Find out what home styles—both interior and exterior—are seeing dramatic increases in online searches.

Homeowners are trying to maximize their space by taking on remodeling projects geared toward creating new living areas while overhauling their property’s style, according to the 2023 Houzz U.S. Emerging Summer Trends Report. Houzz, a home improvement site, analyzed the latest search insights from homeowners, designers and contractors to identify the following top trends. 

Online searches for “finishing a basement” have increased significantly over the past year as more homeowners look to turn their large, open spaces into a family or recreation room. Basements are being refinished to create a spot for watching movies, playing games and exercising, according to the report. The search term “basement golf simulator” posted one of the biggest upticks among home improvement-related searches, the report shows.

Rooftop Lounging

More homeowners are looking up to expand their spaces. Houzz found that “rooftop deck” and “rooftop patio” searches increased by 90% and 40%, respectively. The trend is mostly occurring in metro areas where outdoor space is a hot commodity, the report notes.

Bathroom Accessibility

More homeowners are showing an interest in renovating their bathrooms to include accessible features that enable them to live in their homes longer as they age. Houzz found that searches for “age-in-place bathrooms” and “handicap-accessible bathrooms” more than doubled compared to a year ago. Popular add-on features include handheld shower heads, ADA-compliant bathroom vanities and curbless showers.

Industrial-Style Kitchens

A greater number of homeowners are showing a desire to swap out their pristine, all-white kitchens for something a little more rugged. “Industrial kitchens” are generating greater interest, particularly for features like “kitchen track lighting,” “pull-down kitchen faucets,” “stainless steel countertops” and a “brick kitchen wall.” Houzz researchers also noticed a growing interest for “concrete countertops” and “copper kitchen backsplashes” that fit within this style.

The Entertainment Kitchen

More than half of renovating homeowners surveyed say they’re designing their kitchens for entertaining. Searches over the past year have grown for “open-concept kitchen to family room” and “island cooktop and ranges,” the survey says. These features allow hosts to prepare a meal as they engage their guests. Searches also have doubled for a “walk-in kitchen pantry,” with a space to not only tuck away kitchen goods but also hide toasters, coffee makers and other smaller appliances.

Carving Out Some Division

Open-concept design is popular in the kitchen, but homeowners still desire some privacy. Houzz researchers saw an uptick in interest in design elements that create temporary separation like a “living room divider,” “Shoji screen” or “partition wall.”

Painted Ceilings

The fifth wall is becoming the new place for an accent wall. Paint and texture are dressing up more ceilings. The trends report shows searches have spiked over the past year for “high-gloss ceilings,” “painted ceilings” and “black ceilings.” “Tongue-and-groove ceilings”—which are wooden planks that fit side to side across a ceiling—are also up significantly, with searches growing by 73% over the past year, Houzz reports.

A Historical Revival

Classic architectural elements are being mixed in with contemporary ones. Notably, search trends are up for features commonly associated with Colonial and Spanish Colonial styles. For example, homeowners are searching for Colonial design elements like “front porches” and “formal living rooms” as well as “Spanish Colonial exteriors.” “Homeowners are hiring architects and designers to help them honor the roots of their homes, while updating them with a cohesive, intentional look,” the report says.

Enhancing Outdoor Style

Homeowners are making the most of their outdoor space and aren’t letting limited size shrink their plans. Searches for “small swimming pool,” “small plunge pool,” “small pool house” and “small screened-in porch ideas” grew over the past year, the report notes. Also, researchers report that searches for “small outdoor kitchens” have more than doubled over the past year.

National Association of REALTORS®Reprinted with permission

At the high end, for-sale and rental multifamily luxury housing delivers the crème de la crème in technology, concierge-style services and amenities.

In many metros and suburban markets, luxury living means for-sale apartments that start at $1 million and rentals that are also uber-expensive. One recent for-sale listing in Boston’s chic Back Bay neighborhood was listed at almost $6 million; a San Francisco Pacific Heights rental was marketed at $10,000 a month.

Luxury doesn’t merely equate to dollars spent, though. There’s also a perception that a building, and what’s inside it, offers its occupants the best, says Mary Cook of commercial interiors design firm Mary Cook Associates, which collaborates with home builders.

