National Spotlight on Modular Construction

Housing Affordability
Published

As the country continues to grapple with housing affordability amid supply-chain challenges and lack of labor, factory-built homes may be more in need than ever. TIME magazine recently spotlighted the benefits of offsite construction — in particular, modular construction — and home owners' growing interest in this product as a potential solution to current industry challenges.

“I think the perfect storm of rising material costs and shortage of labor means that modular’s moment is here,” NAHB member Ken Semler, CEO of Impresa Modular, told the magazine.

Shortened building time frames and more efficient building practices are also attractive, with builders increasingly looking to add modular components to their projects. Time pointed to Home Innovation Research Labs data indicating that builder interest in modular roofing and factory-built wall panels has grown from 15% and 9%, respectively, before the pandemic to 25% and 16% currently.

Modular also offers the opportunity to introduce more workers to home building by training them on specific tasks within the factory, which can help bridge the gap on unfilled job openings.

However, challenges are still present for modular construction, especially in areas that are new to this building method and may still be learning processes for inspections.

“If you’re the first modular into that county,” Semler noted, “you got a lot of explaining to do.”

Read the full TIME article for more details on the modular construction industry and how it can help increase housing supply to alleviate housing affordability challenges.

Builders interested in learning more about modular and other building systems can download NAHB’s Homebuilders Guide to Offsite Construction.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Membership | Leadership Development | Leadership Meetings

Mar 11, 2026

Emerging Leader Grant Opens the Door to National Leadership for More Members

Is a member leader at your HBA planning to attend their first NAHB leadership meeting this spring? Encourage them to apply for the NAHB Emerging Leader Grant. Applications are due April 20.

Advocacy | Legal

Mar 11, 2026

Podcast: Massive Win in Battle Over Federal Energy Code Mandates

On the latest episode of NAHB’s podcast, Housing Developments, CEO Jim Tobin and COO Paul Lopez welcome VP of Legal Advocacy Tom Ward to discuss the impact of the recent court decision on the Department of Housing and Urban Development’s (HUD) and the Department of Agriculture’s (USDA) final determination to impose the 2021 International Energy Conservation Code (IECC) and the 2019 ASHRAE 90.1 standard on certain single-family and multifamily housing programs.

View all

Latest Economic News

Economics

Mar 11, 2026

Inflation Steady Before War

After months of downward trend, inflation held steady at an eight-month low in February. This report does not reflect the recent surge in oil prices due to Iran conflict beginning February 28. Higher oil prices will likely translate into higher gasoline costs and impact other sectors associated with transportation including airline tickets.

Economics

Mar 11, 2026

Single-Family Permits End 2025 on a Soft Note

Single-family permitting softened over the course of 2025 and finished the year weaker than the prior year. After showing some resilience in 2024, permitting activity gradually lost momentum as elevated mortgage rates and ongoing affordability constraints weighed on buyer demand.

Economics

Mar 10, 2026

Existing Home Sales Rose in February

Following the sharp decline last month, existing home sales bounced back in February as housing affordability improved. Lower mortgage rates and moderating home price growth helped pull buyers back to the market. However, tight inventory will likely continue to push home prices higher if demand outpaces supply growth.