According to CNBC, there’s a shortage of roughly 7 million affordable homes for the 11 million low-income families in the U.S. Off-site modular construction methods are common answers to the housing crisis, and although builders may be skeptical, massive tech companies are funding millions to support some modular home manufacturers. Both Google and Facebook have invested into the Bay Area-based Factory OS, says CNBC. Factory OS claims to cut down on the cost of construction anywhere from 20% to 40%. Bay Area construction costs can be upwards of $800,000, according to Factory OS CEO and Co-Founder Rick Holliday.
Factory-built modular homes are gaining traction as a possible solution, and could reduce the cost of construction by 20 to 40%. Entekra, Blu Homes and Blokable are already using this building technique while Connect Homes, which is led by a former Apple exec, has raised $27 million to do the same. Google and Facebook have invested in another company, Factory OS, which is building affordable homes in the Bay Area.