Modular Building Institute
Permanent Modular Construction Annual Report 2019 | Modular Building Institute



US Market Overview

Based on data obtained from state modular administrative agencies, production of PMC modules grew to 26,269 units in 2018, up from 23,286 units in 2017 (increase of 12.8 percent), and up from 22,809 units in 2016. This figure represents the number of labeled units only, as not all states have a labelling program.


Region 1 (Maine, Vermont, New Hampshire, Massachusetts, Connecticut, Rhode Island, New York.)

Production in this region increased by 4.2 percent in 2018 to 2,834 modules fabricated, due primarily to an increase of multi-family projects in New York and Massachusetts. Top markets in this region included education, offices, hospitality, and multi-family. While the multi-family sector accounted for 18.5 percent of all modular production in this region, and nearly doubled in terms of number of modules manufactured, it only accounted for 1.4 percent of all multi-family housing units constructed in 2018. Multi-family market in this region is forecasted at $11 billion in 2019, growing to over $14 billion in 2020 and 2021.

This region currently accounts for over 22 percent of U.S. modular hotels, apartments and dormitories and is forecasted to generate approximately $35 billion in new construction activity in 2019, growing to over $40 billion in 2020 and 2021.


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Region 2 (Virginia, West Virginia, Pennsylvania, Maryland, District of Columbia, Delaware, and New Jersey.)

Total production in this region is up 7.1 percent to 2,996 units in 2018, primarily due to a 231 unit increase in hospitality units and apartments. The strongest markets in this region in 2018 were office, education, and multi-family housing. Over 17 percent of all modular units for hospitality and multi-family in the U.S. were in this region.

The multi-family sector will remain strong in this region accounting for about 25 percent of construction activity. This region is forecast to generate approximately $32 billion in construction activity in key modular markets in 2019, growing to $34.8 billion in 2020 and $35.6 billion in 2021.



2020 Modular Construction Industry Reports from the Modular Building Institute

Region 3 (Florida, Georgia, Alabama, Mississippi, North Carolina, South Carolina, and Tennessee.)

Total region is up 32.3 percent to 6,263 units in 2018 due to increases in offices, education, prisons, and multi-family units. The multi-family market, non-existent in 2017, jumped to 316 units in 2018. That sector is expected to remain strong for the near future, forecasted at $16 billion in new activity in 2019, and growing to over $17 billion in 2020 and 2021.

This is a strong region overall with about $58 billion in forecasted activity in 2019. Educational facilities for this region accounting for 27 percent of all units produced in the U.S. Nearly one-fourth of all U.S. production was for projects in the region in 2018.


Region 4 (Louisiana, Texas, Arkansas, New Mexico, Oklahoma.)

Total region is up 14.8 percent to 3,828 units in 2018 with increases in office and education units, each accounting for 17 percent of all U.S. production of these type units.

There was very little multi-family activity in this region in 2018 for the industry. However, that is expected to change in 2019 as at least one new factory is opening in the region and targeting this market. Additionally, MBI successfully lobbied to eliminate the maximum four-story height limit for modular buildings in Texas, which paves the way for taller structures.

The education market is the largest potential opportunity in this region over the next few years, with a strong multi-family market as well. This region is forecasted to generate over $40 billion in key markets in 2019, growing by more than 10 percent to $45 billion by 2021.


Region 5 (Ohio, Kentucky, Indiana, Michigan, Illinois, Wisconsin, Minnesota, Iowa, and Missouri.)

Total region is up 4.1 percent to 3,461 units in 2018 due to increases in offices and project specific increases in hospitality, multi-family, and jails.

Nearly 700 classroom modules were labeled in this region, or about 12 percent of total production in the U.S. The education market is projected to account for eight billion dollars in new construction, remaining a strong opportunity in 2019.

Additionally, the multi-family market adds another eight billion dollars in forecasted opportunities annually for the next several years. Office and healthcare markets are solid opportunities with nearly six billion dollars combined in forecasted activity.


Region 6 (California, Arizona, Nevada, and Utah.)

Total region is up 25.0 percent to 4,200 units in 2018, with prolific increases in hospitality units and apartments primarily in California.

California currently accounts for 55 percent of national hospitality units and 31 percent of national multi-family units.

This is also a strong market for the educational sector, with 841 units labeled for states in this region. This region is forecasted to generate about $10 billion in construction activity in the education sector over the next few years, largely driven by activity in California.

Like many other regions, the multi-family sector offers the greatest opportunity with over $14 billion in activity forecasted in 2019, growing to over $15 billion in 2020 and 2021.

This region is forecasted to generate about $43 billion in construction activity for key modular markets in 2019, and remain relatively consistent in 2020 and 2021.


Region 7 (Oregon, Washington, Idaho, Alaska, and Hawaii.)

Total regional labelled units were essentially flat at 1,095 units in 2018, although apartment units in Washington increased from 12 in 2017 to 173 in 2018. The office and education sectors were the strongest markets for this region accounting for 78 percent of all labeled units in this area.

Within this region, there are potential opportunities for growth in the hospitality and multi-family sectors. Large urban areas such as Seattle and Portland are considering modular solutions to address urgent housing needs. Additionally, at least one modular hotel was under construction in Washington as of this writing.

This region is expected to account for about $15 billion in total construction activity in 2019, growing to $16.4 billion by 2021. Of that amount, one-third is in the multi-family sector, and about one-fourth is in the educational markets.


Region 8 (Colorado, Kansas, Nebraska, South Dakota, North Dakota, Wyoming, and Montana.)

Total region is up 27.8 percent to 1,567 units in 2018 due to increases in office units, education, and multi-family units in Colorado. The multi-family market grew at the highest rate in this region, from a relatively low 32 units in 2017, to 160 units in 2018. Despite the growth, this figure still represents less than one percent of all new multi-family units built in the region.

Like other regions in the U.S., the office and education sectors are the largest markets accounting for nearly 75 percent of all labeled units. Construction of K-12 facilities is expected to hover around $2.5 billion in the region for the next few years, while the office market is expected to be just under one billion dollars annually.

The total forecasted construction activity for this region is about $14 billion and expected to grow slightly to $14.5 billion by 2021. Again, the biggest market opportunity in this region is the multi-family sector at a forecasted $3.6 billion, growing to $4.4 billion by 2020.

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