Factory Built Homes Could Change Everything… Just Not Yet

There is a growing conversation around factory built homes as a solution to America's housing shortage.

But the problem is not building the homes. It is where they go.

Zoning is still the gatekeeper. Even if these homes are cheaper and faster to build, they still need land, permits, and approval. That is where everything slows down.

Then there is perception.

Factory built housing still carries the stigma of older manufactured homes. Whether that is fair or not, it matters. Buyers care about resale value, and that perception will show up in pricing.

Here is where I see real opportunity locally.

ADUs

If factory built construction can lower costs, it could completely change the numbers on adding a unit. Lower build costs mean a faster return, which makes ADUs far more attractive for homeowners and investors across San Diego.

There is also a bigger question around pricing.

If these homes are cheaper to build, do they sell for less? If they do, that could help first time buyers get into newer homes. But it could also create a gap between traditional new construction and factory built homes, especially with appraisals.

That gap will matter.

Real estate is driven by what buyers are willing to pay, not just what it costs to build.

This is a real solution with long term potential.

But it will take zoning changes and a shift in perception before it truly impacts the market.

For now, the biggest opportunity in San Diego is already here, and it is ADUs.

Could an ADU be added on your property? Let's explore the possibilities.