California Lawmakers Aim to Boost Factory-Built Housing in 2026

State legislators believe this year could be the turning point for industrialized housing construction in the state.

Published on Feb. 15, 2026

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After decades of failed attempts to mass-produce homes through factory-based construction, California lawmakers are making a new push to boost off-site housing production in 2026. Assemblymember Buffy Wicks is leading the charge, organizing hearings and planning a legislative package to address the barriers that have historically held back factory-built housing. While the concept has struggled to take off, proponents believe that with the right policy support, this year could mark a turning point for industrialized housing construction in the state.

Why it matters

California is facing a severe housing shortage, and finding ways to drive down construction costs and timelines is crucial. Factory-built housing offers the potential to reduce hard costs by 10-25% and shorten construction timelines by 10-50%, but the industry has historically struggled with high upfront costs, regulatory hurdles, and a lack of familiarity. If California can create the right policy environment, factory-built housing could become a more viable solution to the state's housing crisis.

The details

Wicks has organized two select committee hearings on "housing construction innovation," with a focus on factory-based building. The hearings are intended to gather information for a white paper being written by researchers at the Terner Center for Housing Innovation at UC Berkeley. This will then inform a package of bills Wicks plans to introduce in the coming weeks. The proposed policies aim to address barriers like the high upfront costs of setting up factories, the need for a steady pipeline of projects to keep factories running at full capacity, and the lack of familiarity with off-site construction among regulators and subcontractors.

  • In late 2024, Wicks organized a series of meetings on 'permitting reform' that led to nearly two dozen housing-related bills in 2025.
  • Wicks and other lawmakers visited Sweden last fall, where nearly half of residential construction takes place in factories.

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.

Terner Center for Housing Innovation at UC Berkeley

Researchers at the center are writing a white paper summarizing the information gathered from Wicks' select committee hearings.

Gavin Newsom

The Governor of California who enthusiastically signed into law last year legislation exempting most urban apartment buildings from environmental litigation.

Randall Thompson

Runs the prefabrication division of Nibbi Bros. 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.

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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

“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

“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

What’s next

The white paper from the Terner Center and the legislative package from Assemblymember Wicks are expected to be released in the coming weeks.

The takeaway

After decades of failed attempts, California lawmakers believe 2026 could be the year that factory-built housing finally takes off in the state. By addressing the key barriers that have historically held back the industry, such as high upfront costs and regulatory hurdles, the state hopes to unlock the potential of industrialized construction to help solve its housing crisis.