Today, there’s another challenge for those working in this niche, says Cook. “There’s a greater tug of war between what goes into the units and amenity spaces because of the cost of building Class A structures. Costs for materials, labor, land and services are all rising,” she says, adding, “Everybody wants the best, and choices often depend on the demographic’s values and the project’s location.” In Salt Lake City, where outdoor activities are plentiful, a gear closet for ski and board storage is important. In a downtown site, a spacious roof deck with outdoor space, plantings and stunning views could add more value, Cook says.

Those developing and designing properties at the high end plan their budgets, too, to appeal to this demographic, says architect Michael E. Liu, senior partner and design principal at architecture firm The Architectural Team (TAT).

Luxury owners and renters aren’t the only beneficiaries. Many choices eventually trickle down and become more widespread and affordable for a larger pool of residents. Following are seven categories that set luxury buildings apart.

Location

Location still ranks high in the luxury space. Safety, walkability, access to greenery and superior views top the location list, says Ximena Rodriguez, principal and director of interior design at CetraRuddy in New York City. The 200 Amsterdam Avenue condominium building there, for which her firm served as interior designer, offers luxury in its proximity to Lincoln Center’s cultural offerings and Central Park.

Prize locations are also emphasized through materials, scale, detailing and fenestration, says architect John W. Schenck AIA, LEED AP of Svigals + Partners, in New Haven, Conn. The site for The Mark rental building designed by architecture firm AO plays up the historic district of Riverside, Calif., by showcasing views of the iconic Fox Theater and Mission Inn, says firm architect Michael Heinrich, AIA, Principal. Its stepped-back facade adds its own visual imprint to the streetscape. In downtown Philadelphia, Dranoff Properties’ Arthaus condominium building offers walkability in the arts district.

Suburbs have prime locations, too. The Finger Companies’ new The Quin rental building in Schaumburg, Ill., outside Chicago, is close to many corporate headquarters, a Topgolf entertainment venue, and highways to downtown and to O’Hare International Airport.

Residents will pay a premium for a desirable location, says Dan Doyle, senior vice president and COO at The Beach Company in Charleston, S.C. His company’s 12-story rental The Jasper in that city’s downtown offers panoramic water views and sits adjacent to a park and playground. “It’s the gateway to the historic district,” he says.

Size and Square Footage

The scale and square footage of areas from the shared spaces to the individual units can also convey a feeling of luxury, Rodriguez says. Some larger, detailed buildings stand out in their neighborhood or skyline, she says. Robert A.M. Stern Architect’s 15 Central Park West building in Manhattan has a recognizable classic limestone facade and canopied bronze entry door that mirrors the class of nearby older buildings. In Charleston, a city known for historic preservation, The Jasper’s facade mimics Old World wealth with 1,600 precast panels that use concrete clad with thin brick. Optima Verdana, a 100-unit, six-story building designed, developed and managed by Optima Inc. that opens soon in the Chicago suburb of Wilmette, Ill., presents spacious layouts and features similar to those of a custom single-family home.

Materials

Configuration and aesthetic are as important as the materials themselves. “It might be the way a beautiful marble is installed, a special glass is used in cabinets or an island is constructed,” says Rodriguez.

Sustainability and wellness have become more important, with choices veering toward low-volatility paints and carpeting, FSC-certified woods, and LED lighting and controls. Dranoff’s Arthaus is said to be Philadelphia’s first biophilic development, with personal garden plots and a professional greenhouse. The Jasper emphasizes big windows and natural light. If there’s a common denominator in what luxury looks like, it’s cleaner, lighter and without a Mediterranean edge, says real estate salesperson Kevin Spina of Keyes Real Estate in Palm Beach Gardens, Fla.

Amenities

Over the past five to 10 years, lines have blurred between amenities at the for-sale and rental luxury levels, says Liu. As with a single-family home, curb appeal starts at the sidewalk, with features like upscale landscaping, lighting and walkways, and continues through the lobby and shared spaces and up to the terraces and rooftops.

The most luxe shared spaces also incorporate the latest trends borrowed from hotels and resorts, such as wine and liquor cabinets, beehives and edible gardens.

Workspaces are available in units and also in amenity rooms, where luxury finishes and office perks like coffee bars and plush furnishings are available, says designer Carrie Tolman, associate principal with Chicago architecture firm KTGY’s interior design studio. Some buildings allow residents to purchase cabanas for privacy, says Spina. At The Quin, residents can rent furnished guest suites, so their guests enjoy privacy, says Hunter Wagner, The Finger Companies’ executive vice president of asset management.

