|By Marketwire .||
|March 13, 2013 04:08 AM EDT||
Prefabricated housing shipments are forecast to rise 13.6 percent annually through 2017 to 140,000 units, a vast improvement from the declines of the 2007-2012 period. Prefabricated housing will benefit from a rebound in housing starts. Both types of prefabricated housing declined steadily from 2002 on, and were hit hard by the housing market collapse that began in 2007. As the housing market and general economy recover, demand for prefabricated housing is expected to rise along with total single-family housing starts. Despite the promise of some reduction in construction costs, these products have had limited market penetration, in part because of consumers' familiarity with traditional construction practices, or in the case of manufactured housing, some stigma attached to the product itself. These and other trends are presented in Prefabricated Housing, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
Overall, shipments of manufactured housing will reach 90,000 units in 2017.Demand for manufactured housing is concentrated in rural areas and in certain segments of the population -- particularly lower income groups such as young, first time home buyers and those over 55, such as retirees on a fixed income. Expected growth in these populations will boost manufactured housing demand. However, manufactured housing's market share is projected to drop from that of 2012 as the economy continues to expand and conventional mortgages become easier to obtain, and as new regulations make chattel loans (commonly used for manufactured housing) more difficult to secure.
For other prefabricated housing, demand is more evenly spread throughout geographical areas and the segments of the population. As such, demand is less affected by trends in certain areas or populations, and will more closely track demand for overall single-family housing. Therefore, market shares for other prefabricated housing types will be little changed, and demand increases will be similar to those for single-family housing overall.
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About Freedonia Group Inc
The Freedonia Group is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, market share information and profiles of the leading industry players.
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