Prefab housing market expected to grow through 2018
Shipments of prefabricated housing in the U.S. are projected to reach 112,000 units by the year 2018, staging a comeback in tandem with the recovery in global economy and resurgence in housing and construction activity.
That's the word from a comprehensive U.S. market report on the prefabricated housing market from Global Industry Analysts Inc.
Gradual recovery of the economy is creating fertile ground for revitalizing demand for prefabricated housing in the North American market.
Manufactured, modular, panelized, and precut homes are the major types of prefab housing prevailing in the US market, with manufactured housing accounting for the bulk of shipments. While manufactured homes are built according to HUD building Code, modular, panelized, and precut homes are built as per the state and local building regulations.
According to the market research report on Prefabricated Housing, prefabricated buildings are re-emerging as a one-stop solution for affordable, eco-friendly housing following years of sluggish growth. Prefab home manufacturers and builders are keenly eyeing the baby boomer population, who are expected to drive the demand for pre-owned and new houses in the near future.
Manufactured housing represents the largest product segment accounting for more than half of market volumes.
Modular homes are expected to outstrip other segments with a projected annual growth rate of 2.6 percent. Within the manufactured homes sector, single-section manufactured housing overtook multi-section manufactured housing as the largest sub-segment.
Manufactured Housing is highly popular among the lower-income home purchasers, employed youth, newly-weds, and senior citizens. However, the lack of adequate financial support and incentives from the government continues to stall the recovery of the manufactured housing industry.
Despite the close resemblance of the modern prefabricated houses to site-built homes, growth of the market in the U.S. has been largely tempered by consumers associating manufactured and mobile homes with the ‘trailer park homes’ of yesteryears that were largely owned by weaker sections of the society and transient residents.
Growing environmental awareness and regulatory pressures are also driving the demand for eco-friendly and energy-efficient modular homes. Modular homes are gaining popularity among new home buyers, as these factory-built houses provide owners with similar monetary, legal, and taxation benefits, such as stick-built homes.
Moreover, the increasing adoption of Building Information Modeling (BIM) software in the design phase, complemented by other novel manufacturing technologies, is boosting consumer and building-contractor acceptance for these volumetric constructions.
Manufacturers and builders are increasingly incorporating panelized housing technologies, such as Structural Insulated Panels(SIPs) and other cutting-edge eco-friendly technologies, to secure LEEDs, Energy Star, and local green-building certifications for their projects, in order to improve the appeal of panelized homes among the growing section of environmentally aware consumers.
Although the popularity of traditional kit homes waned steeply in recent years, other forms of Precut Housing, including packaged log homes, geodesic dome homes and timber frame homes, continue to enjoy a robust following among American consumers. Log home manufacturers are gearing up to meet a revival in demand for retirement homes in the domestic market.
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