Manufactured Housing Market Overview - 2027
The global manufactured housing market size was valued at $27,188 million in 2019, and is projected to reach $38,848 million by 2027, registering a CAGR of 6.5%. Manufactured housing, also known as prefabricated housing, is completely manufactured in a factory and is transported to the construction site using trucks. Manufactured housing is built with standardized construction modules on a steel frame, making it easier to transport, lift, and place them at the desired location. These houses can be as small as a single-section unit with just one room, or as large as large luxurious multi-section homes, having amenities such as bedrooms, bathrooms, kitchens, and living areas, as well as decks and porches.
Constructing a house is a time-consuming and expensive task, and a substantial portion of the world’s population can’t afford that. Manufactured housing is a revolutionary solution to the problem of affordable and quality accommodation globally. According to MHI (Manufactured Housing Institute) based in the U.S., the cost of construction per square foot is considerably less for manufactured housing units as compared to site build traditional homes. In addition, these houses are quick to deploy, and if required, the houses can be shifted to another place. There is a rise in the adoption of manufactured housing in non-residential construction such as hotels, malls, shopping complexes, schools, and office spaces owing to the advantages such as reduction in overall construction cost and considerable saving of time. For instance, in June 2021, a Chinese prefabricated structural unit manufacturer constructed a 10-storey apartment block in 28 hours.
The market for manufactured housing is growing with rapid population growth along with rapid urbanization which has resulted into the need for affordable housing in developed and developing countries such as U.S., Canada, U.K., Russia, India, China, and Brazil. For instance, in May 2019, government of Brazil has launched low-income housing program to fill the gap of housing deficit in the country. Moreover, demand for affordable housing is not just limited to the abovementioned countries, other parts of the world with low-income populations, especially in Africa where a large population is homeless people reside is also driving the manufactured housing market growth. For instance, according to the Centre for Affordable Housing Finance in Africa, Nigeria, a highly populated country in Africa is facing a shortage of 28 million housing units, which is expected to worsen in coming years. Thus, various government and international organization are teaming up to address this pressing issue. For instance, programmes such as the United Nations Human Settlements Programme (UN-Habitat), which aims at promoting environmentally and socially sustainable towns and cities, and simultaneously reducing inequality, discrimination, and poverty, is expected to have a positive impact on the manufactured housing industry growth during the forecast period.
Moreover, demand for manufactured housing is on the rise in developed countries such U.S., Canada, and Germany due to the advantages of manufactured housing such as energy efficiency and less carbon foot-print in environment. For instance, Clayton Homes based in the U.S. (subsidiary of Berkshire Hathaway, U.S.) offers Energy Star certified manufactured homes. Similarly, Italy is a major producer of prefabricated houses, and produces highly elegant foldable manufactured houses in large numbers. For instance, A-FOLD Houses a foldable house manufacturer located in Italy provides a wide variety of manufactured foldable houses, creating a positive outlook for the manufactured housing industry.
By Number Of Sections
Double section segment is projected to grow at a significant CAGR
Manufactured housing follows the standards which makes availability of replaceable modules very easy. For instance, in the U.S., HUD (Housing and Urban Development) and MHCC (Manufactured Housing Consensus Committee) has amended Federal Manufactured Home Construction and Safety Standards in collaboration with Federal Housing Commissioner. In the U.S., HUD certification is mandatory for manufactured houses which have been constructed after 15th June 1976. In addition, the legal aspects related to manufactured houses comes under the purview of federal law code 24 CFR 3280. These rules and regulations ensures the strength and safety of manufactured housing units, which is also the driving factor for the growth of manufactured housing during the forecast period.
Fluctuations in prices of steel which is the major raw material for construction affects the profitability of suppliers which is expected to restrain the growth of manufactured housing market during the forecast period. Increase in interest rates for mortgage loans makes buying a house a costly affair. This is also expected to restrain the market growth. The COVID-19 pandemic has drastically affected the global economy. It has disrupted the operations of many companies in the global market, which has forced the companies to halt their business operations to comply with the safety measures being announced by the governments globally. In addition, disruption in supply chain due to halt in operations has significantly impacted revenue flow of the players in market. Further, implementation of measures such as lockdown and social distancing during this pandemic has resulted in shortage of manpower, which, in turn, has negatively impacted the manufactured housing market revenue.
By Location
Private property segment is projected to grow at a significant CAGR
Key players in the market are continuously taking efforts to improve their product offerings to cater to dynamic requirements of the industry. For instance, September 2020, Clayton Homes based in the U.S. (subsidiary of Berkshire Hathaway, U.S.) has launched “CrossMod homes”, which is a new class of manufactured homes that offers seamless blending of on-site and off-site construction at affordable price. CrossMod homes includes the features such as permanent foundation, drywall interiors enhanced cabinets, energy efficient standards, elevated roof pitch, covered porch, and garage.
The global manufactured housing market is segmented on the basis of number of sections, location, application, and region. Depending on number of sections, the market is divided into single section, double section, and multi section. By location, the market is classified as private property and MH communities. Based on application, the market is bifurcated into residential and non-residential. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Application
Residential segment holds dominant position in 2019
North America dominated the market in 2019, and Asia-Pacific is anticipated to grow with the highest CAGR throughout the forecast period.
