Factory-built homes – Answer to affordable housing?
By : J. David Chapman/November 15, 2024
One of the topics at the Innovation in Construction Symposium this year, hosted by the University of Central Oklahoma Real Estate Program, was factory-built homes. Our panel expert on the topic was Lance Windel of LW Development. Lance probably has more experience in the area of factory-built homes and home components than anyone else in the state of Oklahoma.
Factory-built homes today share a similar legacy with the iconic Sears Roebuck kit homes but leverage modern technology for greater efficiency, quality, and customization. Unlike the early 20th-century kits that required homeowners to self-assemble, contemporary manufactured and modular homes are largely assembled in climate-controlled factories, improving quality control. These homes typically arrive nearly complete, reducing time, waste, and labor costs on-site. Innovations in this sector include modular construction, 3D printing, and customizable panel systems, which streamline building processes and can offer eco-friendly options, meeting today's demand for sustainable and affordable housing solutions.
Windel has been building homes in rural communities for the affordable/workforce housing market for years. This experience convinced him that using volumetric modular construction was the key to profitability in his market segment. Windel purchased an old railroad car factory in OKC and converted it into a modular manufacturing facility. The building is especially well-suited to move components and modules having large overhead cranes.
I toured the facility and was surprised and impressed with the engineering and ingenuity of Windel and his staff. Instead of spending big money to outfit the space, his team hand-built wooden tables and used an industrial skate dolly and wooden jigs to mark and measure materials, thus keeping the company’s capital investment to a minimum while ensuring quality standards.
He has learned with every unit built and simplified and standardized his component designs focusing on reducing material waste. He added a printer to mark lumber and drywall for more precise cutting to further decrease waste. Turns out, this reduction of waste is a key benefit of off-site construction that enables the company to deliver attainable/affordable housing.
Modular can really pay off on large projects in remote areas where available labor is tight, according to Windel. On a major apartment complex project near Midland, TX, LW Development used volumetric components so it wouldn’t have to pay to house laborers for the couple of months it would have taken to frame the project in a traditional manner. Modular factory-built homes are in their infancy, but looks promising as an affordable housing solution.
Dr. J. David Chapman is Professor of Finance & Real Estate at The University of Central Oklahoma (jchapman7@uco.edu)