Prefabricated Home Manufacturing in Canada - Market Research Report

Heading home: Industry revenue growth will outpace housing starts due to rising mortgage rates

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

Prefabricated home suppliers produce modular and manufactured homes that are low-cost substitutes to traditional, site-built units. The industry caters to more marginal homebuyers and experienced a notable swing in sales during the past five years. Rising home prices during the period priced more buyers out of the traditional housing market and raised demand for prefabricated homes. Despite broader economic disruptions to the Canadian economy due to the COVID-19 pandemic, rising incomes and favourable financial conditions stoked demand for manufactured homes in 2020 and 2021. As borrowing rates climbed and building costs rose, demand is estimated to have fallen sharply in 2022. Overall, revenue is forecast to drop at a CAGR of 1.2% to $2.3 billion over the five years to 2023, including a decrease of 2.9% during the current year as demand continued to falter due to higher rates and prices. The Prefabricated Home Manufacturing industry in Canada comprises establishments primarily engaged in manufacturing mobile homes and nonresidential mobile buildings, in addition to prefabricated or pre-cut wood buildings, sections and panels. Industry structures are portable units built on a chassis equipped with wheels, but not designed for multiple or continuous movement.