Modular Construction Reaches 8.8% U.S. Multifamily Starts Amid Financing Reform Efforts

Modular and prefab housing methods are rapidly gaining traction as innovative solutions to address housing affordability and supply challenges in the U.S. and abroad. In the U.S., modular construction accounted for 8.8% of apartment starts in 2024, driven by cost savings, faster delivery, and waste reduction, with significant support from pending legislation like the ROAD Act aimed at easing financing barriers for modular projects. HUD's 2025 Innovative Housing Showcase will highlight diverse advanced building techniques such as modular homes and 3D-printed structures, demonstrating their potential to meet evolving community needs. Internationally, Australia's prefab housing manufacturer FutureFit is drastically reducing construction times and costs, offering a scalable solution to regional housing shortages by completing homes in weeks rather than months. Additionally, experts in Ghana recommend building expandable homes incrementally as a practical approach for low-income individuals to achieve homeownership sustainably over time. These developments collectively underscore a global shift towards efficient, affordable, and innovative housing construction methods that can be tailored to various economic and geographic contexts.