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

Awards

Feb 26, 2026

2026 National Housing Center Award Recipients Announced

The National Housing Center Board of Governors has announced the recipients of the 2026 National Housing Center Awards. The induction and award ceremonies will take place during the 2026 Spring Leadership Meeting at the National Housing Center in Washington, D.C.

Advocacy | Codes and Standards

Feb 25, 2026

House Approves NAHB-Supported Energy Codes Bill

The House today approved the Homeowner Energy Freedom Act, NAHB-supported legislation that would repeal burdensome provisions from the Inflation Reduction Act, including a provision that provides states $1 billion to incentivize the adoption of the 2021 International Energy Conservation Code (IECC).

View all

Latest Economic News

Economics

Feb 25, 2026

Housing’s Share of GDP Declined Further at the End of 2025

Housing’s share of the economy was 16.0% in the fourth quarter of 2025, according to the latest estimates of GDP produced by the Bureau of Economic Analysis. This share is down from 16.1% in the third quarter and is also lower than 16.3% as registered just one year ago.

Economics

Feb 24, 2026

Young Adult Headship Rates in 2024: Cyclical Slip or New Equilibrium?

Reversing the post-pandemic rebound, the headship rates among young adults (the share of the population heading their own households) declined in 2024, according to NAHB’s analysis of the American Community Survey (ACS) data.

Economics

Feb 23, 2026

A 25-Basis-Point Decline in the Mortgage Rate Prices-In 1.42 Million Households

Housing affordability remains a critical challenge nationwide, and mortgage rates continue to play a central role in shaping homebuying power. Although rates have declined from the recent peak of about 7.6% in 2023 to around 6.01% as of February 19,2026, they remain elevated relative to typical levels in the 2010s.