Competition Analysis
Key companies profiled in the report for the manufactured housing market include Berkshire Hathaway Inc., Cavco Industries Inc., Cumberland Japan Co. Ltd., Domino Homes SIA, Nobility Homes Inc., Omar Park Homes Ltd., Q Prefab OÜ, Skyline Champion Corporation, The Commodore Corporation, and Wigo Group. Acquisition is the key strategy being adopted by key players to remain competitive in the market. For instance, in May 2019, Clayton Homes based in the U.S. acquired Highland Homes based in the U.S. This acquisition will enable Clayton Homes to strengthen its foothold in the manufactured housing market of Florida.
By Region
North America holds a dominant position in 2019 and Asia-Pacific is expected to grow at a highest rate during the forecast period.
Key Benefits For Stakeholders
- The report provides an extensive analysis of the current and emerging manufactured housing market trends and dynamics.
- In-depth manufactured housing market analysis is conducted by constructing market estimations for the key market segments between 2020 and 2027.
- Extensive analysis of the market is conducted by following key product positioning and monitoring of the top competitors within the market framework.
- A comprehensive analysis of all the regions is provided to determine the prevailing opportunities.
- The global manufactured housing market forecast analysis from 2020 to 2027 is included in the report.
- The key players within market are profiled in this report and their strategies are analyzed thoroughly, which help understand the competitive outlook of the manufactured housing industry.
Global Manufactured Housing Market Segments
By Number Of Section
- Single section
- Double section
- Multi-section
By Location
- Private Property
- MH Communities
By Application
- Residential
- Non-residential
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- Scandinavia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Manufactured Housing Market Report Highlights
| Aspects | Details |
 By NUMBER OF SECTIONS |
|
 By LOCATION |
|
 By APPLICATION |
|
 By Region |
|
 Key Market Players | DOMINO HOMES SIA, NOBILITY HOMES, INC., SKYLINE CHAMPION CORPORATION, CUMBERLAND JAPAN CO., LTD., .WIGO GROUP, OMAR PARK HOMES LIMITED, Cavco Industries, Inc., BERKSHIRE HATHAWAY INC., Q Prefab OÜ, THE COMMODORE CORPORATION |
Analyst Review
The global manufactured housing market is expected to grow at a significant rate in the near future, owing to growth in population and rapid urbanization, which has resulted into rise in need for affordable and quality accommodation. The rise in investments by governments and international institutions in the housing sector around the globe has led to increase in residential construction activities. For instance, in March 2020, World Bank has announced the funding of $500 million for Egypt to improve the availability of affordable housing to families with low household income. This is expected to boost growth of the manufactured housing market during the forecast period. The global manufactured housing market has witnessed considerable growth in emerging markets such as China, Africa, and Latin America owing to the fact that manufactured housing is energy efficient and economical solution for affordable housing deficit. Technological advancements such as construction robotics and BIM (Building Information Modeling) are expected to provide lucrative opportunities for new players to enter into manufactured housing market. For instance, in June 2020, ICON Technology, Inc. which is U.S. based construction technology start-up, has delivered 3D printed manufactured house for 480 homeless families in Austin in collaboration with Community First Credit Union, which is a mortgage finance firm based in the U.S.
Key players operating in the manufactured housing market are taking continuous efforts to improve their product offerings to cater to ever changing and dynamic requirements of their customers. Players operating in the market have adopted acquisition as their key growth strategy to gain a stronger foothold. For instance, in December 2018, Clayton Homes based in the U.S. acquired Mungo Homes based in South Carolina, U.S. This acquisition will enable Clayton Homes to provide affordable manufactured homes to its customers in Georgia, North Carolina, South Carolina, and Alabama. Thus, all these factors together are anticipated to significantly contribute toward the growth of the global manufactured housing market during the forecast period.
The key trending markets based on the application, in the manufactured housing market is the residential industry.
On the basis of number of sections, the double section segment is expected to be the most influencing segment growing in the manufactured housing market report.
To get latest version of manufactured housing market report can be obtained on demand from the website.
The manufactured housing market size was $27,188.0 million in 2019 and is projected to reach $38,848.5 million in 2027, growing at a CAGR of 6.5% from 2020 to 2027.
The forecast period considered for the manufactured housing market is 2020 to 2027, wherein, 2019 is the base year, 2020 is the estimated year, and 2027 is the forecast year.
The top ten market players are selected based on two key attributes - competitive strength and market positioning
The base year considered in the manufactured housing market is 2019.
Based on the location, in 2019, the MH communities segment generated the highest revenue, accounting for 68.9% of the market, and is projected to grow at a CAGR of 6,1% from 2020 to 2027.
The report contains an exclusive company profile section, where leading 10 companies in the market are profiled. These profiles typically cover company overview, geographical presence, and market dominance (in terms of revenue and volume sales).
The market value of manufactured housing market is $25,013.0 million in 2020. The decline is mainly due to the COVID-19 pandemic and the lockdown imposed by various countries.
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