Federal Legislation Promoted Factory Housing
The 21st Century ROAD to Housing Act removed regulatory barriers to boost housing supply nationwide.
Updated on Sept. 21, 2026 in Manufacturing
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Passed in the summer of 2026, the 21st Century ROAD to Housing Act aimed to increase the national housing stock. The law removed mandates for permanent steel frames on manufactured homes to encourage factory-based production.
Why it matters
The legislation serves as a strategic intervention to address the ongoing national housing shortage. By streamlining building regulations, the act seeks to make modular construction a more viable solution for residential demand.
Modular construction offers a 30% to 50% speed advantage over traditional methods, with finished home prices averaging 5% to 10% lower. RISE Modular operates a 150,000-square-foot factory in Owatonna, Minnesota, employing approximately 200 workers.
The players
RISE Modular
This manufacturing company operates a factory in Owatonna, Minnesota, and employs approximately 200 workers.
Department of Housing and Urban Development
This federal agency is tasked with studying the potential benefits of establishing a federal standard building code for modular housing.
The details
Modular units are constructed as three-dimensional modules containing finished interiors within factory environments before being transported and assembled on site. These buildings are required to meet local building codes despite being manufactured off-site.
Timeline
The 21st Century ROAD to Housing Act was signed into law in the summer of 2026.
Market Landscape
This legislation signals a broader shift toward industrializing residential construction to combat systemic supply deficits. The act positions modular manufacturers to compete more directly with traditional developers by lowering regulatory hurdles and production costs.
Homebuyers may see increased availability of housing options as factories ramp up production under the new regulatory framework. Potential residents could benefit from shorter construction timelines and more competitive pricing for new residential units.
The takeaway
The removal of restrictive framing requirements allows manufacturers to adopt more efficient building techniques. These changes effectively lower the entry barrier for factory-built homes in markets across the country.
Further reading
For more on the evolving industrial sector, visit our Manufacturing section.
Live Poll
Do you believe factory-built housing will effectively alleviate the affordable housing crisis in the U.S.?
