The Vibrant Sector of Prefabricated Houses

Prefabricated buildings came into limelight during the world war periods as they were the fastest and affordable way to restore houses that were destroyed during the war. Prefabricated houses played a key role in eastern European countries, as well as the United Kingdom to reduce the housing shortages during the 20thcentury. However, prefabricated buildings are expected to become increasingly common in future due to the sustainability benefits they offer with their modern housing solutions. In fact, the global demand forprefabricated housingis forecast to increase 2.7% per annum through 2019 to 3.4 million units, according to a new Freedonia study. In the developing countries of the Asia/ Pacific region, Africa/Mideast region, and Central and South America, advances in overall housing activity as well as greater market penetration ofprefabricated housingwill drive gains demand going forward. In these regions,prefabricated housingwill find applications both as low cost units to reduce housing shortages particularly in multifamily applications and as high quality, well-insulated houses for more affluent consumers. As for countries with higher income, they have low penetration levels forprefabricated housing, but given its generally lower cost, shorter construction time, and greater energy efficiency demand on prefabricated houses will be stimulated. The Asia/Pacific region accounts for the vast majority of prefabricated housing demand. China alone will account for approximately two-fifths of new global demand generated between 2014 and 2019, even though prefabricated housing has not gained wide public acceptance in China. The majority of prefabricated houses inChinaare temporary units, which are used to house construction workers and for disaster relief housing. In contrast to China, prefabricated housing units in India tend to be "kit homes" used as low-cost housing options. Modular homes are also popular in that country, particularly those constructed from shipping containers. Japanwas a key market for prefabricated housing historically, but the country's prefabricated housing industry will grow at a below global average pace through 2019 as the country's overall residential construction market is not expected to perform well. However, prefabricated housing's share ofnew housing units in Japanhas risen since 2004, and is expected to do so going forward. Moreover, worldwide gains in prefabricated housing demand will be bolstered by an acceleration in theUnited Statesas that country's housing market continues to recover. While US demand for prefabricated housing will advance at double digit annual rates through 2019, prefabricated housing's share of new housing units will decline slightly during this time. Demand for prefabricated housing in theAfrica/Mideast regionis forecast to grow at the most rapid rate of any region, but the level of activity will remain under 200,000 units in 2019. The Middle East & Africa construction and development industry is expected to be the vibrant sector during the forecast period, considering the assured infrastructural development projects. This situation guarantees a market for prefabricated metal products. However, the market has a few constraints such as durability issues and lack of proper financing options for the prefabricated living spaces. More traditional building methods are common throughout the region, particularly in the lower income countries. In general, home buyers in the region continue to prefer site built homes, and prefabricated housing is seen as an inferior product. Product improvements for prefabricated housing will aid modest demand growth through 2019.