Policy Prescriptions for Modular Housing

Tweaks to building codes, zoning regulations, and financing mechanisms could unlock the potential of modular construction in the United States.

1 minute read

March 15, 2024, 6:00 AM PDT

By Diana Ionescu @aworkoffiction


Two black modular units with glass doors and wood accents in an industrial warehouse.

voffka23 / Adobe Stock

In an article for the Center for American Progress, Michela Zonta highlights the advantages of modular construction, arguing that encouraging more modular home building can reduce construction and housing costs, get homes built faster, and improve safety for workers.

According to Zonta, “If governments engage in coordinated initiatives at all levels to bring modular building to scale, it could also help make housing stock more resilient and sustainable relative to the challenges of climate change.”

While modular construction makes up just 3 percent of U.S. residential housing stock, it represents 45 percent of housing in Finland and Norway. “Several factors have limited the United States’ market share, including financing and payment schedules, building codes and zoning, transportation requirements, labor shortages and costs, and stereotypes.”

The article recommends that governments “Expand financial resources for the modular construction of affordable housing,” standardize building and land use codes for modular building, and incentivize more modular production through tax credits and other mechanisms.

Wednesday, March 13, 2024 in Center for American Progress

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

October 28, 2026 - Zachary Whalen

A car drives through a puddle, making a large splash. Rain pours down.

California plans to bury El Niño’s downpour

If the state plays its cards right, it may be able to store a billion acre-feet of El Niño’s water in aquifers.

October 28, 2026 - Grist

Lake Powell with much of the water evaporated.

Desperate measures: Advocates weigh draining Lake Powell to fill Colorado River

Draining the reservoir could reduce evaporation losses by a couple hundred thousand acre-feet.

October 30, 2026 - Yale Environment 360

Nithya Ramen talks to an older man. She is smiling and wearing a yellow dress. They are both outside.

Los Angeles just elected an urban planner as its mayor

Transportation analysts are optimistic that Raman will be more aggressive in addressing transit issues than Bass.

November 7 - Los Angeles Times

Mamdani behind a microphone, in front of a snowbank

Mamdani’s pied-à-terre tax survives legal challenge

A panel of judges found that the plaintiffs failed to demonstrate injury as a result of New York City's implementation of the tax.

November 6 - CNN

A road in north eastern Nebraska with power lines on either side, and grassy fields.

Eastern Nebraska is running out of electricity

Data centers and electrification are straining eastern Nebraska’s grid, throttling economic development.

November 6 - Grist

FREE Course: Walkable City 1: Why Walkability?

After describing his path towards focusing on walkability as the essence of good planning, Jeff Speck marches through his five principal reasons for making more walkable places.

Reinventing Malls: Planning Alchemy—Turning Gray Fields Into Gold

The course focuses on the opportunities and imperatives that shape reinvention of mall sites.