Oct 28, 2025
As home prices and mortgage rates remain elevated amid a nationwide housing shortage, homeownership continues to be out of reach for many Americans.
But there’s hope the crisis may be an opportunity for innovation.
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Modular structures have previously been deployed as temporary office spaces, medical facilities and housing solutions. They’re serviceable and can be constructed quickly, but are rarely viewed as a permanent replacement option.
Some in the industry, however, are looking ahead to a day when modular constructions can be seen as a solution to help meet housing demand.
Building speed and housing need
The median sale price of a U.S. home in September was around $435,000, according to Redfin (1), while Zillow reported in July that the nation’s housing shortage had grown up to 4.7 million units in 2023. (2)
That’s where at least one company says it can step in and help. Colorado-based modular homebuilder Fading West claims it can build homes in half the time and reduce costs up to 20% compared to traditional on-site, stick-built constructions, according to CNBC. (3)
“Our innovation is that we are manufacturers, not construction workers,” Eric Schaefer, the company’s chief business development officer, told the broadcaster.
Instead of outdoor job sites, production occurs indoors at 18 workstations spread across a single factory. Each station handles a specific building phase — including wiring, plumbing, insulation and cabinets. The company says it can construct a 10-ton home in as little as seven days.
Fading West gained some notoriety following the 2023 wildfires that devastated parts of Maui. Per CNBC, the company coordinated with FEMA and architecture firm DXA Studio to deliver 82 modular homes for displaced residents in Lahaina.
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The one- to three-bedroom units were built and shipped in less than five months, reports CNBC. The broadcaster says FEMA reported each unit cost the agency from $165,000 to $227,000. The achievement marked the first time FEMA provided modular housing instead of trailers for temporary housing in disaster relief.
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Can modular housing address the current crisis?
At its core, modular housing offers one thing the market sorely lacks: speed. In a factory setting, durable, customizable homes can be constructed around the clock, free from lighting and weather restrictions.
This may also help control construction costs, however, buyers must beware the effects of land costs and zoning laws on affordability. There’s also the price of transportation and assembly to consider.
According to the National Association of Homebuilders, citing Census Bureau data, the total market share of non-site built modular and panelized single-family homes was just 3%. (4) While they make up a sliver of homes, their potential is being explored. For example, New York State has committed $50 million to create 200 affordable starter homes, including modular constructions.
Interested buyers should conduct research to determine the most cost-effective developer based on their housing needs. Modular builds, after all, should be constructed to suit both an owner’s desires and budget.
“Think of these as Lego blocks,” Schaefer said.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Redfin (1); Zillow (2); CNBC (3); LBM Journal (4)
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Monique Danao is a highly experienced journalist, editor and copywriter with 8 years of expertise in finance and technology. Her work has been featured in leading publications such as Forbes, Decential, 99Designs, Fast Capital 360, Social Media Today and the South China Morning Post.
