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

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