Can Offsite Housing Solve the Housing Affordability Crisis?

As the country’s housing market continues to face uncertainty and unaffordability with home prices and interest rates pushing sales to some of their lowest levels, the industry is looking for solutions. Offsite construction – a method in which components are planned, designed, fabricated in a factory setting and then transported and assembled onsite – is something more community-based organizations (CBOs) are turning to as a solution to the housing affordability crisis.

According to research from Harvard University’s Joint Center for Housing Studies (JCHS), offsite housing offers these CBOs a quicker and less costly way to build quality affordable residential housing. The common misconception that this method – also known as “factory-built housing” – has inflexible design options is proven wrong by this research. Factory-built housing comes in a wide array of styles and can be highly adaptable, making it an appropriate option for building more affordable neighborhoods.

Now while offsite construction often saves time and money, it is not a guarantee. Before opting for this method, developer should take certain steps.

Offsite Housing Considerations Outlined by JCHS

Understand how offsite housing can advance a CBO’s mission.

If an organization is looking to meet urgent housing needs, minimize environmental impact, and maintain strong community relationships, factory-built housing has its advantages.

Be intentional about location and methodology when employing offsite construction.

Developers must take a project’s architectural context, manufacturer availability, transport and assembly logistics, and local regulatory environment all into account before committing to offsite housing and understand it’s not a one-size-fits-all approach.

Organize development teams from the start.

Collaboration must start early to avoid as many setbacks and costly revisions as possible. In the research, CBOs stressed how important it is to bring architects and manufacturers on simultaneously so teams can be precise and reduce mistakes later in the process.

Explore customization and design options. 

Offsite construction offers an array of design options; many of the designers and developers that were interviewed were initially surprised by the level of design expression offered and encouraged CBOs and architects to learn from the manufacturers’ and installers’ expertise.

Engage, educate and share.

Some CBOs had to educate their local government officials and advocate for fairer regulatory environments and more responsive lending practices for modular construction. Sharing information among development teams can also lead to a more mature and diverse offsite construction industry. As the industry grows, increased institutional familiarity and regulatory acceptance, offsite construction methods are more likely to have a substantial and sustained impact on housing affordability.

The NAHB Offsite Video Series delves into various offsite construction techniques that offer a flexible route to affordable housing. NAHB members can subscribe and access the complete video library for free.