2025 – A Pivotal Year

In 2025, in various reports, it is expected that factory-built housing will gain momentum as a solution for middle- and lower-income families due to its affordability and efficiency. However, challenges remain that could slow widespread adoption.

Shifting Factors:

• Factory-built construction will lower building costs by 20%, and possibly more, making homeownership more accessible. (American Progress)
• Heightened efforts to gain parity within construction codes/zoning that will aim to simplify off-site building, further reducing costs and development time. (Daily Telegraph)
• More state based programs like California’s CalHome are providing funding to help low- and moderate-income homebuyers purchase energy-efficient factory-built homes. (Next Step US)
• Increasingly, communities like Firefly in Lockhart, Texas, are incorporating factory-built homes to increase housing supply and affordability. (Axios)

Challenges:

• Regulatory barriers establish distinct binary requirements in state and local building codes making it difficult to integrate factory-built housing nationwide. However, there are increasing efforts underway to make housing standard for all housing, while meeting community requirements independent of building codes. (Daily Telegraph)
• Mortgage financing has been more difficult to obtain for factory-built homes, though initiatives like Fannie Mae’s and Freddie Mac’s Duty to Serve responses are working to improve access. (FHFA)
• And lingering stereotypes and stigma often presents emotional barriers from historic home products. However, consumer education and successful case studies are positively impacting the shifting public opinion.

Factory-built housing has the potential to be a game-changer for middle- and lower-income families in 2025, but overcoming regulatory, financial, and perception challenges will be crucial for its success. Together and independently we can continue to spread the word and showcase successful development using factory-built housing.