Prefabricated Housing forecasts for 2011 & 2016 - Bharatbook.com

PRLog (Press Release) – Jan 30, 2008 – Demand to rise more than 3% annually through 2011 The US prefabricated housing industry is composed of two principal product segments that have had different experiences over the past decade. Since 1998, manufactured housing shipments have declined nearly every year, and in 2006 they were one-third of their cyclical peak. Shipments of other prefabricated housing types rose slightly over this period, aided by a residential construction boom. The larger manufactured housing segment is expected to return to small, albeit positive growth through 2011, while other prefabricated housing types see a modest penetration growth. As a whole, shipments of prefabricated housing are forecast to grow in excess of three percent per annum, reaching $10.3 billion in 2011.

Manufactured housing

segment to rebound after long period of decline

Manufactured housing is projected to achieve above-average growth through 2011, and approach $6.4 billion. This is the result of positive shipments growth after a long period of depressed demand during which easier credit and rising home value made site-built homes relatively more attractive. Driving demand for manufactured housing will be multisection units, particularly those with three or more sections. Demand for multisection manufactured housing will benefit from increased market penetration, as households increasingly choose the economy of manufactured housing over site-built homes.

Precut homes to fare best among other types

Shipments of precut homes are forecast to perform the best of all other types of prefabricated housing. Shipments are expected to grow about two percent annually to 20,500 units in 2011. Demand will be particularly strong in the growing Midwest housing market, but will also benefit from increased market penetration in the contracting housing market of the South.

Midwest to be fastest growing regional market

The Midwest region is expected to be the fastest growing source of demand for prefabricated housing through 2011. This region accounted for approximately 18 percent of total demand for prefabricated housing in 2006, second only to the South. Rebounding from the poorest performance of any region from 2001 to 2006, demand for new housing in the Midwest is forecast to grow through 2011, providing favorable conditions for prefabricated housing. Strength in the Midwest will be particularly beneficial to manufactured and precut housing.

Study coverage

This new Freedonia industry study, Prefabricated Housing, is available for $4400. It presents historical demand data for the years 1996, 2001 and 2006 plus forecasts for 2011 and 2016 by product and regional US market. The study also considers market environment factors, evaluates company market share and profiles 30 industry competitors.

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