The increased need for affordable housing in today’s market along with concern about the present economic climate is influencing consumers to be wary of spending heavily on site-built homes. These conditions lead to increased consumer preference for houses that can be built quickly with cost efficiency, and factory-built homes can meet that need. These homes are available at a price about 20 percent lower than traditional site-built homes.
A new report by Global Industry Analysts, Inc. (GIA) reveals that shipments of factory-built housing in the United States are projected to reach 133,000 units by 2020, driven by the strong demand for eco-friendly and energy-efficient homes.
As stated by the GIA new market research report, prefabricated housing is re-emerging as a one-stop solution for affordable, eco-friendly housing in the United States, after years of sluggish growth. Single-section manufactured housing is expected to witness the highest growth at a projected CAGR of 5.4%.
PR Web tells MHProNews that each year, more homebuyers are beginning to realize that manufactured, modular, panelized, and precut homes are desirable and affordable housing solutions available in the United States. Manufactured housing represents the largest market segment accounting for the bulk of shipments. While manufactured homes are built according to HUD building code, modular, panelized, and precut homes are built per the state and local building regulations.
Other advantages offered by factory-built homes include better quality and durability because building processes are carried out in controlled environments, reduced raw material waste, and economies of scale in purchasing building materials and components. Given their huge order quantities, manufacturers of factory-built housing have greater bargaining power with material suppliers. The production cost benefits from factory-built homes are passed on to the homeowner, making these homes more affordable.
Manufactured housing communities are projected to increase from 28.6% of the market in 2013 to 30.7% in 2015. Manufactured housing on private property is projected to decrease from 71.4% of the market in 2013 to 69.3% in 2015.
GIA names Clayton Homes, Cavco Industries, and Champion Home Builders as the top three in the industry, comprising approximately two-thirds of the business. Other companies make up one-third of the chart.
Other companies mentioned in the report include American Ingenuity Inc., American Homestar Corporation, Palm Harbor Homes, Commodore Corp., Deltec Homes Inc., Endeavor Homes, Gastineau Log Homes, Innovative Building Systems Inc., All American Group LLC, Excel Homes Group LLC, Lindal Cedar Homes Inc., Muncy Homes Inc., New Panel Homes Inc., Pacific Modern Homes Inc., Pleasant Valley Homes Inc., Professional Building Systems Inc., Ritz-Craft Corporation Inc., Signature Building Systems Inc., Skyline Homes, Southland Log Homes, and Wisconsin Log Homes Inc., among others. ##
(Photo Credit: Magnolia Homes)