NIBS Hosts Public Hearing to Discuss Solutions to the Housing Affordability Crisis

On November 6, 2023, the National Institute of Building Sciences (NIBS) held a Housing Affordability Hearing in Washington D.C. This hearing, hosted by the NIBS Consultative Council, brought together individuals from across the nation to question the causes of the housing affordability crisis in America and shape solutions.

The hearing was comprised of three sessions which featured key industry leaders sharing their insights and expertise on housing affordability. The topics of discussion were:

• Session 1: The State of Housing Affordability 
• Session 2: Examining Solutions – Innovation & Best Practices 
• Session 3: Examining Solutions – Means and Methods 

Off-Site Construction and Housing Affordability

Throughout the day-long summit, modular construction was highlighted as a key solution to increasing affordable housing. In describing challenges to capturing the market share of modular construction, the National Association of Home Builder’s (NAHB) Chief Economist, Robert Dietz, explained that the U.S. Census Bureau’s definition for “modular” is too narrow to capture the construction market impact.  

While the Census definition states that two percent of the market share in 2022 represents modular, Dietz argues that seven percent is more accurate. He also stressed that manufactured and modular housing are two areas seeing strong growth.

Additional challenges to off-site construction included mentions of working with a patchwork of state and local building codes. Dr. Herbert, Managing Director of Harvard’s Joint Center for Housing Studies, called for a “more rational system” to deal with the differentiation between the codes. MODX’s Ivan Rupnik’s presentation, not only provided a comprehensive history of off-site construction and the benefits of factory-built construction, but also directly addressed Dr. Herbert’s concerns by highlighting the Code Council’s work on the ICC/MBI off-site construction standards.

The U.S. Department of Housing and Urban Development‘s (HUD) Principal Deputy Assistant Secretary for Policy Development and Research, Solomon Greene, continued to build on the importance of modular. During his presentation, Greene highlighted the important work showcased in the January 2023 HUD Offsite Construction Research Roadmap, a publication that included Code Council participation. During a Q&A portion, Greene stressed the “bright future” for building innovation with respect to the increased use of off-site construction.

Tyler Pullen of the Terner Center for Housing Innovation at UC Berkeley emphasized in his presentation that building codes are an important leverage tool in affordable building. His presentation highlighted the opportunity for greater cross-jurisdictional alignment of codes, however, he also argued that broader use of a performance code is key to unlocking innovation. Similarly, Deputy Assistant Secretary Greene stressed that modernizing building codes reaps substantial benefits over time. With the historic amount of funds available for energy improvements and tax credits, the cost burden should be significantly offset. His message amplified the need to ensure that homes are built to modern resilient building codes.

Beyond the off-site construction focus, a skilled workforce shortage also received important attention. Dietz underscored the need to add 700,000+ skilled construction workers per year to keep pace with the housing demand. He also stressed the need to diversify the workforce, specifically the importance of bringing women into the trades.

As the later panels were more focused on finding solutions to concerns surrounding workforce, labor and supply, Rupnik described how modular construction facilities in Scandinavia are attracting more women due to the greater attention to safety within the factory setting aboard.

As a result of the hearings, NIBS announced they will publish a report of the hearing’s events and key findings in early 2024.

International Code Council Support for Affordable Housing

Ryan Colker, Vice President of Innovation for the Code Council, submitted testimony to the NIBS Consultative Council speaking on approaches to advance innovation, sustainability and resilience of the U.S. housing stock—while increasing affordability and availability.

The testimony discussed topics such as advancing standards in off-site construction to accelerate its growth, the integration of advanced materials and construction methods within the International Codes®, how building codes protect life safety without impacting affordability and how modern building codes enhance resilience and can reduce homeowner vulnerability.

Colker’s testimony, which was given on behalf of the Code Council, was commended by Solomon Greene, Principal Deputy Assistant Secretary for Policy Development and Research, and several others in attendance.

To read the submitted testimony, visit here.  

View the Code Council’s off-site construction webpage, here.