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An Exploratory Study of Factory-Built Homes and Their Implications for Affordability: Final Report


Authors: Murdoch, James     Nisar, Hiren     Brahmachari, Meghna     Papa, Francesca     2M Research    

Report Acceptance Date: March 2022 (113 pages)

Posted Date: March 21, 2023

Factory-built homes are produced in a climate-controlled factory, mostly using standardized, repeatable design, and then assembled on-site. This study examines current trends in the factory-built housing industry, with primary emphasis on modular homes, to understand manufacturing and construction processes, the development of innovative building materials, consumer education, and affordable housing finance. A literature review, engagement with industry experts, and manufacturer case studies provide ample evidence that factory-built housing offers enhanced opportunities for affordable homeownership. The report offers market-driven and policy-specific recommendations for the industry and federal policymakers regarding the affordability potential of factory-built housing, the ongoing challenge of transportation costs, the need for educating market participants, and the need for continuing research on benefits and risks as well as production efficiencies including automation and robotics.

Issue Briefs:

document icon  Factory-Built Versus Site-Built Multifamily Housing: Benefits and Challenges

document icon  Financing Multifamily Factory-Built Housing

document icon  Single-Family Site-Built, HUD Code Manufactured, and Factory-Built Homes


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