How To Boost Modular Home Construction

Modular housing can be built faster and at lower cost than traditional homes, but the industry is stymied by regulatory and other barriers.

1 minute read

February 7, 2024, 12:00 PM PST

By Diana Ionescu @aworkoffiction


Modular home under construction with crane dropping in components.

lawcain / Adobe Stock

A report published by the Center for American Progress outlines the benefits of modular home construction and how, with some support, the industry could help bring more housing to market in the United States. “Modular homes are constructed off-site, but in contrast to manufactured housing, they are assembled on-site and attached to a permanent foundation,” the report explains.

“Modular construction has many potential benefits, including cost savings, shorter development timelines, and an overall safer and more efficient development process.” However, modular construction is growing slowly in the United States due to barriers that include “financing and payment schedules; scarcity of manufacturers; lack of consistency in local jurisdictions’ building codes, zoning regulations, and state transportation requirements; and labor shortage.”

The report makes several suggestions for boosting modular building. These include:

  • Expand financial resources for the modular construction of affordable housing
  • Standardize building codes and land use to facilitate production and project approvals
  • Support a more diverse workforce and higher wages in modular construction jobs
  • Expand the capacity of modular building

The report concludes that “Modular building, if brought to scale, has the potential to reduce construction costs and make it more affordable to build new homes, especially in areas experiencing severe affordable housing shortages.”

Tuesday, February 6, 2024 in Center for American Progress

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

The mayor of Baltimore speaks into a microphone in front of a rally for more state transportation funding from Maryland.

‘Going backwards:’ Baltimore mayor, students rally against state's transit funding plan

Maryland's proposed six-year plan provides no funding for Baltimore’s BMORE bus program and reduces its road maintenance funding.

October 2, 2026 - Baltimore Sun

A rendering of the waterfront development, which shows a lit-up stage by the waterfront and people walking about.

Detroit to transform waterfront with $2.2 billion investment

Developers will convert about 18 acres of unused parking lot space into civic spaces.

October 2, 2026 - ABC 7

A crane lifts a manufactured house, with is rectangular and does not yet have a roof.

HUD modernizes 50-year-old manufactured housing framework

The Next Generation Manufactured Housing Action Plan establishes new energy-efficiency standards for manufactured homes, and new guidelines for anchoring them.

October 8, 2026 - Boston Real Estate Times

An unfinished piece of California’s high-speed rail project in Fresno.

After $600,000 wasted, CA high-speed rail board limits CEO’s power

Ian Choudri will no longer be able to sign, change or manage contracts.

October 13 - Cal Matters

A lithium plant in California. Pollution billows into the sky.

Lithium mines leech water from surrounding communities. Soon, they’ll run dry

Researchers concluded that most lithium mines won't have enough water to meet industry demands by 2050.

October 13 - Inside Climate News

A person in a bright green jacket stares down a culvert, a pipe meant to divert rainwater from roads.

El Niño takes lives, infrastructure as U.S. storm systems prove ill-prepared

About two-thirds of America's culverts are in states with outdated design standards.

October 13 - The Washington Post