The Offsite Construction Market Share Flattens Nationally in 2024

In 2024, 28,000 single-family homes were built using modular or panelized/pre-cut construction methods out of 1,019,000 total single-family homes completed, making the total market share for offsite construction just 3%, according to the Census Bureau Survey of Construction data and NAHB analysis. The share was also 3% in 2023, but has been declining since the early-2000s despite high levels of interest in offsite construction.

The offsite construction market share for multifamily home building was also 3% in 2024, a significant decrease from 7% in 2023. In previous years, only panelized construction made up the multifamily offsite market share. But last year, modular construction accounted for 2% of the offsite market share.

The total market share may be small, but there is potential for offsite construction to gain momentum in the years ahead with the residential construction sector needing an increase in productivity. The market share has also been much higher in previous years. In 1998, 7% of single-family completions were modular or panelized.

Regionally, the Midwest and the Northeast have the highest concentration of homes built using offsite construction methods. In the Midwest, 7% of the region’s homes were completed using modular or panelized methods, and in the Northeast, 5% of homes were completed with these methods. Although the region’s market share was much lower in the South, it continues to boast the largest amount of offsite residential construction with 13,000 homes completed in 2024.

NAHB members interested in learning more about offsite construction can subscribe to the Offsite Construction Video Series, where leaders of the system-built construction industry explore essential topics in modular, panelized, concrete, and log and timber frame housing. NAHB’s Homebuilders Guide to Offsite Construction also provides an overview of the offsite construction industry and various building systems, the benefits of these systems and how builders can incorporate them into their business.

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