The manufactured housing industry in Texas is currently indicating early signs of deflation and manufacturers predict further relief through the end of the year, according to a report by the Texas A&M University (TAMU) Real Estate Research Center.

The TAMU report states that disruptions in supply chains led to inflationary pressures last year, according to data provided by a recent Texas Manufactured Housing survey; however, improvements seem to be under way, as the supply chain disruption index has fallen to its lowest level since the survey started in June 2020.

Additionally, manufacturers have been reportedly streamlining processes in order to produce products more efficiently during the past several months.

"In the case of lumber, which is a major input in manufactured housing, waning consumer purchases at the retail level have reduced demand pressure after surging during the pandemic," stated Dr. Harold Hunt, a research economist with the Texas Real Estate Research Center at Texas A&M University. "The price of lumber is currently less than a third of what it was in May."

According to the TAMU report, the COVID-19 pandemic disrupted supply chains across many sectors, resulting in price increases.

Additionally, the report notes that the price increases are being exacerbated by an ongoing labor shortage.

Consumer prices in the United States have increased 5.4% since last July, the biggest increase since August 2008, according to a CNBC report.