Multifamily Modular and Prefabricated Housing Construction Market Report 2025

The multifamily modular and prefabricated housing construction market size has grown strongly in recent years. It will grow from $52.12 billion in 2024 to $55.73 billion in 2025 at a compound annual growth rate (CAGR) of 6.9%. The growth in the historic period can be attributed to urbanization trends, affordability and cost efficiency, sustainability and green building practices, speed of construction, housing shortages and population growth.

The multifamily modular and prefabricated housing construction market size is expected to see strong growth in the next few years. It will grow to $73.84 billion in 2029 at a compound annual growth rate (CAGR) of 7.3%. The growth in the forecast period can be attributed to increased urbanization and density, focus on affordable housing solutions, environmental regulations and net-zero goals, supply chain resilience, innovation in design and customization. Major trends in the forecast period include off-site construction and assembly, affordable housing solutions, innovative materials and construction techniques, focus on building information modeling (BIM), modular construction for urban development.

The advantages of modular construction are expected to drive the growth of the multifamily modular and prefabricated housing market. Modular and factory-built housing offer numerous benefits, including cost and time savings, reduced material waste, assembly-line quality control, decreased strain on local neighborhoods, and improved construction safety. For instance, in 2023, the Modular Building Institute, a U.S.-based non-profit trade association focused on non-residential modular construction, reported that the modular industry accounted for an estimated 6.64% of new construction starts, with a total project value of around $14.6 billion. Data from 49 North American manufacturers revealed an average revenue of $23,474,970 per manufacturer, which constituted 43% of the total value of projects using modular construction. As a result, the benefits of modular and prefabricated construction are likely to increase the interest of multinational construction companies in modular housing, leading to higher revenue and growth in the multifamily modular and prefabricated housing market during the forecast period.

The growth of the multifamily modular and prefabricated housing construction market is further fueled by the increasing demand for housing affordability. Housing affordability, reflecting the ability of households or individuals to comfortably afford housing without financial strain, is a critical concern, especially in urban areas with higher housing costs. The cost savings and efficiency offered by multifamily modular and prefabricated housing make it a practical solution to address the demand for affordable housing. The Office for National Statistics reported a rise in housing affordability in 235 places (71%) in March 2023 compared to 2021, indicating a growing market for modular construction. The increasing demand for affordable housing options is a key driver for the growth of the multifamily modular and prefabricated housing construction market.

Government initiatives worldwide to promote sustainable construction and reduce waste, coupled with the enforcement of modular and prefabricated systems, emerge as a significant trend shaping the multifamily modular and prefabricated housing market. Governments, including Singapore, are actively endorsing sustainable practices in the building sector. The Singapore government, through the Building and Construction Authority (BCA), mandates the adoption of the Prefabricated Prefinished Volumetric Construction (PPVC) acceptance framework at development sites. This framework stipulates performance requirements for PPVC systems and in-built bathrooms, aligning with the government's commitment to green buildings and modular housing. The global trend toward environmentally friendly construction and modular systems, driven by government directives, is expected to remain a pivotal influence on the multifamily modular and prefabricated housing market.

Major companies in the multifamily modular and prefabricated housing construction market are pursuing innovative strategies, such as introducing new product brands such as the Modular Attainable Housing Brand. An exemplar of this is Greystar Real Estate Partners, a US-based real estate company, which, in June 2023, launched the attainable brand. This brand specifically focuses on Greystar's impact housing offering, aiming to provide more affordable housing options for vulnerable groups impacted by limited rental choices in the US. The launch of the attainable brand underscores Greystar's commitment to addressing the challenge of affordable housing. Leveraging modular construction techniques, Greystar aims to deliver sustainable, high-quality housing options at affordable prices for tenants, demonstrating a strategic approach to profitability and meeting market needs.

In September 2024, ATCO Structures and Logistics Ltd, a U.S.-based modular construction company, acquired NRB Modular Solutions for $40 million. This acquisition aims to enable ATCO to offer a wider array of modular products, encompassing commercial, industrial, educational, and residential solutions. NRB Limited, based in Canada, specializes in manufacturing modular buildings, with a particular emphasis on multifamily modular and prefabricated housing construction.

Major companies operating in the multifamily modular and prefabricated housing construction market include Laing O'Rourke, ATCO Ltd., Algeco UK Limited, Ritz-Craft Corporation, Red Sea International Company, Pleasant Valley Homes Inc., Connect Homes LLC, Kiss House, Marlette Homes Inc., Guerdon LLC, Northstar Systembuilt Inc., Cube Haus, Blu Homes Inc., Plant Prefab Inc., Simplex Homes Inc., Revolution Precrafted Properties Limited, Pine Grove Homes Inc., KLEUSBERG GmbH & Co. KG, Blokable Inc., New Era Building Systems Inc., nHouse Limited, PopUp House, Mod-U-Kraf Homes Inc., Stratford Homes LLC.

Asia-Pacific was the largest region in the multifamily modular and prefabricated housing construction market in 2024. Africa is expected to be the fastest-growing region in the global multifamily modular and prefabricated housing construction market share during the forecast period. The regions covered in the multifamily modular and prefabricated housing construction market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the multifamily modular and prefabricated housing construction market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The multifamily modular and prefabricated housing construction comprises companies involved in constructing multifamily modular and prefabricated homes, generating sales revenue. Modular construction involves offsite unit construction and inspection in a manufacturing facility, while onsite assembly involves building the podium, foundation, and infrastructure. This method aims to expedite construction time and reduce costs to augment housing production.

Primary types within multifamily modular and prefabricated housing construction include permanent and relocatable houses. Relocatable homes are partially or fully assembled in a manufacturing facility using modular construction techniques, meeting applicable codes or state standards. These buildings are designed for multiple reuses or repurposing before relocation to new construction sites. Different construction materials encompass steel, precast concrete, wood, plastic, and others.

The multifamily modular and prefabricated housing construction market research report is one of a series of new reports that provides multifamily modular and prefabricated housing construction market statistics, including multifamily modular and prefabricated housing construction industry global market size, regional shares, competitors with a multifamily modular and prefabricated housing construction market share, detailed multifamily modular and prefabricated housing construction market segments, market trends and opportunities, and any further data you may need to thrive in the multifamily modular and prefabricated housing construction industry. This multifamily modular and prefabricated housing construction market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The multifamily modular and prefabricated housing construction market includes revenues earned by fees, interest payments, commissions or transaction charges. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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