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Factory-built housing hasn’t taken off in California yet, but this year might be different
California lawmakers aim to cut housing costs by 10-30% and boost supply through modular construction as part of 2026 housing innovation efforts, backed by research from UC Berkeley.
- Earlier this month, Assemblymember Buffy Wicks organized one select committee hearing and aims to make 2026 the 'Year of the Housing Factory' with bills and a white paper, while Drake Avenue Apartments at 825 Drake Avenue in Marin City were under construction on Feb. 7, 2026.
- Last year, California legislators believe off-site construction can cut timelines by 10 to 30 percent and reduce hard costs by 10 to 25% under the right conditions, according to Terner Center analysis.
- Factories are hugely expensive and must run continuously at full capacity, while real-estate investors and traditional lenders remain wary, so The Accelerator Fund offers short-term, low-cost loans to developers.
- Policymakers are debating whether public policy and taxpayer money should propel off-site construction from niche use to a regular industry feature, including a taxpayer-backed insurance proposal to reduce early-stage risk.
- Past attempts such as Operation Breakthrough ran out of money and Katerra's 2021 bankruptcy still loom, while Sweden’s factory-built housing share fuels optimism; long-term success hinges on solving Bay Area construction costs, financing, and regulatory challenges.
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Associated Press News+20 Reposted by 20 other sources
Factory-built housing hasn’t taken off in California yet, but this year might be different
As the first home rolled off the factory floor in Kalamazoo, Michigan — “like a boxcar with picture windows,” according to a journalist on the scene — the Secretary of Housing and Urban Development proclaimed it “the coming of a real revolution in housing.”
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Coverage Details
Total News Sources22
Leaning Left5Leaning Right1Center2Last UpdatedBias Distribution63% Left
Bias Distribution
- 63% of the sources lean Left
63% Left
L 63%
C 25%
12%
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