Prefabricated Wood Building Manufacturers NAICS 321992

Jul 9, 2025 - Lumber Futures Ease

• In the second week of July 2025, futures prices for lumber – a key input for manufacturers of prefabricated wood buildings – were about $610 per thousand board feet, which broke a three-month high seen in late June, according to Trading Economics. However, lumber futures in the second week of July were up more than 40% compared to the same period a year earlier. High interest rates continue to weaken homebuilding activity, and the traditional summer slowdown came early in 2025, contributing to lower lumber prices. However, Southeastern log shortages caused by bad weather, production cuts at smaller Eastern sawmills, and export demand from Asia have helped to buoy prices for certain lumber types and dimensions.
• 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 0.8% in May from April but were down 0.7% year-over-year, according to the National Association of Realtors (NAR). NAR chief economist Lawrence Yun said, "The relatively subdued sales are largely due to persistently high mortgage rates. Lower interest rates will attract more buyers and sellers to the housing market. Increasing participation in the housing market will increase the mobility of the workforce and drive economic growth. If mortgage rates decrease in the second half of this year, expect home sales across the country to increase due to strong income growth, healthy inventory, and a record-high number of jobs." Existing home sales help drive demand for prefabricated buildings, including sheds and auxiliary dwelling units (ADUs).
• Two billionaires – Airbnb co-founder Joe Gebbia and real estate mogul Rick Caruso - are each contributing $15 million to help build prefabricated homes for wildfire victims in Los Angeles, California, according to Bloomberg. The donations will go to the Steadfast LA foundation, which will buy the homes from Samara, a prefabricated building maker controlled by Gebbia. Lower-income residents of the Pacific Palisades and Altadena neighborhoods who were uninsured or underinsured will be prioritized, and the first homes are expected to be ready for permanent installation in four months. Industry insiders note that prefabricated homes are an increasingly popular option for disaster recovery because production is less subject to labor shortages than site-built homes.