In a tough real estate market, a century-old housing idea could make a comeback

Modular construction, a century-old concept, might gain popularity with new investor support. While many modular home builders are small and regional, some national companies like Berkshire Hathaway’s Clayton Homes are involved in the market. Although modular homes appeal to homebuyers seeking affordable and sustainable housing, they make up less than 4% of the real estate market. Modular construction is seen as an efficient and sustainable option, generating less waste and disruption compared to traditional construction. It has attracted interest from affordable housing advocates due to rising mortgage rates and home prices. Venture capital firms have also invested in modular construction. The cost of modular construction is generally lower than traditional methods due to economies of scale. Additionally, modular homes offer the advantages of speed of construction and portability. However, modular housing remains less popular in the U.S. compared to other countries. Some environmental experts have doubts about the sustainability claims of modular construction but emphasize the importance of evaluating the sustainability credentials of companies in the industry.