The total market share of non-site built single-family homes (modular and panelized) was just 3% of single-family homes in 2023, according to completion data from the Census Bureau Survey of Construction data and NAHB analysis. This is a slight increase from the 2% share in 2022. This share has been steadily declining since the early-2000s despite the high-level of interest for non-site built construction. This low market share in fact runs counter to some media commentary on off-site construction suggesting recent gains. Nonetheless, there exists potential for market share gains in the years ahead due to the need to increase productivity in the residential construction sector.
In 2023, there were 27,000 total single-family units built using modular (12,000) and panelized/pre-cut (15,000) construction methods, out of a total of 999,000 single-family homes completed. It is worth noting that the Census definitions of off-site construction are relatively narrow. In a separate survey, the Home Innovation Research Labs Survey of U.S. Home Builders has a higher share for panelized construction (5-12%) due to a wider definition of “panelized” construction.
While the Census-measured market share is small, there exists potential for expansion. This 3% market share for 2023 represents a decline from years prior to the Great Recession. In 1998, 7% of single-family completions were modular (4%) or panelized (3%). This marked the largest share for the 1992-2023 period.
One notable regional concentration is found in the Northeast and Midwest. These two regions tie for the highest market share of homes built using non-site build construction methods. In the Northeast, 5% (4,000 homes) of the region’s 61,000 housing units were completed using non-site built construction methods. At the same time, in the Midwest, 5% market share (6,000 homes) of the region’s 126,000 housing units were completed using non-site build construction methods.
With respect to multifamily construction, approximately 7% of multifamily buildings (properties, not units) were built using modular and panelized methods, marking the highest level in the last two decades. This is significantly higher than the 2% share in 2022 and 1% share in 2018-2021. It is notable that modular construction methods accounted for 5% of this share, whereas in previous years it was only panelized construction methods that made up the small share of non-site build methods in multifamily construction. Prior to last year, the highest levels of modular and panelized methods share in multifamily construction was in 2000 and 2011, where 5% of multifamily buildings were constructed with modular (1%) or panelized construction methods (4%).
