A comprehensive report released by Global Industry Analytics (GIA) reveals that demand for modular homes is expected to experience healthy growth over the coming years. New market research is showing that pre-fabricated housing (often called “prefab”) is now re-emerging as a simple solution for affordable, green housing.
Prefab housing is an umbrella term including manufactured, modular, panelized, and pre-cut homes. Of these housing types, manufactured homes represent the the largest market segment, accounting for the bulk of shipments. In relation, single-section manufactured homes are expected to see the highest growth at a projected Compound Annual Growth Rate (CAGR) of 5.4%.
So why is prefabricated housing seeing such a boom in demand? Some of the big factors driving growth include:
Modular housing has brought affordable living to thousands of Americans. According to research, prefab homes are about 20% less expensive than traditional on-site built homes. Potential homeowners can also purchase repo homes that are move-in ready and a fraction of the price of new construction.
Reduced building time
Want to move into your new home quickly? Because modular housing allows both home construction and foundation site work to be done simultaneously, the overall completion schedule can be reduced by up to 50%. And since the homes are manufactured indoors, there are no delays (or damaged materials) caused by bad weather!
Modular homes contain recyclable elements and have the advantage of being picked up and transported. Therefore, very little material goes to waste. Furthermore, the homes are built in a controlled space with a standardized system, so there is little excess waste. In fact, material waste can be reduced by up to 90% in modular building. What material isn’t used can usually be recycled or re-used a second time in the process. Furthermore, the insulation used for the walls, floors, and roof have an ozone depletion potential of zero, reducing your home’s impact on the environment.
Up to 67% less energy is needed to build a modular home than a traditionally-constructed home. Manufactured homes can even be retrofitted with renewable energy technology to make it even more economical. Saving energy means saving money.
To view the entire GIA report on housing trends, as well as some infographics on the benefits of modular housing, click here.