Despite More Interest, Use of Off-Site Construction Methods Remains Limited

Interest in off-site construction is growing, with many believing it could help produce more homes at a more affordable rate. Yet in 2024, modular and panelized single-family homes still represented only a small slice of the market. U.S. Census Bureau data analyzed by the National Association of Home Builders shows that just 3% of single-family homes built last year used off-site construction methods, which is unchanged from 2023. Out of the 1,019,000 single-family homes completed in 2024, 28,000 were built using off-site construction techniques, including 13,000 modular and 15,000 panelized or pre-cut units.

Still, some parts of the country are adopting these construction methods at higher rates.

One notable regional concentration is found in the Midwest and the Northeast. These two regions have the highest market share of homes built using non-site build methods. In the Midwest, 7% (8,000 homes) of the region’s 136,000 housing units were completed using these methods. In the Northeast, 5% (3,000 homes) of the region’s 66,000 housing units were completed using non-site build methods. However, numerically, the South continues to be the biggest market for this type of construction where 13,000 homes were built using non-site build methods.