Collins: How do we build affordable for-sale housing?

The rising cost of homeownership has placed affordable for-sale housing at the center of housing policy discussions nationwide.

Building homes that middle- and low-income buyers can afford requires more than low prices — it demands thoughtful design, innovative construction methods and navigation through regulatory and financial obstacles. “Affordable by design” is gaining traction as a sustainable solution. Here’s how builders, cities and developers are making it work.

Affordable for-sale housing by design means creating homes that are inherently more affordable, not through subsidies or discounts, but through smart planning. This includes building smaller units, simplifying architectural features and using efficient construction methods. The goal is to deliver housing that meets people’s needs at a price they can realistically afford.

One major key to affordability is cutting construction costs. Two methods that are gaining traction are prefabricated construction and 3D-printed homes. Prefabricated or modular constructed homes are built off-site in a factory and assembled on location to save money on labor and materials, shorten construction time and reduce waste.

In 2019, I had the opportunity to tour Factory OS and see how this all works firsthand. I was blown away by what I witnessed. All the prefabricated walls were on hydraulic lifts. Two workers were able to move entire walls throughout the factory. Everything was so efficient, with no wasted materials or labor.

Housing made with 3D printing is still an emerging industry. The first generation of these houses looked more like igloos, but new technology has made this a viable option. Builders are investing in this technology that uses automated machines to “print” concrete walls, cutting labor costs and accelerating timelines. These techniques can reduce costs by 10–30%, making the final home price more attainable for first-time buyers.

Additional barriers to affordable home construction include local zoning and land use regulations. High land prices make it difficult to build lower-priced homes without subsidies or density increases. Skilled labor is in short supply, increasing project costs and timelines. A lack of stable financing options for non-traditional or small-scale housing projects. However, the fiercest resistance comes from NIMBYism (Not In My Backyard). Community resistance to affordable housing projects often slows down or kills development efforts.

To build affordable for-sale housing at scale, the focus must shift to cost-effective construction, smart design and breaking down regulatory barriers. When done right, designing for affordability doesn’t mean cutting corners — it means building smarter and more efficiently.

For more than 50 years, the way we build housing has stayed largely the same. But now, successful and innovative models are emerging across the country. The next big challenge is scaling these solutions to reduce overall costs for everyone.

San José Spotlight columnist Neil Collins is CEO of the Santa Clara County Association of Realtors, a trade association representing more than 6,000 real estate professionals in Santa Clara County and surrounding areas. His columns appear every fourth Thursday of the month. Contact Neil at [email protected].