Could Prefab Modular Housing Finally Take Off in the Bay Area?

Building homes in factories can save money and time – so why has prefabricated housing struggled to gain traction in the U.S.? Scandinavian countries use it for more than 40% of their housing production, whereas in the U.S. it’s less than 4%, according to a 2023 report from consulting firm McKinsey. The Bay Area has produced some big winners and losers in the prefab space. In the past decade alone, several startups launched amid fanfare only to shutter and fail to deliver housing at scale. But, other developers and manufacturers are making a dent in the housing market. Vallejo-based Factory OS has delivered close to 3,000 homes in the last five years and can now build up to 1,000 units per year. We’ll talk about why prefabricated housing remains a promising, but challenging piece of the housing production pie.