Can Modular Housing Help Address the Housing Affordability Crisis?
Two of the benefits frequently touted for off-site construction are its speed and efficiency. By using less time and less waste, industry professionals estimate it can save 10% to 15% on construction projects.
This seems like a natural fit for producing more affordable housing options for prospective home owners, but off-site construction may not always be at the forefront of builders' minds. So how can it be more widely adopted to help address the nation's housing affordability crisis?
Eric Holt, assistant professor at the University of Denver, and his team have been exploring how off-site construction fits into affordable housing. Using a HELP Grant from the National Housing Endowment, the team specifically planned to look at how framing methodologies tie into affordable housing and modular housing.
"We initially were going to watch framers put up houses using the different methodologies, but the timing of that was in March as everything fell apart," Holt noted. So instead, the team analyzed data from other sources — including NAHB, the Structural Insulated Panel Association (SIPA) and suppliers in the pre-cut market — to compile a report on the role modular and panelized construction can play in affordable housing.
Holt will present the findings of this report during a Building Systems Week webinar, titled "The Impact of Modular & Panelized Construction on Affordable Housing," on Wednesday, Sept. 23, at 2 p.m. ET.
He will also share the work his team has been doing to create a home builder's guide to off-site construction to help builders navigate the switch from stick-built homes to buildings systems.
"Research shows that you can become more efficient, faster, with off-site construction, and even potentially save money," Holt observed. "But it requires a cultural shift within the company, the supply chain and even the business model."
Design, in particular, can be challenging, Holt noted, as not everything from a stick-built environment necessarily translates to off-site construction. Labor is still a challenge in the factory, too, but companies such as Entekra — a Building Systems Council member and 2020 Construction & Design Winner of the Ivory Prize, which focuses on scalable solutions to housing affordability — are looking to close that divide through the use of technology.
"There's a direct correlation between the cost of something and the lack of productivity," Gerry McCaughey, CEO of Entekra, noted for the Ivory Prize awards as the primary cause of escalating home prices. "There is so little technology being utilized inside the construction industry despite the fact that we're now in 2020. And yet the technology exists to build a house before it's ever built, which is what we do."
Holt questioned if a more production, technology-oriented mindset could help builders understand the value of off-site construction, and how it can benefit their business and productivity. He looks forward to receiving webinar participants' feedback to help inform future research.
"We really do want the industry's feedback on this and what next questions do we need to answer for the industry," Holt shared. "What are the other challenges they're experiencing out there? Why aren't they moving to offsite construction? Is it a stigma about modular getting confused with manufactured housing, or a supply issue?"
Register today to reserve your seat. Visit nahb.org for more information on Building Systems Week.
Latest from NAHBNow
Oct 09, 2025
3 Ways to Utilize Construction Site Surroundings to Optimize DesignHome design isn’t just about color swatches and backsplashes. Architecturally, building professionals can look toward climate responsive design and ambient design, which both involve using the elements around a home to the client’s advantage.
Oct 09, 2025
Remodeling Market Sentiment Improves in Third QuarterNAHB released its NAHB/Westlake Royal Remodeling Market Index (RMI) for the third quarter, posting a reading of 60, up one point compared to the previous quarter. With the reading of 60, the RMI remains solidly in positive territory above 50, but lower than it had been at any time from 2021 through 2024.
Latest Economic News
Oct 07, 2025
Minority-Owned Residential Building Firms Continue to RiseThe share of minority-owned new residential builders and remodelers has more than doubled since the Great Recession, with noticeable gains from 2017 to 2022. Nevertheless, when compared to the overall U.S. population, minority-owned firms continue to be underrepresented within both housing sectors.
Oct 06, 2025
Shorter Apartment Construction Time in 2024The average time needed to complete construction of a multifamily building after obtaining authorization edged down in 2024, according to the 2024 Survey of Construction (SOC) from the Census Bureau. On average, it took 19.6 months from permit to completion, about 0.3 months shorter than in 2023.
Oct 03, 2025
Supply-Side Cost Pressures Drove Housing as Inflation Leader in 2024Though the rate of inflation peaked in June 2022, consumer prices continued to increase throughout 2023 and 2024 as inflation drove further price growth, according to 2024 CPI review from the Bureau of Labor Statistics.