Global Affordable Housing Shortage Builds Interest in Prefabricated Housing

Global demand for prefabricated housing is forecast to rise 1% annually through 2024 to 3.9 million units, boosted partly by the shortage of affordable housing throughout the world supporting demand for inexpensive prefabricated units, reports The Freedonia Group in the market research report Global Prefabricated Housing.

Currently, housing shortages exist in many emerging markets throughout Central and South America, the Asia/Pacific, and the Africa/Mideast. Interest in prefabricated housing has been rising in countries like Brazil and India, as it offers a faster, more affordable solution for expanding and upgrading the housing stock than most traditional housing.

Additionally, the large Chinese market for these products is undergoing a shift. Demand for temporary housing, which has long dominated the prefabricated housing market, is declining as building construction slows. However, the government is looking to improve housing quality and affordability, leading demand for other prefabricated units to expand quickly because they offer quick, affordable solutions for both single-family and, increasingly, multifamily homes.

The United States, the fifth largest market for prefabricated housing in the world in 2019 due to the large size of its housing market overall, also provides many opportunities for prefabricated construction. In the U.S., a relatively large market for prefabricated housing exists due in part to many people being priced out of the traditional single-family housing market, presenting a significant opportunity for manufacturers to provide more affordable housing solutions. The Freedonia Group forecasts U.S. demand for prefabricated housing will expand 2% per year through 2024. The best growth prospects are expected in panelized and precut homes.

About the Report

Now available for purchase from The Freedonia Group is Global Prefabricated Housing.

This comprehensive study examines the world prefabricated housing industry by type and region. Historical data are provided for 2009, 2014, and 2019, with forecasts for the years 2024 and 2029. Data for prefabricated housing supply and demand are presented in units and are broken out by product type (manufactured and modular housing, temporary housing, and panelized and precut) for six geographic regions and 20 major national markets. Demand is also presented in dollars, while shipments data are given in units.