California Lawmakers Aim to Boost Factory-Built Housing in 2026

State legislators want to make this the 'Year of the Housing Factory' to help address the state's housing crisis.

Published on Feb. 13, 2026

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California lawmakers are making a renewed push to boost factory-built housing in 2026, hoping to address the state's ongoing housing shortage. Assemblymember Buffy Wicks is leading the charge, organizing hearings to gather information and build political momentum for a package of bills that would provide state assistance to help the factory-built housing industry take off. While past attempts to industrialize home construction have failed, supporters believe the time may finally be right, with the state having already tackled many regulatory barriers to housing development.

Why it matters

Factory-built housing has the potential to significantly reduce construction costs and timelines, which could help make new housing more affordable and accessible. However, the industry has struggled to overcome challenges like high upfront costs, lack of familiarity among developers and regulators, and resistance from organized labor. California's efforts to boost this sector could serve as a model for other states looking to harness the power of industrialized construction to address housing shortages.

The details

California lawmakers are hoping to make 2026 the 'Year of the Housing Factory' by providing state assistance to help the factory-built housing industry grow. Assemblymember Buffy Wicks has organized hearings to gather information and build political support for a package of bills that could include measures to create a steady pipeline of projects for factories, provide insurance against developer bankruptcies, and standardize building code requirements. While past attempts to industrialize home construction have failed, supporters believe the time may finally be right, with the state having already tackled many regulatory barriers to housing development. Factory-built housing can reduce construction costs by 10-25% and timelines by 10-30%, but the industry has struggled with high upfront costs, lack of familiarity, and resistance from organized labor.

  • In late 2024, Assemblymember Wicks organized a series of state-spanning meetings on 'permitting reform' that led to nearly two dozen housing bills in 2025.
  • Last year, many of those bills were signed into law, removing regulatory barriers to building dense housing across California.
  • In early 2026, Wicks has organized two select committee hearings on 'housing construction innovation', with a focus on factory-built housing.

The players

Buffy Wicks

An Oakland Democrat and one of the California legislature's most influential policymakers on housing issues, leading the charge to boost factory-built housing in the state.

Randall Thompson

Runs the prefabrication division of Nibbi Brothers General Contractors, and has seen a growing number of 'modular-curious' clients in recent years.

Ryan Cassidy

Vice president of real estate development at Mutual Housing California, an affordable housing developer that committed last year to build its next five projects with factory-built units.

Ben Metcalf

Director of the Terner Center for Housing Innovation at UC Berkeley, which is writing a white paper summarizing the information gathered in Wicks' hearings.

Jan Lindenthal-Cox

Chief investment officer at the San Francisco Housing Accelerator Fund, which is hoping to provide short-term, low-cost loans to developers to cover the higher upfront costs of factory-built housing.

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What they’re saying

“Over the last eight to 10 years or so the Legislature and the governor have really taken a bulldozer to a lot of the bureaucratic hurdles when it comes to housing. But one of the issues that we haven't fundamentally tackled is the cost of construction.”

— Buffy Wicks, Assemblymember (CalMatters)

“When you go to buy a car, you don't get 6,000 parts shipped to your house and then someone comes and builds it for you.”

— Ryan Cassidy, Vice President of Real Estate Development, Mutual Housing California (CalMatters)

“Factory-built housing has the potential to reduce hard (labor, material and equipment) costs by 10 to 25% — at least under the right conditions.”

— Ben Metcalf, Director, Terner Center for Housing Innovation at UC Berkeley (CalMatters)

What’s next

The Terner Center for Housing Innovation at UC Berkeley is writing a white paper summarizing the information gathered in the select committee hearings, which will be released in the coming weeks. Assemblymember Wicks is also expected to introduce a package of bills aimed at boosting factory-built housing in California.

The takeaway

California's renewed push to support factory-built housing reflects a broader effort to find innovative solutions to the state's housing crisis. While past attempts to industrialize home construction have faced significant challenges, the state's recent progress in removing regulatory barriers has created new optimism that this approach could finally take off. If successful, California's model could serve as a template for other states looking to harness the power of industrialized construction to make housing more affordable and accessible.