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This study analyzes US demand for prefabricated housing by product type and by US region and subregion. Demand is provided in unit terms, value terms, and installed per unit value.
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Prefabricated housing demand is segmented into the following product types:
manufactured housing, including single-section, double-section, and three and more section homes
modular housing (including “tiny homes” or accessory dwelling units, or ADUs)
precut homes (including log houses, domes, A-frame, and post-and-beam, homes)
Excluded from the scope of the study are:
manufactured and modular housing units used as commercial structures and homes made from shipping containers
prefabricated components used in the construction of a site-built home (such as a roof truss or a structural insulated panel, along with the additional work required at the jobsite to complete the residence
Systems where materials used to erect a home are cut at a factory or lumber mill, labeled, and sent to a jobsite, are not considered to be precut housing are also excluded.
Unit pricing per residence and the total installed value (e.g., labor, fees, utility hookups) of a residence are provided for each residence type.
Additionally, demand for prefabricated housing is broken out for major US geographic regions and subregions.
US demand for prefabricated housing is forecast to climb 2.6% per year to 145,300 units in 2024, with value demand reaching $10.8 billion. Gains will be spurred by:
the shortage of affordable housing in the US, which will support demand for expensive site-built housing, such as prefabricated units
heightened interest among consumers – particularly those whose finances were affected by the COVID-19 pandemic – in less expensive residences that are easier to finance
efforts of manufactured housing builders to incorporate many of the features of site-built homes into their properties to enhance their curb appeal
increasing use of modular residences – such as accessory dwelling units (ADUs) – to accommodate multigenerational living or to quickly erect multifamily housing complexes
Key Findings in the
Prefabricated Housing Study: Shortage of Affordable Housing to Boost Interest in Prefabricated Housing
The US has a shortage of affordable housing – an issue that is expected to continue due to the high cost and length of time needed to erect site-built homes and the increasing number of younger consumers who will want to own their own homes. This shortage of site-built homes will provide a market opportunity for prefabricated housing manufacturers, who can rapidly construct – for less cost than a site-built home – single-family residences that are affordable while also offering the amenities (such as large kitchens and multiple bathrooms) increasingly desired by consumers.
Manufactured Housing to Remain Popular Housing Choice in the South
Manufactured housing accounted for the largest share of prefabricated housing demand in the US in 2019 and will continue to do so through 2024, supported by its market position in the South. Manufactured housing accounts for a much larger share of the housing market in the South for a number of reasons, including a traditionally high level of use of the homes in the region, a lack of unfavorable zoning requirements that inhibit the placement of these residences, and the ready availability of land on which these residences can be sited. Going forward, the South is expected to see strong population growth; many new residents will opt for manufactured housing units as a more affordable option compared to site-built homes.
Interest in Multigenerational Living to Boost Demand for Modular Homes
Interest in multigenerational living has been on the rise in the US as people look for ways to care for aging relatives, provide childcare, and offset high housing costs across much of the US. One way to accommodate these multigenerational families is to add ADUs– either directly to an existing home or elsewhere on a property. ADUs are modular residences that have their own bathrooms, bedrooms, and living areas but occupy much less space than site-built homes (while also costing less). ADUs are ideal for housing younger people, those who are more interesting in living spaces with a smaller footprint, or senior citizens while also allowing people to live close to their relatives.