Cover showing two modern houses with identical proportions and shapes, one clad in black siding and the other in white siding.

Prefab the Gap: Off-Site Construction for Affordable Housing on Urban Infill Sites

Aaron Smithson

It is no secret that the US today faces a persistent and pervasive housing crisis. The need for affordable housing has grown more serious and widespread as the number of cost-burdened households—defined as those spending more than 30 percent of their income on housing—has reached record levels among both renters and homeowners. With the cost of materials and labor remaining stubbornly high, an increasing number of community-based organizations (CBOs) and nonprofit developers are turning to off-site construction methods to deliver affordable units more efficiently. Their experiments span both modular and manufactured housing techniques—distinctions that are explained in the “Key Terms” section of this paper—and range in typology from single-family homes to multifamily buildings with dozens of units. In almost all cases, the primary objectives are to compress construction timelines and reduce development costs—goals that several CBOs have achieved through strategic coordination and execution.

The paper assesses which strategies maximize the feasibility, design quality, and cost-saving potential of off-site construction techniques for below-market infill housing. The research process began with a general examination of historical and contemporary applications of off-site construction in the US. Discussions with NeighborWorks staff helped identify modular and manufactured housing recently developed—or in the process of being developed—by member CBOs on infill sites. From that list, as well as the work of two organizations from outside the NeighborWorks network, six projects were identified for site visits and further study. The projects are spread across three states (California, Minnesota, and Rhode Island) and range in type from single-room occupancy units for formerly unhoused residents to single-family for-sale homes on community land trust plots. Drawing on more than thirty conversations with developers, researchers, government officials, architects, manufacturers, and residents, this paper focuses both on key outcomes—total development costs, construction timelines, and design quality—as well as on the processes that precipitated them—team coordination, relationships with key officials, and how certain design decisions were made.