As housing affordability reaches a critical breaking point across the United States, the federal government is once again looking to its vast land holdings for solutions. The idea isn’t new—previous administrations have floated similar proposals—but with home prices and rents soaring beyond the reach of millions of Americans, the push to repurpose federally owned land for residential use is gaining new momentum.
All photos – Abandoned Baron Air Force Base in CA
The Trump administration’s initiative to identify surplus federal properties for potential housing development raises a crucial question: could manufactured and modular construction provide a faster, more cost-effective way to turn these underutilized lands into thriving communities?
The Federal Land Opportunity
The U.S. government owns an estimated 640 million acres of land, much of it under the management of agencies like the Bureau of Land Management (BLM) and the U.S. Forest Service. While much of this land is protected for environmental, recreational, or military use, thousands of acres sit idle in urban and suburban areas with abandoned buildings—land that could be transformed into housing developments with the right approach.
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Traditionally, developing housing on public land has been mired in bureaucratic red tape, slow-moving approvals, and the high costs of infrastructure expansion. However, the potential to integrate modular and manufactured housing could dramatically change the equation. By leveraging modern offsite construction techniques, homes can be built in factories, delivered to the site, and installed in a fraction of the time required for traditional stick-built construction.
Manufactured and Modular: The Key to Affordability?
With rising labor costs, materials shortages, and zoning restrictions choking supply, manufactured and modular construction offer a realistic path forward. Manufactured homes—built entirely in a factory and delivered as a single unit—have long been an affordable alternative to site-built housing. Meanwhile, modular construction, which involves assembling factory-built sections onsite, provides a durable, energy-efficient, and scalable solution that aligns with contemporary building standards.
Both methods significantly reduce waste, labor expenses, and timeframes compared to conventional construction. If the government were to streamline approval processes and provide incentives for modular and manufactured housing on federal land, developers could bring thousands of new units online much faster than with traditional methods.
Breaking Down Barriers
Despite the potential, major roadblocks remain. Local zoning laws often discriminate against manufactured and modular homes, favoring conventional single-family housing. Financing challenges persist, as outdated lending regulations still treat manufactured housing as personal property rather than real estate, making it harder for buyers to secure traditional mortgages. Additionally, infrastructure investment—such as roads, water, and utilities—remains a key hurdle for developing raw land into livable communities.
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However, successful case studies exist. In cities like Austin, Texas, and Phoenix, Arizona, modular and manufactured housing developments have provided affordable, high-quality homes at a fraction of the cost of traditional construction. If the federal government partners with private developers and state agencies, similar models could be scaled nationwide, particularly in regions facing acute housing shortages.
A Federal Housing Revolution?
The Biden administration started the conversation about affordable housing solutions, but real progress depends on meaningful policy shifts. Beyond offering federal land, the government must commit to modernizing zoning laws, reforming financing mechanisms, and incentivizing offsite construction methods. Without these changes, the effort to unlock federal land for housing could stall, as past initiatives have.
As cities struggle to provide affordable options for residents and homelessness rates rise, the need for bold action is clear. Manufactured and modular housing presents a ready-made solution that if given the right support, could help transform federal land into sustainable, cost-effective communities. The land is there, the technology is proven, and the demand is undeniable. The question now is whether policymakers are willing to embrace a modern approach to housing or remain stuck in outdated development models that no longer meet the needs of the nation.
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Gary Fleisher, The Modcoach, writes about the modular and offsite construction industry at Modular Home Source.
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