As the nation grapples with an affordable housing crisis and increasing climate-related disasters, factory-built homes must be at the forefront of policy discussions and community development efforts. A recent Urban Institute report on climate-resilient factroy-built housing highlights the unique benefits and challenges of factory-built homes, making a compelling case for their inclusion in affordable housing solutions that prioritize long-term sustainability and resilience. Key findings from the report include:
Factory-Built Housing is a Vital Yet Overlooked Component of Affordable and Climate-Resilient Housing
- Factory-built homes provide housing for approximately 18 million Americans, yet they remain largely invisible in federal and local housing policy discussions.
- The HUD code ensures quality and durability, allowing these homes to be built more efficiently and cost-effectively than traditional site-built housing.
- Despite their affordability and efficiency, restrictive zoning laws and outdated perceptions continue to limit the expansion of factory-built housing in many communities.
- Climate resilience must be an integral part of the discussion, ensuring that factory-built homes can withstand extreme weather events and contribute to sustainable development.
Factory-Built Homes Can Be a Key Solution to the Housing Supply and Climate Resilience Crisis
- Factory-built homes are significantly more affordable than site-built homes, often costing between 35% to 73% less per square foot.
- The streamlined production process dramatically reduces construction time—on average, 31.5 days for a factory-built home versus 321 days for a site-built home.
- New federal regulations now allow the production of factory-built duplexes, triplexes, and quadplexes, making these homes viable for urban infill projects.
- Climate-conscious design, including energy-efficient materials and construction techniques, can ensure that factory-built homes contribute to the creation of resilient communities prepared for future climate challenges.
Climate Resilience Must Be a Priority for Factory-Built Housing
- Factory-built housing is often placed in areas vulnerable to climate hazards such as hurricanes, floods, and wildfires.
- Older, pre-1976 mobile homes are particularly susceptible to damage due to outdated construction standards.
- There is an urgent need for investments in retrofitting and upgrading existing factory-built homes to improve resilience.
- Future development must incorporate strategies to mitigate climate risks, such as elevated foundations, reinforced structures, and improved insulation.
Federal and Local Policies Must Support Factory-Built Housing Integration for Climate-Resilient Development
- Policymakers should remove regulatory barriers, such as zoning restrictions that relegate factory-built homes to less desirable locations.
- Federal agencies should invest in research and data collection to better understand the role of factory-built homes in climate resilience.
- Cross-agency collaboration, including FEMA, HUD, and the USDA, could drive policies that incorporate factory-built homes into disaster recovery and mitigation strategies.
- Incentives should be provided for sustainable infrastructure and energy-efficient designs to ensure the long-term viability of factory-built housing in the face of climate change.
Why Factory-Built Homes Must Be Included in Climate-Resilient Community Development Plans
Next Step has long advocated for the inclusion of factory-built housing in affordable housing strategies. The report underscores the need for local governments, developers, and housing advocates to embrace factory-built homes as a scalable, cost-effective solution to the housing crisis. By integrating these homes into community development plans, we can:
- Expand access to high-quality, affordable homeownership.
- Reduce construction costs and development timelines.
- Improve housing resilience against climate disasters and extreme weather conditions.
- Promote equitable housing opportunities in urban and rural communities alike.
- Support sustainability efforts by reducing the environmental footprint of new housing construction.
Moving Forward: A Call to Action for Climate-Resilient Communities
Factory-built housing has the potential to reshape the affordable housing landscape while strengthening climate resilience. However, this requires commitment from policymakers, developers, and advocates to support its growth. We urge local governments to modernize zoning laws, financial institutions to expand financing options, and community leaders to recognize the essential role of factory-built homes in creating sustainable, climate-resilient neighborhoods.
At Next Step, we remain committed to advancing the conversation on factory-built housing and working with partners to drive meaningful policy changes. The time to act is now—let’s ensure that factory-built homes are a central part of the solution to our nation’s housing, climate, and community resilience challenges.
