Source: The Governing

Date Published: 09/22/25

Link: San Diego Turns to Factory-Built Housing to Tackle Affordability Crisis

San Diego is increasingly turning to factory-built housing as a way to tackle its housing crisis. These units can be completed in a fraction of the time and at a lower cost than traditional construction, often allowing rents comparable to those of older complexes without requiring government subsidies. Approximately 2,000 units are either built, under construction, or under review, with major projects currently planned. Developers like Impact Housing and Domo Modular are leading the effort, streamlining production and cutting build times nearly in half. City officials say the approach reduces neighborhood disruption and helps meet urgent housing goals, though some critics worry developers may charge near-market rents or convert units to vacation rentals, which would not help resolve the housing crisis. Land costs remain the biggest barrier, but with support from city leaders and efforts to simplify approvals and inspections, factory-built housing is emerging as a promising tool to expand affordable housing options in San Diego.