Modular Home Trends in Today's Housing Market

Unlimited design options and flexibility are available with today’s modular homes. These homes are not only aesthetically appealing but are easier to heat, cool and maintain. As people become more concerned about the environment, many seek to reduce their environmental impact and carbon footprint. Modular housing gives consumer’s unparalleled choices in design and function, while remaining environmentally friendly. Modular homes can be constructed with a wood or steel frame. Here’s a look at the similarities and differences between steel frame construction and wood frame construction.

Over 50 years ago (after WWII,) steel framing became popular when returning GI’s needed homes for their families. During the last 20 years, the housing market has shown a renewed interest in steel framing. The same techniques that were used with wood were used with steel, and construction costs were about the same until recently. In the last few years wood has become more expensive and steel more affordable. Wood and steel are both highly recyclable, with wood products (including paper and paper board,) being recycled at a rate of 65 percent. Steel products have an overall recycling rate of 63 percent.

Although the same principles of building with wood apply to steel construction, they use different types of fasteners. Wood frames are nailed together while steel frames are fastened with sheet metal screws. Energy use is slightly higher in steel frame buildings because metal transfers cold and heat more readily than wood. However, steel framing is lighter yet stronger and more resistant to earthquakes, fire and pests. Ceiling joists made of steel can cover longer distances than wooden ones, but wood is easier to cut and install.

Because of the inherent properties of steel, modular housing built with steel frame construction is generally completed faster than housing built with wood. However, it is easier and less expensive to incorporate design details like higher pitched roofs, overhangs, interesting roof lines and dormers on wood frame buildings. The overall material costs for a steel frame building can be substantially more than wood frame costs but insurance and maintenance costs may be lower.

Choose a home in a style that you and your family will love, using either steel or wood frame construction. In today’s market, modular homes suit many tastes with their limitless design options, flexibility and affordability. Building a home is easy and fun when choices include the most contemporary and unique options.

Percentage of Modular Homes Holds Steady over the past 10 Years

Modular construction of 1 & 2 family residences has remained steady at about 2% of overall new home starts for the last ten years. 

According to the U.S. Department of Commerce, new single family residential construction houses completed have dropped from 1,218,000 homes in 2007 to 447,000 in 2011.  Modular homes accounted for an average of 2.4% of new single family houses completed annually, or 31,000 dropping to about 10,000 over that same period.

For March 2013, the US Department of Commerce reports single family construction sales at 417,000 annually with a median sales price of $279,900.  At 2.4% the modular industry accounts for about 8,300 houses.

The percent of modular home starts varies significantly by region with the Northeast being the strongest at 6.8% of all new housing starts, followed by the Midwest at 3.9%; the south at 1.3% and finally the west at less than 0.5%.

Region	Total	Northeast	Midwest	South	West
Number	417,000	41,000	51,000	215,000	110,000
Total Modular	8,300	2,800	2,000	2,800	600

Based on this data, the single family modular home industry is approximately $2.3 billion in the United States for year end 2012.