclosure
Stanford Digital Repository
12/16/2024
DOI: 10.25740/kb556hv1775
Abstract
Manufactured housing is the largest source of unsubsidized affordable housing in the US, but the production of manufactured homes has fallen from more than fifty percent of single‐family housing starts in the mid‐70s to under ten percent today. Using publicly claimed security interests and the movement reported on oversize trip permits, I follow each home in Texas from factory to dealership to buyer, as it transforms from finished goods to wholesale collateral to consumer collateral, to show that this restriction in supply is consistent with market fore‐closure. Upstream manufacturers extend “floor plan” financing to downstream retailers buying homes for their lots, and restrict output in the downstream market. Floor plan financing acts as the vertical restraint a manufacturer needs, during two decades of a growing housing shortage, to distort competition closer to the inefficient monopoly outcome.
Details
- Title: Subtitle
- Manufactured Housing and Market Foreclosure
- Creators
- Maris Jensen
- Resource Type
- Working paper
- DOI
- 10.25740/kb556hv1775
- Publisher
- Stanford Digital Repository
- Number of pages
- 52 pages
- Language
- English
- Date posted
- 12/16/2024
- Academic Unit
- Finance
- Record Identifier
- 9984802509902771
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