National Association of Home Builders Economic Research Blog

Market Share for Modular and Other Non-Site Built Housing in 2025

The total market share of non-site-built single-family homes (modular and panelized) was just 3% of single-family homes in 2025, according to NAHB analysis of completion data from the U.S. Census Bureau’s Survey of Construction (SOC). This matched the 3% market share recorded in both 2023 and 2024. The market share of non-site-built homes has been steadily declining since the early 2000s, despite growing interest in non-site-built construction. This low market share runs counter to some media commentary that suggests recent gains in off-site construction. Nonetheless, there is potential for market share gains in the years ahead as builders seek to improve productivity in the residential construction sector.

In 2025, approximately 30,000 single-family homes were built using modular (14,000) and panelized/pre-cut (16,000) construction methods, out of 975,000 completed single-family homes. It is worth noting that the Census Bureau’s definitions of off-site construction are relatively narrow. In a separate survey, the Home Innovation Research Labs‘ Survey of U.S. Home Builders reports a higher share for panelized construction (5%–12%) due to its broader definition of “panelized” construction.

While the Census-measured market share is small, there is potential for expansion. The 3% market share recorded in 2025 represents a decline from the years preceding the Great Recession. In 1998, 7% of completed single-family homes were built using modular (4%) or panelized (3%) construction methods. This represented the highest market share during the 1992–2025 period.

Two notable regional concentration exists in the Northeast and the Midwest. These two regions recorded the highest market shares of homes built using non-site-built methods. In the Northeast, 8% (5,000 homes) of the region’s 61,000 completed single-family homes were built using non-site-built methods. In the Midwest, 5% (6,000 homes) of the region’s 124,000 completed single-family homes were built using these methods. However, in absolute terms, the South continues to be the largest market for this type of construction, with 16,000 homes built using non-site-built methods.

With respect to multifamily construction, approximately 3% of multifamily buildings (structures rather than individual units) were built using modular and panelized methods. This was significantly lower than the 7% share recorded in 2023 but was in line with the average over the last five years. Panelized construction methods accounted for the larger share (2%) of non-site-built multifamily construction. Prior to 2024, the highest combined share of modular and panelized construction in multifamily buildings occurred in 2000 and 2011, when 5% of multifamily buildings were constructed using modular (1%) or panelized (4%) methods.

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