Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations
Watch Live

Prefabricated construction could lower housing prices in San Diego

A prefabricated house may look like most other modern homes, but the process to get there is rather different.

“Prefabricated simply means that it's built in a factory off-site. People sometimes confuse the terminology — modular is a term we use in the industry, it's built in sections in a factory (and) delivered to the site for assembly,” Todd Kesseler said.

Kesseler is the president of USModular Inc., a company that specializes in manufactured and modular housing.

Advertisement
A manufactured home in El Cajon sits on a permanent foundation, Nov. 16, 2022.
Jacob Aere
/
KPBS
A manufactured home in El Cajon sits on a permanent foundation, Nov. 16, 2022.

Kesseler said there’s a stigma about prefab housing, and getting past that is one of the biggest challenges.

“We used to say that they were like your grandmothers’ trailers back in the day, in that they focused so much on being affordable that the quality really wasn't there. In today's pre-manufactured housing, the quality is there and they're still less expensive than site-built structures,” he said.

According to Kessler, prefabricated construction is faster and cheaper than traditional on-site construction by roughly 10% to 30%.

The interior of an manufactured home, assembled by US Modular, is shown in Los Angeles in this undated photo.
Courtesy of US Modular, Inc.
The interior of an manufactured home, assembled by US Modular, is shown in Los Angeles in this undated photo.

Those were selling points for David Lynch. He’s adding a manufactured home on top of a permanent foundation next to his own house in El Cajon.

“And everything is ready to go. So you just get the efficiency of time and then the cost is substantially less than having to do a custom build — which we've gone through before so we know how painful and how expensive it can be,” Lynch said.

Advertisement

There are several types of prefab housing, from one-story manufactured homes to modular apartment blocks.

Modular housing units are being stacked into place at an apartment project in Van Nuys, California in this undated photo.
indieDWELL
Modular housing units are being stacked into place at an apartment project in Van Nuys, California in this undated photo.

Drew Orenstein is the CEO of Impact Housing, which develops modular housing complexes.

“So we take the cost savings, we take the time savings, and we translate that into what we hope to be a reduction in the rental price point,” Orenstein said.

He sees modular housing as a way to build high-quality multifamily housing in a quicker and more cost effective way.

The inside of a living room from one of Impact Housing's units is shown in this undated photo.
Impact Housing
The inside of a living room from one of Impact Housing's units is shown in this undated photo.

That, he said, will improve the lives of low- and moderate-income households.

“It's everything starting from $1,500 and up,” Orenstein said, regarding the monthly rent payments for units they build.

His company is bringing more of these complexes to the region, including a potential 900 unit development in Barrio Logan.

A rendering for Impact Housing's Logan Yards complex is digitally animated in this undated image.
Impact Housing
A rendering for Impact Housing's Logan Yards complex is digitally animated in this undated image.

“Two of the projects are under construction now. Another one that's a bit of a larger project — 324 units — is going to be starting constriction in the coming weeks. In terms of the larger project, we are going through the process with the city (of San Diego) to get our final approvals for that,” the CEO said.

Even with the pros of this type of construction, there are some concerns about housing for very-low income families.

“Unless you're building affordable housing and incorporating affordable housing units into every development in our community, you’re displacing folks,” Barrio Logan resident Julie Corrales said.

A manufactured home is split vertically down the middle, ready to be assembled in La Mesa in this undated photo.
Courtesy of US Modular, Inc.
A manufactured home is split vertically down the middle, ready to be assembled in La Mesa in this undated photo.

The state and region’s policy shift to a “build-now” approach has begun to open the doors for more prefabricated housing in the county.

In fact, a modular housing manufacturing facility is coming to the Imperial Valley next spring and is expected to serve San Diego County.

Pete Gombert co-founded the company, called indieDWELL.

“We can build it with labor that have a great job living where they are, and then ship the units to a high cost market,” Gombert said. “That tends to bring the cost of housing down anywhere from 10% to 40%, depending on where we are delivering to.”

The inside of an under-construction modular housing unit is shown from a project in Van Nuys, California in this undated photo.
indieDWELL
/
indieDWELL
The inside of an under-construction modular housing unit is shown from a project in Van Nuys, California in this undated photo.

He said a perk of modular housing construction is that it can come in all shapes and sizes — so it also works for smaller units to shelter those experiencing homelessness.

“Those units are about 380 square feet, they're studios. We’ve actually got a 260 square foot micro-studio that we do,” the indieDWELL co-founder said.

Some projects could be up to seven stories, due to their company’s use of steel frames instead of wood, with bigger units.

A nearly finished modular housing complex takes shape in Van Nuys, California in this undated photo.
indieDWELL
A nearly finished modular housing complex takes shape in Van Nuys, California in this undated photo.

“We’ve got some larger projects where we're doing two or three bedrooms that are 960 to 1100 square feet,” Gombert said.

Regardless of the size, financing prefabricated developments can be an issue — partly because it’s a new industry in the U.S. and there aren’t many developers.

“It'll be easier the longer we go, (and) the more builders of this type there are out there," said Shawn Harris of San Diego Commercial and Business Financing. "I would say with this type of asset, this type of project you're going to need a lot of help from the city so that deflects some of the risk for an investor.”

A manufactured home in El Cajon sits on a permanent foundation, Nov. 16, 2022.
Jacob Aere
/
KPBS
A manufactured home in El Cajon sits on a permanent foundation, Nov. 16, 2022.

Back in El Cajon, the speed and savings of getting a prefabricated home are allowing Lynch to list the unit under market value, with a young family in mind.

“A one-bedroom, two-bedroom place to rent is already expensive — it's ridiculous. So the families need a bit more space. This is a three bedroom, so they have capacity to grow with a couple of kids,” Lynch said.

Amid a housing crisis that has taken the hardest toll on low and middle income earners, backers of prefabricated housing say it offers a glimmer of hope: to provide a quality home for rent or purchase at a lower cost, that can be move-in ready in a fraction of the time.

  • San Diego hospitals are preparing for more patients after the Thanksgiving holiday. Experts have warned of a “tripledemic” as COVID-19, RSV and flu cases increase. Plus, California officials have long hesitated to list the beloved Joshua trees as endangered. Why? Climate change has never been used as a reason for a species’ possible extinction. And, a place where being a “class clown” is a good thing — Diversionary Theater in San Diego is teaching the art of clowning to students of all ages.
  • Cyber Monday spending is expected to break records with a projected $11 billion in sales. Next, now that Thanksgiving has come and gone, health officials are monitoring how holiday get-togethers impact flu and other respiratory cases across the county. And, UC San Diego climate scientists will share their thoughts on the latest UN climate conference later this week. Then, a changing climate is threatening the beloved Joshua trees in the Mohave Desert. But for years, California officials have struggled to decide whether to list the western Joshua tree as an endangered species. Next, a look at the role prefabricated housing could play in the rental prices. Finally, from our archive, an interview with border artists the de la Torre Brothers whose work is on exhibit at The Cheech through Jan. 22.

As a general assignment reporter, I report on a wide range of different issues that affect the diverse neighborhoods of San Diego County including business, health, arts & culture and politics.
What are issues affecting San Diego's most vulnerable?