Have you paid attention to the housing market lately? Ask any Millennial looking to break away from renting—the market to buy is abysmal. The New York Times even goes as far as to say that it’s the worst it’s ever been.  You can blame Covid, the government, or whatever else seems to be divisive these days, but one thing is for sure; it sucks.  

Houses on the market aren’t selling at current prices and new homes aren’t being built quickly or efficiently enough for new communities to make a difference. But through the chaos of this industry where projects finish over budget and past schedule, there is a solution—Prefabricated houses. 

What Are Prefabricated Houses?   

Prefab homes sound like something out of a sci-fi movie, but they’re becoming more popular every year. Essentially the term “prefabricated” describes a home that is primarily manufactured in advance off-site, then delivered and assembled on site. This innovative approach to housing could be the key to solving the global housing crisis and transforming how we think about home construction.  

The beauty of this method lies in its efficiency and cost-effectiveness. With prefabrication, the construction process is typically completed in about half the time it takes for traditional building methods and at a fraction of the cost.  

Breaking the Stigma 

Historically, prefabs have been predominantly associated with low-quality, high-volume housing, meant to exist temporarily. These were first introduced in Europe as a quick and inexpensive way to replace homes that had been destroyed by bombs during WWII. And while those prefabs were only intended to be a quick fix, (contributing to the continued stigma) this style of home has come a long way since the 1940s. 

Those wartime homes were only estimated to last up to 10 years, but many still stand today as functional houses—a testament to their place in the market. If those hastily built replacement homes could last 80 years with only the materials available back then, imagine what we can do with modern technology. 

 Game Changing Innovation 

A lot has changed since World War 2—for one, we have computers that fit in our pockets now. Life has gotten more fast-paced as the tech markets have grown, leading to innovations that we as a society had never imagined could be possible. Sure, we don’t have flying cars like the old movies told us we would, but isn’t a prefabricated home just as fantastical?  

Standing as an example of the “future of housing”, prefabricated homes have many layers of innovation, including: 

• Sustainable materials and reducing carbon footprints. 

Prefab homes are all 3D-printed in sections, using recycled material which is 100% reusable. The manufacturers of these homes are utilizing a new material known as Light Stone, which is a concrete alternative with four times more flexible strength, 30% less weight, and produces less carbon dioxide than standard building materials. Most prefab homes build in California only produce 1% of waste during construction, according to the California Energy Commision.  

As a global community, humanity has become increasingly aware of their carbon footprint and the impact that we have on the environment. Sustainable homes reduce a homeowner’s carbon footprint by shifting away from wood-based, high-carbon products and practices. This means less deforestation for the sake of gathering materials.  

Traditional construction produces almost two times more carbon dioxide than a manufactured home, making the latter a clearly better choice for the environment.  

• 2X Faster Construction 

Sustainability doesn’t exclusively revolve around the materials used. This can also refer to the efficient use of labor. By using a kit system and practicing offsite manufacturing, a prefabricated home cuts the standard building time in half. At just shy of 25 weeks, this process is not only beneficial for the real estate market, but for home buyers as well. Buyers of prefab houses would be able to move into these homes faster than they would if they were relying on traditional building methods. 

We covered this in a previous blog, (check it out here) but there is a massive shortage of construction workers, which is only expected to continue over the next ten years. Approximately 80% of production is automated in a factory-controlled environment, which increases speed compared to traditional construction projects.

• 20% Cheaper 

Prefabricated homes are at the forefront of affordability. Traditional homebuilding can be interrupted by weather delays, labor costs, and unexpected material price hikes. Prefabrication minimizes these issues because everything is pre-built in a controlled environment, reducing costs and time overruns.  

This cost-efficiency makes home-ownership more accessible for people who otherwise might struggle in the traditional landscape. As an example, 87% of Americans between the ages of 23 and 35 have said that they can’t afford a home and don’t see home-ownership as an option in the current economy. One person in the r/finance says, “I’ve had two jobs that pay twice the minimum wage and work me over 60 hours a week for 5 years now and I still don’t have enough for a down payment on a house. What the heck am I supposed to do?” 

Imagine a scenario where affordable housing is not just a dream but an achievable reality for so many people—prefabricated homes could make that possible. 

• Increased Durability and Product Life  

The materials used in the construction of these revolutionary homes are not just eco-friendly, but also made to last longer than a traditional home. Most prefabricated homes on the market are built without any wooden frames or bases, making them fireproof, termite free, and mold proof. Their proprietary walls are also constructed with non-flammable material, making them ideal in extreme weather and natural disasters.  

Inside the walls, a structural pattern is lined with foam, which improves heat retention beyond what you’d get from typical wood walls with foam or fiberglass insulation. As I mentioned earlier, there are a ton of prefab homes still standing in Europe that were only expected to last ten years. Now, the average lifespan of a prefabricated home is close to 100 years.  

The Impact on Construction Workers 

There is discussion in the construction and electrical landscapes about how these innovative homes can affect the job market for built environment professionals. Some worry that they will be losing their jobs in place of modular housing. I’ve learned that this is far from true.  

In the same way that AI will never fully replace an artist or an author, prefabrication won’t take jobs from BEPs. In fact, prefabricated housing is a game-changer for built professions. One benefit is that the prefab industry is booming right now, which means that there is a surge in job opportunities. The shift from traditional to prefabricated construction opens up new roles in factory settings, design, logistics, and assembly. It’s a chance for workers to develop new skills and be part of a cutting-edge movement in the housing sector. 

Another (and probably more beneficial) change is that the work environment in prefabrication facilities is generally far less physically demanding compared to traditional construction sites. With less exposure to harsh weather conditions and fewer manual labor tasks, workers experience fewer physical strains and health risks.  

This can lead to a better quality of life and more sustainable careers in the long run. Imagine trading the grueling, backbreaking work of traditional construction for a more controlled and ergonomic workspace.  

However, the shift also comes with its own set of challenges. The transition to prefabrication might require retraining and adaptation, which could be daunting for some. If you’re working in the traditional construction landscape and are used to those methods, you may need to learn new skills and techniques to keep up with the evolving industry.  

I do think that the industry recognizes this shift and is working to support this transition with adequate training programs and resources to ensure a smooth shift. A general foreman working in Louisville’s modular housing facility says, “We’ve been at the front of this industry for about 5 years now, just waiting for everyone else to catch up and see how much better these are when they’re done properly. We were once a crew of 20, working in the traditional construction field but now we’re pushing 50 at the factory.” 

A Brighter Future with Prefabricated Homes 

Change can be intimidating, especially when it comes to something like the housing market. But we’ve been watching it crash and burn for the last 20 years and honestly, I’m ready for some good news. These homes represent a real step forward in bringing back affordable housing. They promise faster construction times, lower costs, and a smaller environmental footprint—three factors that can address some of the most pressing issues in the housing market today.  

Unlike interior design trends that shift with the times, it’s clear that prefabricated homes are not just a passing fad.  Rather, they’re a shift in how we approach construction and sustainability. In a few years, you’re going to open Zillow and be pleasantly surprised at how affordable houses are becoming, thanks to prefabrication.