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Across the US, homeownership is becoming increasingly inaccessible for low- and moderate-income households. While land costs are a driving force in this trend, construction costs carry some of the blame as well. However, “Comparison of the Costs of Manufactured and Site-Built Housing,” a new paper I co-authored with Chris Herbert and James Shen finds that manufactured housing offers a potential solution to rising construction costs, with a significant cost advantage over site-built homes. Given this cost advantage, we suggest that housing advocates and policymakers take steps to promote more widespread adoption of manufactured housing as...
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The most important revelation of this article is that Harvard University is now researching the “trailer” industry. Sadly, this article is not up to Ivy-League standards. I’m sorry, but if CrossMod (the new mobile home/modular concept) is only 27% cheaper than stick built, it’s never going to sell. Most people have a stigma against mobile homes that is far bigger than just 27%. If CrossMod was maybe 50% less, it might have a chance, but I’m still not even convinced then.