Can modular housing startups be saved at a critical time for the industry?

2024-01-18T14:08:00-05:00

The notion that factory-built modular homes can serve as the salvation to America's vexing housing crisis has increasingly come under scrutiny, a report summarized recently in Business Insider.

A crippling lack of widespread success for modular housing startups can be attributed to state and federal manufacturing regulatory barriers, a lack of builders’ experience, investors’ overconfidence, local building codes, persistent social stigmas about prefabricated homes, and an overall lack of demand. The inflexibility of the prefabrication process for single-family designs is another factor hindering many businesses as well, according to the article.

Katerra and, more recently, Veev are perhaps the best-known examples. The once $1 billion Bay Area ‘unicorn’ shuttered its U.S. operation in November after constructing 170 units total in 15 years. Veev's failure can be boiled down to a fla...

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Can modular housing startups be saved at a critical time for the industry?