New insight on who is opting for off-site technology, when, and where.

On Trend with Off Site: When & Where Off-Site Housing Technologies Will Emerge

March 1, 2019

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During this year’s International Builders’ Show in Las Vegas, I presented, “When and Where Off-Site Housing Technologies Will Emerge” to members of NAHB’s Building Systems Council (BSC). The presentation included information from a 10-year summary of our Annual Builder Practices Reports and a survey conducted in December 2018 of 300 home builders who were asked about their future intentions for using building components and off-site housing technologies. While I’d provided an overview of December’s survey findings here on our website, the presentation was based on a more in-depth analysis based on builder type, size, and region.

The information was well-received, and I ended up answering questions by BSC members for an hour or so afterward. Some topline findings that garnered the most interested included:

The transition from rafter-framed roofs to trusses will continue to be strong among all types of builders—small and large, and low-end and high-end, and in all regions. The immediate trend is strong now but will taper off within the next five years due to trusses hitting a market saturation point.

Many builders are also in process of making the switch from site-built framing to shop-built open wall panels, particularly multifamily builders and high-volume single-family builders.

While somewhat less intense than open-wall panels, there is an interest in closed-wall panels that will begin to materialize in the coming 5 years.

Pre-assembled floors, or “floor cassettes,” are not in most builders’ current one-year plans, but we expect a big boost of interest developing over the coming 5 years, particularly among large builders to complement their use of open wall panels.

The Midwest seems to be adopting components and off-site housing solutions the most, followed by the West. The South and Northeast seem less ready to adopt components and off-site solutions, with the exception of roof trusses.

Modular home solutions tend to be favored by custom builders and builders in the West.

Pre-cut framing packages seem positioned to satisfy the needs of larger builders, and builders of luxury homes.

This is just a sample of the interesting tidbits that came out of this analysis. There’s much more to explore – check out the complete presentation and let me know what’s most intriguing to you.

From Ed Hudson’s 2019 IBS presentation, “When and Where Off-Site Housing Technologies Will Emerge.”

Interested in this type of comparative market analysis for your building product or system? Or is there a marketing trend topic you’d like us to explore and present to your industry group? Get in touch to let me know.

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