As housing costs rise and traditional construction becomes slower and more expensive, many community-based organizations (CBOs) are turning to off-site construction as a practical alternative. A new paper from a 2024 Gramlich Fellow reviews six developments where CBOs used modular or manufactured building methods to create affordable housing, ranging from small single-room occupancy projects to single-family homes on community land trust lots.
The research draws on conversations with developers, architects, manufacturers, residents, and local officials. Across most of the projects studied, off-site construction either shortened the overall building timeline, lowered total development costs, or achieved both. Although factory-built housing is often assumed to be rigid or repetitive in design, the case studies show a surprisingly wide range of architectural styles. Several CBOs and architects were able to tailor buildings to their neighborhood context, using different cladding options, roof pitches, and layouts that blend into surrounding blocks.
Still, the report makes clear that off-site construction does not automatically produce savings. The projects that succeeded were those where teams aligned early and understood how modular or manufactured housing fit the CBO’s mission. Many organizations were focused on responding to urgent local housing needs, reducing environmental impacts, or strengthening community ties—goals that off-site methods can support when used intentionally.
Some Site Projects Require Careful Logistics Planning
Early coordination among developers, architects, general contractors, and manufacturers was another consistent theme. Because modular and manufactured construction relies on precise measurements and careful sequencing, late design changes can undermine potential cost and time benefits. Several participants noted that scattered-site projects require especially careful logistics planning, from transporting units to staging materials.
Local policy environment also played a major role. Some CBOs benefited from supportive officials who encouraged off-site techniques. Others had to spend time educating policymakers about the advantages of modular and manufactured housing and pushing for clearer rules or more flexible lending practices.
Taken together, the findings show that while off-site construction is not a universal solution to high building costs, it can meaningfully expand affordable housing production under the right conditions. With thoughtful planning, strong team coordination, and a local regulatory structure that understands the method, factory-built housing can help CBOs deliver high-quality, well-designed homes faster and at a lower price.