The Sky Lobby fine dining restaurant at Raffles Boston Back Bay Hotel & Residences in Boston, Massechusetts

Because of today’s emphasis on healthfulness, activities abound: Squash, basketball, pickleball, indoor and outdoor pools, and golf simulators are favorites. At The Quin, a gated 2 1/2-acre park has lighted walking trails, benches, picnic tables, two dog parks and native trees and specimen plantings. And gardens also aid healthy outlooks and bodies. Optima Verdana, in Wilmette, includes exterior hanging gardens designed to remain green year-round in its four-season surroundings.

Some buildings, particularly in South Florida, focus on kids through themed play and learning rooms, toddler splash pads, over-the-top playgrounds, miniature golf courses, sports courts and outdoor theaters. Miami’s One Park Tower by Turnberry features a crystal clear 7-acre lagoon.

A themed playroom for children in the Baccarat Residences Miami, Florida

More buildings are also incorporating food and dining options, through a hotel dining room or restaurant or a convenience store, often with healthy options, says designer Katherine Berger, Director of Design at Svigals + Partners. Many terraces and rooftops also have top-notch kitchen equipment that mirrors quality indoor appliances and allows residents to be their own chef.

The best of technology is a must-have as well, with strong bandwidth and smart-home features that residents can control from their mobile devices. Many buildings have added customized apps to track deliveries, schedule repairs and communicate with staff or other residents, says Doyle.

Unit Features

Luxuries show up in handcrafted materials, extra-high ceilings, oversized windows, bigger glass walls to the outside, the best kitchen and bathroom appliances and fixtures, water conservation and energy efficiency considerations, multiple fireplaces and balconies, detailed moldings and trims, and oversized closets. But owners prefer to outfit closets themselves, says Alexander Donovan, senior project manager at TAT. Anything that can be done to decrease upkeep gains favor, like The Jasper’s use of wood or luxury vinyl planking rather than carpet.

In-unit living space and bedroom at The Jasper in Charleston, South Carolina

Some developers, like Harvey Hernandez, founder and CEO of Newgard Development Group, fully furnish units as a luxury perk. The company’s Lofty Brickell in Miami is furnished with Italian mattresses and German appliances, he says. If buyers want to make selections, they can receive a furniture credit, he adds. Of the building’s 362 condos, 92% have been presold.

Services and Programs

Services and programs are also borrowed from the hospitality sector as more condos and rentals are constructed within hotels. Raffles Residences in Boston, designed by TAT, is one example. Other names that convey status in the luxury residential niche include the Baccarat Residences, Casa Bella Residences by B&B Italia, Waldorf Astoria, the Ritz-Carlton, the Standard Residences and Aston Martin Residences.

Service may come from the equivalent of a concierge or doorperson who walks a resident’s dog, delivers dinner or parks a car. At The Jasper, two concierges plan events such as bourbon tastings, says Doyle. Other specialists on staff or contract provide massages, pedicures, manicures and fitness training in a home, says Tolman, whose firm recently completed renovations at the Waldorf Astoria Chicago.

Clubroom at The Quin in Schaumburg, Illinois

The goal, Rodriguez says, is to make life easier. To follow that, staff at Houston-based Venterra Realty’s rental properties will hang a TV and perform other handyman services gratis, says Richard Roos, chief operating officer.

Quality Control

Updates are critical to maintain luxury. At The Beach Company’s buildings, that means painting, wallpapering and laying new carpeting or flooring every two to five years, or as needed. At its 2-year old The Jasper, the company is refreshing pool deck furniture. “We’re in a harsh climate and people use the facility,” Doyle says.

National Association of REALTORS®
Reprinted with permission

A growing number of cities are passing ordinances to decrease night-time light pollution, and agents in the know are better equipped to help clients.

For years part of the emphasis on beautifying outdoor yards included some form of landscape illumination. The goal was to up-light trees and shrubs, accent flower beds, pools, paths and houses to showcase them as well as add a sense of safety as dusk turned to darkness.

The technology of low-voltage LED lights offer greater energy efficiency. And as prices came down, home improvement projects that incorporated lighting also became more affordable.

Now, there’s another lighting change underway in urban, suburban and rural areas nationwide. The bright light sent upward into the sky has polluted the air, making it hard to see the sun, moon and stars.

