Modular and Other Non-Site Built Housing In 2021

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The total market share of non-site built single-family homes (modular and panelized) was at 2% of single-family completions in 2021, according to Census Bureau Survey of Construction data and NAHB analysis. This share has been steadily declining since early-2000s despite the high-level of interest for non-site built construction.

In 2021, there were 24,000 total single-family units built using modular (10,000) and panelized/pre-cut (14,000) construction methods, out of a total of 970,000 total single-family homes completed. While the market share is small, there exists potential for expansion. This 2% market share for 2021 represents a decline from years prior to the Great Recession. In 1998, 7% of single-family completions were modular (4%) or panelized (3%). This marked the largest share for the 1992-2021 period.

One notable regional concentration is found in the Midwest where 6% (7,000 homes) of the region’s 125,000 housing units were completed using non-site build construction methods, the highest share in the country.

With respect to multifamily construction, approximately 1% of multifamily buildings (properties, not units) were built using modular and panelized methods. Similarly to single-family construction, this market share was expected to grow, but the expected gains did not materialize due to various constraints in the industry. In the year 2000 and 2011, 5% of multifamily buildings were constructed with modular (1%) or panelized construction methods (4%).

 



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10 replies

  1. The question is, if there’s more interest why aren’t there more opportunities to develop such housing? Do cities need to embrace such housing by rezoning more land? In our area of northern CA all the communities have Der homes taking space and there’s nowhere you can affordable place new units do to cost of infrastructure.

    • The cost of infrastructure has effected us everywhere in this country, so I believe you are correct. As for modular homes; At one time not too long ago, this was the way to go. Although, that has changed drastically. Today, they are much higher in cost. You still may get more “bang for your buck” but not much less than a stick built home. When paying such high prices, buyers are spending more time shopping around.

      • Whereas panelized or component building is considered stick built under code buy the State of Wisconsin for residential home builds, we continue to proudly custom design homes utilizing panelized components from Amwood Component Systems aka Amwood Homes. We are located in south-central Wisconsin. This method provides technologically advanced engineering, protects the rough-in from adverse weather elements and proves to be an affordable way to build a home competing easily with traditional stick built methods on design as well as overall value including on price points.

        Diana & Mark Setzke, Setzke Custom Homes, Ltd.

  2. Sorry about typos. That’s have older homes, and affordably place

  3. The market is crying for a solution right now for SF & MF and we are not anywhere close to meeting current demand for offsite down in Southern Cal. The demand is insane, executing and meeting those demands is hard. The latter is why I think the market share is only 2% and not 10%+. Call me crazy but in 5-10 years offsite will be closing in on 10% of the market IMO.

    • Agree, given the share from the late 90s, a 10% share is a good forecast…

    • I own a fully developed property available now to build 20 homes which would sell most likely prior to completion.

      I do not build, but have offered all kinds of agreements on my land to bring homes to my community. I can not find any builders, developers, investors wanting to build homes. Although, I hear on going complaints how no one can afford to build.

      Understanding this is true, but in my case the work has been done for you and the price is very affordable. Money can still be made on affordable housing. So, what is the problem? Could it be more is going on then we want to acknowledge? Are expectations too high for todays market? Does politics play a role here somewhere?

      Just wondering???

  4. In areas where it is hard to find contractors factory built goes quicker and can be a good choice.

    • Very True! I have several manufactured/modular homes in my development. Although, even factory built are not being built by developers/investors. We continue to see the need for housing yet no one is building these homes.

      So what is the goal of a developer/contractor/investor? To make a profit? If one could invest in factory built for 260,000.00 turn key and sell for 290,000.00 is that not enough? I would think 30,000.00 is a good return in 6 months. In my development this can be done.

      So I wonder, what am I missing here?

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