PUBLISHER: The Business Research Company | PRODUCT CODE: 1769583
PUBLISHER: The Business Research Company | PRODUCT CODE: 1769583
Multifamily modular and prefabricated housing construction refers to the process of building residential structures designed to accommodate multiple households, such as apartment buildings, duplexes and condominiums, using off-site manufacturing methods, such as modular and prefabricated methods. In this approach, various sections or modules of a building are manufactured off-site in controlled factory environments and then transported to the construction site for assembly. This method contrasts with traditional construction, where all building activities occur on-site.
The multifamily modular and prefabricated housing construction market consists of sales by entities (organizations, sole traders and partnerships) of multifamily modular and prefabricated housing construction services that are primarily utilized by real estate developers, housing authorities and construction firms aiming to provide efficient, cost-effective and scalable residential options. The use of modular and prefabricated methods is particularly prevalent in urban areas facing housing shortages, as well as in regions requiring rapid construction due to population growth or disaster recovery needs.
The global multifamily modular and prefabricated housing construction market was valued at $39,198.66 million in 2019 which grew till 2024 at a compound annual growth rate (CAGR) of more than 5.00%.
Government Incentives
Government incentives fueled the growth of the multifamily modular and prefabricated housing construction market in the historic period. Government incentives support multifamily modular and prefabricated housing construction by reducing development costs through tax credits, grants and streamlined permitting processes. These incentives encourage faster adoption of modular methods to address housing shortages and promote affordable, sustainable urban development. For instance, in January 2025, governments of Canada and Quebec announced a call for projects by the Societe d'habitation du Quebec (SHQ) to fund the construction of highly prefabricated multi-unit housing to respond more quickly to the needs of low- and moderate-income Quebec households. Through this initiative, the first batch of 500 units will be built by 2026 as part of a new phase of the Programme d'habitation abordable Quebec (PHAQ) for the design and construction of prefabricated buildings. These 500 highly prefabricated housing units will be built under the Housing Accelerator Fund (HAF), to which the Government of Canada has contributed $992 million. The Government of Quebec has added $992 million to that amount to support the Strategie quebecoise en habitation. Therefore, government incentives drove the growth of the multifamily modular and prefabricated housing construction market.
Strategic Partnerships Driving Innovation In Multifamily Modular Housing
Major companies operating in the multifamily modular and prefabricated housing construction market are adopting strategic partnerships approach to develop advanced solutions. Strategic partnerships help multifamily modular and prefabricated housing construction companies by combining resources and expertise, enhancing research and development capabilities, expanding market reach and accelerating commercialization, ultimately driving innovation and growth in the multifamily modular and prefabricated housing construction industry. For instance, in April 2025, EVstudio, a US-based multidisciplinary architecture and engineering services firm partnered with Vederra Modular, a US-based manufacturer specializing in affordable, wood-frame volumetric housing. This partnership is to address Colorado's pressing affordable housing shortage by leveraging modular construction's efficiency and scalability. Vederra's Aurora-based facility can produce up to 650,000 square feet of housing annually, offering energy-efficient, net-zero-ready homes that align with the state's sustainability goals. Their expertise in modular manufacturing and deep financial process knowledge make them a strong local partner. EVstudio's collaboration with Vederra aims to streamline the development process, reduce construction timelines and provide cost-effective housing solutions for communities in need.
The global multifamily modular and prefabricated housing construction market is fairly fragmented, with large number of players operating in the market. The top ten competitors in the market made up to 22.40% of the total market in 2023.
Multifamily Modular And Prefabricated Housing Construction Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global multifamily modular and prefabricated housing construction market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for multifamily modular and prefabricated housing construction? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The multifamily modular and prefabricated housing construction market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider multifamily modular and prefabricated housing construction market; and compares it with other markets.