An Overview of Light Pollution

Over the last 25 years, light pollution has increased by at least half and is growing about 10% annually, according to the International Dark-Sky Association (IDA), a Tucson, Ariz.-based organization focused on reversing the issue. One-third of the world’s population can’t see the galaxy at night that makes up the Milky Way, according to Stephen Loring, arctic archaeologist and museum anthropologist with the Arctic Studies Center at the Smithsonian’s National Museum of Natural History in Washington, D.C. The effect of light pollution is part of an exhibit that Loring co-curated titled “Lights Out: Recovering our Night Sky,” which continues through April 2025.

It’s an important exhibit, Loring says, because light pollution adversely affects all forms of life on Earth. Bright light hurts plants, animals, insects, fish and people by affecting their natural rhythms and habits. “Birds pay a heavy price and are sometimes killed when artificial lights throw them off course,” says astronomer John Barentine, who started Tucson-based Dark Sky Consulting to help decrease light pollution. “The lights hurt other animals by exposing them at night to predators. In other cases, certain insects like fireflies can’t find their mates because they can’t see them signaling,” Barentine says.

Excessive night light also causes problems for humans, and not just because they can’t enjoy the wonder of night-time celestial bodies, Barentine says. “Exposure to artificial light at night disrupts circadian rhythms, which, in turn, lessens production of melatonin, the hormone that promotes sleep,” he says.

While light pollution has existed for decades, more buildings and denser neighborhoods have increased the problem, particularly after the Second World War. In 1958, Flagstaff, Ariz., passed the first outdoor lighting ordinance, which outlawed searchlights for advertising to protect the sky overhead. The city’s local Lowell Observatory was concerned that pollution would limit its telescope’s capacity. Tucson adopted an outdoor lighting ordinance on June 5, 1972, so that night lighting wouldn’t interfere with its astronomical observatories, according to an articlepdf by Dr. David Portree.   

The Environmental and Monetary Cost of Light Pollution

Since its founding in 1988, IDA has helped guide businesses and homeowners to light their environment with as little bright light as possible. IDA points to several reasons for reducing light pollution at the commercial and personal levels. One is the huge waste that comes from artificial brightness or “skyglow.” About 20 to 50% of the light that shines into the night sky is said to be lost due to fixtures being unshaded, which results in an estimated economic cost of about $3 billion, says Brian Liebel, Director of Strategic Initiatives at IDA. “We all pay that cost, either directly through utility bills or in the prices of goods and services, into which infrastructure costs are rolled.”

In addition, about 15 million tons of C02 is emitted each year to power residential outdoor lighting, which would require that 600 million trees be planted to offset that carbon emission amount. Lighting expert Dawn Brown, Associate IALD, CLD, with Canadian architecture and engineering firm WalterFedy said in a podcast titled Light Pollution is Pollution, “We can see better under natural light conditions rather than bright light.”

The good news is that the problem is solvable, says Loring. “Lights don’t have to be on all the time, can be angled downward and even turned off at times, including when birds migrate and might strike buildings because they’re distracted,” he says.

How Communities are Addressing Light Pollution

Arizona cities may have jumpstarted this country’s effort to decrease light pollution, but other cities, municipalities and states are joining the initiative. Some are adding regulations to zoning ordinances that residents must follow when they install lights outdoors. New Mexico passed its comprehensive Night Sky Protection Act in 1999, one of the first of its kind to make dark skies a focus, says Loring. Eighteen other states, plus Washington, D.C., and Puerto Rico, have some type of state-level law governing outdoor lighting. About 40 cities internationally have also acted. A list that’s regularly updated appears on IDA’s website.

Amanda Padilla, a senior planner with the zoning department in Bee Cave, Texas, a certified IDA International Dark Sky Community, said her city, 20 minutes outside Austin, approved a new light ordinance this past February to protect its surrounding preservation acreage. “We wanted to ensure that surrounding lands and our ecosystem as well as residents’ health and well-being would be protected from the harmful effects of light pollution,” she says. The city doesn’t limit residents to using a set number of light fixtures on their property but wants homeowners to make an intentional effort to pare light pollution, she says.

Builders and Developers Accommodate Solutions

Another step pushing the concept forward is that more builders and developers are following IDA guidelines so that new communities they construct may qualify as a dark-sky community. Such places often appeal to homebuyers who are interested in sustainability or conservation.

