An excellent unintended consequence of forcing builders into modular housing might be a much more robust modular housing market. Sort of like Tesla starting with higher cost Roadsters and Model S cars until there is scale to compete at volume. It would be terrific to see some productivity gain in construction, which as actually declined since 1987. See the Single-Family graph here: https://www.bls.gov/productivity/highlights/construction-lab...
It's worth also noting that despite the drama, Costco is not looking to lose money on these. So the apartments will be nice enough to rent. Nimbys tend to forget the discipline of the market, especially in their talking points.
Clayton, a leading single-family home builder, recently made big environmental news by deciding to convert nearly all of the 42,000 modern manufactured homes it builds annually to be certified ENERGY STAR and Zero Energy Ready Homes (ZEHR). These certifications mean that its manufactured homes will be much more efficient, save homeowners money on their utility bills (up to 50%) and provide premium energy-efficient appliances that are often considered unaffordable to the average family.
Clayton’s switch to ZERH also means nearly all of its homes now come with a heat pump water heater (HPWH), which likely represents the single largest procurement of HPWHs in the history of the technology. To put it in context, the entire HPWH market in 2022 shipped 141,000 units, and Clayton alone will increase this total by 30%!
It's worth also noting that despite the drama, Costco is not looking to lose money on these. So the apartments will be nice enough to rent. Nimbys tend to forget the discipline of the market, especially in their talking points.