Urban Infill a New Target for Modular Homebuilders

Builders are focusing on infill as a new area for modular homes, which have been coming down in size in recent years.

"In fact, over the past seven years, modular has risen above 3% of the total only once, at 3.6% in 2009 (see chart below). In markets where tract building dominates or where labor is cheap, modular "doesn't make sense for a lot of builders," observes Dan Goodin, vice president of sales and marketing for Nationwide Homes, which has been producing modular homes in Martinsville, Va., for 52 years.

Still, Goodin remains convinced that housing trends and buyer demand are shifting toward a greater acceptance of modular, particularly for rural scattered lots (where it would otherwise be expensive to send subcontractors over long stretches to complete a stick-built house) and urban infill, where the speed at which factory-built homes can be assembled at jobsites is less disruptive to the surrounding neighborhood."