The 180-acre Canyon Pines development, planned by Chad Ellington and surrounded by 1,200 acres of open space in Arvada, Colo., which is just outside Denver, reflects such goals. The community includes 90 custom homes and seven to eight miles of trails. In keeping with the philosophy of preserving the natural environment and its wildlife, the right light fixtures and bulbs will be required as construction begins. “We want to preserve the site as well as comply with the city of Arvada, which doesn’t permit up-lighting on trees or houses,” says Ellington. He says complying with requirements is easy and doesn’t incur much in the way of additional expenses. Interested homeowners who buy into the community must submit a light plan for review and approval.

How Real Estate Professionals Can Counsel Clients

To aid the dark-sky illumination initiative, real estate professionals might encourage homeowners outside communities with light-specific guidelines to follow those regulations on their own accord. The IDA lists five key rules on its website and encourages residents to be good neighbors and not “light trespass” or direct light pollution onto a neighbor’s property:

• All light should have a definite purpose. Before installing any, homeowners should weigh reflective paint or self-luminous markers instead of permanently installing outdoor lighting.
• Light should be directed only where needed, which is made easier with a shield and by aiming the light beam, so it points downward.
• Low light levels limit the amount of light.
• Light should be used only when it is needed rather than left on 24/7; that is why motion detectors and timers are useful.
• Light colors should be carefully selected and preferably warmer colored rather than blue-violet. “The blue scatters the light more in the night sky and increases the level of light pollution,” Libel says.

But it’s not just night-time outdoor light that should be curtailed, says Liebel. “Most of our time is spent indoors and so it’s important when inside to dim your lights and use warmer color lights at night, about 2700 Kelvin or lower,” he says.

As a real estate pro, you may want to suggest clients purchase outdoor lights that include an IDA label since these products will minimize or reduce glare, light trespass and skyglow and harmful blue light. IDA does not sell lighting but offers an FSA Database with fixtures that have been certified as dark-sky friendly. To help clients find retailers that sell proper lighting, they might visit the Dark Sky Retailers page. Those who follow IDA’s steps [NS1] [BB2] can display its Dark-Sky Friendly Home certification once they submit results to comply.

Nowadays when homeowners hire professionals to install outdoor lights to showcase trees, large shrubs or art, they might ask installers to follow similar guidelines. One expert, Sacramento, Calif.-based landscape designer Michael Glassman, does this and suggests not illuminating an entire plant or artwork but directing light toward interesting branches or part of the artwork and pointing it down rather than up into the sky.  

There’s no federal legislation yet, but Barentine remains hopeful that may happen. “My hope is that as a society we will come to fully appreciate the significance of light pollution as a problem on par with other kinds of pollution Congress has chosen to regulate,” he says.

National Association of REALTORS®
Reprinted with permission

While typically small in square footage, accessory dwelling units deliver affordable housing at a time of great need.

The Need Is Real

Reasons for interest vary but the most prevalent may be that ADUs are making a dent in the country’s housing supply shortage. “They’re not the only solution but one tool in the toolkit,” says developer Denise Pinkston, a partner of San Francisco–based TMG Partners and president of Casita Coalition, a Los Angeles–based group whose goal is to increase the number of small homes throughout California. “We’re in favor of finding ways to help people gain a home since the down payment needed has eclipsed the ability of most working families,” she says. Spevak agrees: “They’re a way to build less-expensive housing without public subsidies since they’re often less costly to rent or buy than other neighborhood options.”

For older adults on fixed incomes, ADUs allow aging in place, which otherwise may be difficult, says Harrell. “Our neighborhoods are 80% single-family housing,” he says. ADUs also serve as guest houses, home offices, quarters for grown children and dwellings for natural disaster victims. (ADUs differ from tiny houses, which are under generally less than 400 square feet, often atop wheels, and not permitted on residential properties for the long term.)

Additionally, ADUs can be a way to earn rental income or make a property more flexible as family needs change, says Portland, Ore., broker Aryne Blumklotz of Aryne + Dulcinea with Living Room Realty. Her business partner, broker Dulcinea Myers-Newcomb, added a 458-square-foot prefab ADU on her property to house her father in 2018. It may become a rental to help pay for her children’s college tuition.

Where ADUs Are Taking Off

Since 2000, when AARP issued the first edition of a model state act and local ordinance, more states have adopted legislation that effectively allows ADUs and preempts local prohibitions. AARP’s Livability Index tracks statewide ADU legislation. The index credits California, Florida, Hawaii, Maine, Montana, New Hampshire, Oregon, Rhode Island, Vermont, Washington and the District of Columbia for having legislation that encourages or supports ADU development.

