Prefabricated Wood Building Manufacturers NAICS 321992

May 9, 2025 - Existing Home Sales Drop

• Sales of existing US homes decreased by 5.9% in March from February and were down 4.2% year-over-year, according to the National Association of Realtors (NAR). Total housing inventory in March was up 8.1% over February and was 19.8% higher than in March 2024. Unsold inventory in March represented a 4.0-month supply, up from 3.2 months a year earlier. NAR chief economist Lawrence Yun said, "Home buying and selling remained sluggish in March due to the affordability challenges associated with high mortgage rates. Residential housing mobility, currently at historical lows, signals the troublesome possibility of less economic mobility for society." Existing home sales are a demand driver for several types of prefabricated wood buildings, such as storage sheds.
• North American construction and engineering spending for multifamily projects dropped 6% in 2024 and is forecast to decline by an additional 12% in 2025, according to FMI’s second-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.

• Trade strife may increase lumber prices, which could pinch the margins of prefabricated wood building manufacturers if higher prices can’t be passed on to customers. On March 1, Trump initiated an investigation into whether US imports of Canadian lumber posed a national security threat, according to The New York Times. The inquiry could enable Trump to enact fresh tariffs on lumber imports from Canada on top of a 25% tariff on all Canadian imports that went into effect on March 4 but was paused for a month two days later for products that are compliant with the United States-Mexico-Canada Agreement (USMCA). The White House claims the US has the resources to be self-sufficient in its lumber needs, but US sawmills can’t compete with imports dumped unfairly on the US market. White House officials said lumber supply is a national security issue because the US military is a significant lumber consumer.
• 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.