Market Size of Prefabricated Housing Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 22.87 Billion |
| Market Size (2029) | USD 30.93 Billion |
| CAGR (2024 - 2029) | 6.23 % |
| Fastest Growing Market | Europe |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Prefabricated Housing Market Overview
The Prefabricated Housing Market size is estimated at USD 22.87 billion in 2024, and is expected to reach USD 30.93 billion by 2029, growing at a CAGR of 6.23% during the forecast period (2024-2029).
The construction industry has also seen delays in finishing projects due to labor shortages and a global supply deficit in several common building materials, including steel, paint, cement, wood, cabinets, and electrical components. Compared to before the pandemic, wait times for building materials have increased by at least double, and in some cases, by more than 10 times. Construction projects will experience completion delays and increased cost pressure due to the unfavorable weather affecting the US East Coast since the start of 2022.
The modular building market is expanding as demand rises, even though it accounts only for a small portion of the USD 1 trillion construction industry. Prefabrication is becoming increasingly popular because of its on-site effectiveness, increased worker productivity and safety, and cheaper construction costs. In addition to these advantages, modular construction offers fantastic prospects for more responsible use of building materials and environmentally friendly designs. It also marks a significant advancement in environmental sustainability.
Not all mobile houses are modular. According to industry experts, 80% of manufactured homes are still at the original location where they were first installed. A manufactured home can be moved for between USD 5,000 and 10,000 or even USD 20,000, depending on the distance, licenses and taxes, and the house size. The US Census Bureau estimates that there are about 7 million prefabricated homes in the country (7.5% of all single-family homes). It is good to see that more than 80% of contractors have already embraced off-site building techniques like modularization.
Due to various causes, including a tight labor market, rising input costs, and increased demand due to government incentives, the construction and building industries have experienced significant price inflation in most US states. However, the problems above are beginning to affect all types of construction. The rise in costs traditionally started in residential construction.
Despite falling demand for housing, Singapore's house prices are still rising. In the first quarter of 2023, national inflation-adjusted house prices increased by 5.59% from a year earlier, following a Y-o-Y increase of 2.05% in Q4 2022, 5.7% in Q3, 3.73% in Q2, and 2.22% in Q1. In the last quarter, real estate prices increased by 1.99% every quarter.