California started by allowing conversions of existing structures with a building permit, regardless of local zoning laws. Over time, it removed such barriers as owner-occupancy requirements, homeowners association prohibitions and limited parking requirements. It reduced fees and finally permitted state-allowed freestanding ADUs in a yard of a single- or multifamily site, regardless of local standards, says Pinkston. It also allowed ADUs in unused areas of multifamily buildings like attics or bike rooms.

“In just a few years and through a pandemic that slowed other housing types, the California results have been impressive,” Pinkston says. “More than 65,000 ADUs have been added across its cities, suburbs and rural areas, all starved for workable housing options.”

National Association of REALTORS®
Reprinted with permission

What pays off the most when it comes to curb appeal?

Ninety-two percent of REALTORS® recommend that sellers improve their curb appeal before listing their home for sale, according to a survey from the National Association of REALTORS® and the National Association of Landscape Professionals. What pays off the most when it comes to curb appeal? Of course, every project and every market is different, but here’s the estimated cost recovery on the top outdoor remodeling projects identified in the 2023 Remodeling Impact Report. Cost estimates are from landscape pros; cost recovery estimates are from REALTORS®, members of NAR.

1. Standard lawn care service: 217% (percent of value recovered)

• Project: Complete six standard seasonal applications of fertilizer or weed control on 5,000 square feet of lawn.
• Cost estimate: $415
• Estimated cost recovered: $900

2. Landscape maintenance: 104%

• Project: Mulch, mow, prune shrubs and plant about 60 perennials or annuals.
• Cost estimate: $4,800
• Estimated cost recovered: $5,000

3. Outdoor kitchen: 100%

• Project: Install an inset grill, stainless steel drawers, ice chest sink and concrete countertop with veneered masonry stone.
• Cost estimate: $15,000
• Estimated cost recovered: $15,000

4. Overall landscape upgrade: 100%

• Project: Install a front walkway of natural flagstone; add two stone planters, five flowering shrubs and a 15-foot-tall tree.
• Cost estimate: $9,000
• Estimated cost recovered: $9,000

5. New patio: 95%

• Project: Install a backyard 18-by-16-foot concrete paver patio.
• Cost estimate: $10,500
• Estimated cost recovered: $10,000

National Association of REALTORS®
Reprinted with permission

As a way to deliver quality housing faster, communities are embracing modular options.

There have never been more options available in home building than there are today, and yet site-built construction remains the predominant method of building single-family homes. According to analysis from the Urban Institute, site-built (also known as stick-built) construction accounts for 97% of new single-family homes. In fact, over the last two decades, factory-built homes fell from 5% to 3% of single-family home production, peaking just before 2008.

Despite this trend, factory-built homes—also referred to as prefabricated, or “prefab,” homes—offer unique opportunities to address the nation’s housing supply challenges. “Factory-built has the potential to not only increase supply but also solve the implied mismatch,” says Michael Neal, principal research associate and equity scholar at the Urban Institute. The mismatch Neal refers to is the difference between what’s being built and what area households can afford.

“Prefabricated houses are the best-kept secret in America,” says Sheri Koones, a prolific writer on the variety and value of prefab homes. Koones regularly encounters a general lack of knowledge and prevalent misconceptions among consumers. Prefabricated homes encompass several different types of factory-built housing, including modular, panelized and pre-cut. A distinguishing factor among prefab methods is the degree of assembly before the pieces arrive on site. Panelized and pre-cut packages require more assembly, whereas modular units are nearly complete.

One common confusion is the difference between modular and manufactured homes. While both modular and manufactured homes are assembled in factories, they are built to two different codes. Manufactured homes, previously called “mobile homes,” are built on permanent metal chassis in compliance with the federal Manufactured Housing Construction and Safety Standards, also called the HUD code, which preempts state and local codes. Modular homes are built to the same International Residential Code, or IRC, as site-built homes and must conform to state and local regulations.

Modular homes are being built and delivered across America. “We’re designing houses for literally all around the country,” says Geoffrey Warner, principal architect and owner of Alchemy, based in St. Paul, Minn. In Chicago, Joshua Braun, founder and CEO of Kinexx Modular Construction, observes that “modular has been very popular on the West Coast. Primarily what has been driving modular is really the cost of land and the cost of construction. I think that people are starting to realize that modular makes sense because we’re experiencing labor shortages across the country.” Koones shares similar data: “It’s very popular in Washington, Oregon, California. A lot in New England … not so much in the South, where there is cheap labor.”

