The share of non-site-built single-family homes (modular and panelized) declined in 2021, continuing a trend of steady decline since the mid-2000s. According to the NAHB, 10,000 homes were built modularly in 2021 and 14,000 homes were panelized in 2021, accounting for 2% of single-family homes.
While the market share is small, there exists potential for expansion. This 2% market share for 2021 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 1992-2021 period.
One notable regional concentration is found in the Midwest where 6% (7,000 homes) of the region’s 125,000 housing units were completed using non-site build construction methods, the highest share in the country.
With respect to multifamily construction, approximately 1% of multifamily buildings (properties, not units) were built using modular and panelized methods. Similarly to single-family construction, this market share was expected to grow, but the expected gains did not materialize due to various constraints in the industry. In the year 2000 and 2011, 5% of multifamily buildings were constructed with modular (1%) or panelized construction methods (4%).
