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Study of Single-Family Homes Built Off-Site

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Study of Single-Family Homes Built Off-Site


November 14, 2018
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Photo: Unsplash/Thomas Curryer

The share of single-family homes not built on-site was 3.3 percent of the sector's total completions volume in 2017, according to the latest analysis by the National Association of Home Builders

Chief economist for the trade group Robert Dietz says that, as a result of the ongoing tightness of labor in residential construction, along with decreasing housing affordability, the share of prefabricated and modular single-family homes built off-site is expected to grow. However, the market share of 3.3 percent in 2017 was lower than in years past, with 1997 and 1998 having the highest share, 7 percent. NAHB finds that by region, more than five percent (3,000) of the single-family homes in the Northeast completed in the time studied were modular.

With respect to multifamily construction, approximately 2 percent of multifamily buildings (properties, not units) were built using modular and panelized methods. Similarly to single-family construction, this market share is expected to grow, but it was also larger in years past. In the year 2000, 5 percent of multifamily buildings were constructed with modular (1 percent) or panelized construction methods (4 percent). It is worth noting that the market share of 50+ unit apartment unit construction was considerably lower in 2000 (14 percent) than in 2017 (52 percent).

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