There is a surprising diversity in modular’s suitability for different sites. The suburban environment is an obvious application, but builders have had success with narrow urban in-fill and large commercial developments. Modular construction offers advantages for rural and remote sites, too, including islands, and has found a niche in off-grid designer dwellings.

The Santa Rosa, Calif., home is essentially two boxes. A public box includes a living room, dining room, and kitchen. A private box, not shown, includes two bedrooms and two baths.

‘An Engineered House’

Modular housing’s defining characteristic begins with design, Warner says. “It’s box space as opposed to, say, barn space. Modular is basically saying, I’m going to build all these rooms, finish everything outside and inside as much as possible and stick that on a truck—a small house made either from one box or multiple boxes.”

Consumer demand for prefabricated homes is hampered by stigma about quality and customization. “People assume that because it shows up in pieces, the quality is less than” a site-built home, Braun says, “and that’s actually completely the opposite.

“Most of my colleagues would agree that modular homes are actually a superior product because you’re getting an engineered house,” Braun adds. “Imagine your home. Now attach a crane to it, pick it up, shake it around, and then put the whole thing back down. That’s essentially what a modular home has to endure. Every modular builder makes some semblance of a box, and the box has to move around the shop, be put onto a truck, driven down the road, and then be put onto the foundation by a crane. In order to maintain the rigidity of the box, it has to be engineered to withstand the rigors of transport. We build a two-story home, and our same material could be used to build a 15-story building.”

Working in a factory has its advantages. Builders can control variables that could compromise and delay site-built construction. “Because we’re building in a controlled environment, our material, our homes, don’t see a drop of rain on the inside,” Braun said.

Greater Sustainability

A tight building envelope is critical for energy efficiency. “When a house is being built on-site, it’s built from the outside in because it needs to be closed up,” says Koones. “You have a chance that the wood could get wet, and at some point, it’s going to turn and twist. That makes a place where air can infiltrate. Modular houses are built from the inside out and all of the components are kept dry.”

Modular construction, by process and design, lends itself to greater sustainability than site-built construction, Koones says. In addition to a tight building envelope, the factory-floor environment allows for more insulation to be packed into walls, roofs, and everywhere in between. “When you build from the inside out, you have an opportunity to put in more insulation, around all the outlets and everything,” Koones said. A highly insulated home is a passive strategy to save on energy costs over a lifetime.

Proponents say precision building on an assembly line also reduces waste during construction.

The three-bedroom Harrison Row townhomes showcase Kinexx’s mission to help developers deliver affordable housing with good design.

Speed and Savings

The primary benefit of factory-built construction is efficiency. “Your workforce is all going to this one place every day,” Warner says. “Your kit is right there, and you can take advantage of industrial machinery.”

“Our goal is 90 days or less,” says Braun. “We build a home in about 7 days; our homes are 10 modules each; we deliver each in typically about 6 hours. Then it typically takes us 45 to 60 days to finish it on-site.”

While a custom modular home isn’t necessarily cheaper than a stick-built one, the opportunities for savings multiply with volume-based building. “In our first full year of operation, we delivered 43 affordable homes in the city of Chicago,” says Braun. “These are neighborhoods that desperately need housing on the South and West sides.”

Kinexx was tapped by Structure Development and Fain’s Development to complete the Harrison Row Townhomes project on Chicago’s West Side after the first seven stick-built townhomes were mired by delays and cost increases. In quick time, Kinexx delivered 28 duplexes with three to four bedrooms each at a sale price of about $245,000, compared to Chicago’s median $315,000 home price.

In Koones’ latest book, Prefabulous for Everyone, she addresses America’s housing shortage head-on and profiles a wide variety of homes to illustrate the possibilities of prefab solutions.

One home she describes, the Ashford Weehouse, designed by Geoffrey Warner, is a resilient rebuild of a family home burned in a California wildfire. The artistic three-modular-unit house was designed with future fires in mind and features fire-resistant exterior elements.

Braun knows that “Stick-built buildings are never going away.” But for modular to succeed, consumer education must be a top priority, and land use regulations and construction financing will have to adapt.

“After working on this for 25 years, it’s not a panacea, but it does have utility,” Warner agrees. “I think we can eventually make a difference in terms of how housing and buildings, in general, are produced.”

National Association of REALTORS®
Reprinted with permission