Prefabricated Wood Building Manufacturers NAICS 321992

Sep 9, 2025 - Flat Growth for Modular, Panelized Homes

• In 2024, the total market share for new modular housing and panelized single-family homes was 3% of all new single-family homes, unchanged from 2023, according to recent National Association of Home Builders (NAHB) analysis of Census Bureau data. Modular housing and panelized single-family home market share have been declining over time. In 1998, single-family modular homes held a 4% market share, and panelized homes had a 3% share. Despite the weak market share in recent years, there is the potential for more modular and panelized single-family housing demand amid the lack of productivity in the residential construction sector. In 2024, about 3% of multifamily buildings were constructed with modular and panelized methods, down significantly from 7% in 2023.
• Lumber futures have plunged 24% since early August, signaling economic caution amid trade uncertainty and a weakening housing market, according to The Wall Street Journal. A glut of wood - stockpiled in anticipation of higher tariffs on Canadian imports - has collided with softening demand, prompting major producers like Interfor and Domtar to curtail output. While high lumber prices during the pandemic stemmed from inflation and supply chain strain, current declines result from reduced construction activity and tariff volatility. Residential building permits and construction spending are down, but falling mortgage rates may revive demand. Analysts warn that further production cuts are likely as the market adjusts to oversupply and shifting trade dynamics. Lower lumber prices could reduce production costs for prefabricated wood building manufacturers, but less homebuying and construction activity undermine key demand drivers for storage sheds and other prefabricated wood buildings.

• North American construction and engineering spending for multifamily projects is estimated to have dropped 6% in 2024 and is forecast to decline by an additional 9% in 2025, according to FMI’s third-quarter 2025 North American Engineering and Construction Outlook. Headwinds include a recent jump in new apartment supply, unfavorable cost conditions, and slower rent growth. However, these trends are expected to begin easing in 2026 as rent growth and multifamily starts regain steam. One bright spot is modular multifamily construction, which is gaining popularity because it can bring units online cost-effectively amid labor shortages and rising materials costs.
• Sales of existing US homes increased by 2% in July from June and were up 0.7% year-over-year, according to the National Association of Realtors (NAR). NAR chief economist Lawrence Yun said, "The ever-so-slight improvement in housing affordability is inching up home sales. Wage growth is now comfortably outpacing home price growth, and buyers have more choices.” Existing home sales help drive demand for prefabricated buildings, including sheds and auxiliary dwelling units (ADUs).