Source: EconLog
by Kevin Corcoran
“Modular housing is gaining prominence as a proposed way to increase the housing supply. This is an approach where the majority of home building is done off-site. Factories will construct entire rooms of a house, including all the wiring and plumbing connections built in. At the final construction site, the actual building process consists of the final step of connecting the rooms, plumbing, and so forth, to complete the build. Building in this way is faster and less expensive than traditional home building. … People might think that these companies increase the housing supply by, well, building more housing. But building more housing isn’t an increase in supply, it’s an increase in quantity supplied. An increase in supply means an increase in the capacity to produce something.” (12/04/25)