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Utah Lawmakers Focus on Factory-Built Housing to Tackle Crisis

  //house-home.news-articles.net/content/2026/01/2 .. s-on-factory-built-housing-to-tackle-crisis.html
  Published in House and Home on Thursday, January 29th 2026 at 9:12 GMT by The Salt Lake Tribune
      Locales: Utah, UNITED STATES

Salt Lake City, UT - January 29th, 2026 - Utah lawmakers are intensifying their focus on factory-built housing as a critical component in addressing the state's worsening housing crisis. With projections indicating a need for 82,000 new housing units by 2028, conventional construction methods are struggling to keep pace with rapid population growth, pushing home prices upwards and creating significant affordability challenges for residents.

The concept, encompassing modular and prefabricated construction, involves building homes in controlled factory environments and then transporting them to designated building sites for final assembly. Proponents argue this approach offers significant advantages over traditional "stick-built" construction, primarily in terms of speed and cost.

Senator Lincoln Fillmore (R-South Jordan), a leading voice on the issue, is sponsoring legislation aimed at removing regulatory hurdles currently hindering the wider adoption of factory-built homes. "We're facing a situation where the demand for housing vastly outweighs the supply," Fillmore stated during a legislative committee hearing earlier this week. "We need to be open to innovative solutions, and factory-built housing represents a viable and potentially transformative pathway to alleviate this shortage."

Recent studies bear out the potential benefits. A 2023 report from the Kem C. Gardner Policy Institute at the University of Utah highlighted the escalating housing deficit and underscored the urgency of exploring alternative building techniques. Experts estimate that factory-built homes can be completed up to 50% faster than conventionally built structures, thanks to streamlined processes, reduced weather-related delays, and economies of scale achieved through mass production. This speed advantage could be crucial in quickly increasing housing stock and moderating price increases.

However, the path to widespread implementation isn't without its obstacles. One significant challenge revolves around logistics. Transporting oversized home components requires specialized equipment and careful route planning, particularly in Utah's varied terrain. Furthermore, securing financing for factory-built homes has historically been more difficult than for traditional construction, although this is slowly changing as lenders become more familiar with the process and quality control standards.

Perhaps the most persistent barrier is overcoming a lingering public perception that factory-built homes are somehow inferior in quality to site-built homes. This perception, largely rooted in the early days of prefabricated housing, is demonstrably outdated. Modern factory-built homes adhere to stringent building codes, often exceeding those applied to traditional construction. Many manufacturers utilize advanced materials and techniques, resulting in homes that are not only durable but also energy-efficient.

Senator Fillmore's bill, currently under consideration by the Utah State Legislature, proposes several key changes to address these challenges. These include modifications to state zoning regulations to allow for greater flexibility in the placement of factory-built homes, streamlining the permitting process, and the establishment of a dedicated task force. The task force will be charged with conducting a comprehensive review of the factory-built housing industry in Utah, identifying best practices, and recommending further legislative improvements.

The bill isn't the only measure being considered. Lawmakers are also exploring strategies to increase housing density in urban areas - allowing for more apartments and townhomes - and streamlining the overall permitting process for all new construction projects. The combination of these efforts reflects a multi-pronged approach to tackling the complex issue of housing affordability.

Industry leaders are optimistic about the future. "Utah has a unique opportunity to become a leader in factory-built housing," says Sarah Jenkins, CEO of a local modular home manufacturer. "With the right policies and a commitment to innovation, we can significantly reduce the housing shortage and make homeownership more attainable for all Utahns."

The coming months will be crucial as the legislature deliberates on these proposals and the industry prepares to scale up production. The success of this strategy could not only provide much-needed relief to Utah's housing market but also serve as a model for other states grappling with similar challenges.