Construction of prefabricated homes experienced a decline in 2024, reflecting a broader slowdown in the construction sector. According to data released by the Federal Statistical Office (Destatis), approximately 16,900 residential buildings were completed using prefabricated methods – a decrease of 15.5% compared to the previous year.
The most significant drop was observed in single-family prefabricated homes, decreasing by 14.9% year-on-year, with 14,300 units completed. Construction of duplex prefabricated homes also saw a sharp decline of 24.2%, while residential buildings with three or more units in prefabricated construction fell by 4.9%. A notable exception was the construction of student housing, which saw a substantial increase of 53.8%.
The slowdown was even more pronounced in conventionally built homes, with new construction decreasing by 23.0% to 59,200 units in 2024. Prefabricated homes accounted for over one in five (22.2%) of all completed residential buildings last year, a figure that suggests the sector is being increasingly considered as a potentially more cost-effective and time-saving alternative amidst rising construction expenses.
The number of single-family homes built via prefabricated methods represents the lowest level in a decade, mirroring a wider trend in the residential construction market. Conventionally built single-family homes also experienced a marked decrease, reaching a post-reunification low of approximately 40,100 units – a 24.3% reduction from 2023.
Construction of multi-family dwellings also felt the impact of the weakening construction climate. Prefabricated duplex homes fell by 24.2% and buildings with three or more units decreased by 4.9%. Conventionally built duplex and multi-family homes also saw significant declines.
In a contrast to the general downward trend, the construction of prefabricated student housing increased substantially.
The majority of those initiating prefabricated housing projects in 2024 were private households (90.9%), followed by companies (7.9%) and public sector entities (1.1%).
Building costs for prefabricated single-family homes rose by 0.5% in 2024 compared to the previous year’s average. This contrasts with a 2.9% increase in building costs for conventionally built homes. Over the past decade, construction costs for prefabricated single-family homes have risen by 62.2%, with conventionally built homes experiencing a 67.5% increase.