Smarter Way to Shelter the Homeless: Modular Housing That Works

June 26, 2025

The homelessness crisis is growing in cities across the country, and traditional housing methods are too slow, too expensive, and often out of reach. Modular housing is changing that.

What started in London in 2015 has gained traction in the United States, especially during the early days of the COVID-19 pandemic. With stay-at-home orders in place, cities needed fast and affordable ways to provide shelter for people with nowhere to go. Modular housing met that challenge, and it continues to prove its value today.

Why More Cities Are Choosing Modular Units

Modular housing isn’t just a budget-friendly workaround. It’s a tool that solves real problems for cities under pressure. Here’s why it’s becoming the go-to solution for municipalities, nonprofits, and emergency response teams:

• Quick Setup: Unlike traditional builds that can take months or years, modular units are built in factories and delivered ready to assemble. Many can be up and running in a matter of days.
• Lower Costs: The controlled production environment streamlines labor and material usage, helping reduce total build costs.
• Scalable and Mobile: Need to expand capacity? Add more units. Need to relocate a community due to zoning or land use changes? Modular structures can move with you.
• Safe, Private Living Spaces: These aren’t temporary tents or barracks. Units are designed with comfort and safety in mind, meeting local building codes and offering individual privacy.

When urgency meets budget constraints, modular housing provides a middle ground that works.

More Than a Crisis Fix

While modular housing gained attention during COVID-19, it’s also being used in disaster relief. Wildfires, hurricanes, and floods can displace thousands of people with little warning. Modular units allow aid organizations and governments to move quickly and house people safely.

The Red Cross has long used modular shelters for disaster victims. More recently, nonprofits and city agencies, including the YMCA, are turning to modular structures to serve low-income neighborhoods and transitional housing programs.

Proof in Action: Cities That Are Making It Work

Across the country, modular housing communities are already in place and making a difference.>

• San Francisco: The Tahanan Supportive Housing complex includes 70 modular units built specifically for people transitioning out of homelessness. Each unit comes fully furnished and provides residents with a sense of independence and dignity.
• Los Angeles: Faced with a growing homelessness crisis, the city has built multiple modular housing villages. These communities provide secure living spaces while connecting residents to social services.
• Austin, Seattle, Portland, Charlotte, and Oahu: These cities have adopted modular construction as part of their long-term housing plans. Some use them for transitional housing, while others have created tiny home villages for individuals who need support rebuilding their lives.

These aren’t experimental projects—they’re real communities with measurable success in helping people off the streets.

Built With Sustainability in Mind

Speed and cost aren’t the only reasons modular housing is gaining traction. Sustainability plays a major role, too.

Compared to traditional construction, modular building methods:

• Use fewer raw materials
• Produce less on-site waste
• Reduce energy consumption during the build process
• Cause minimal disruption to neighborhoods or the environment

Because the units are built off-site in factory settings, quality control is higher and material usage is more efficient. Cities aiming to reduce their environmental footprint can benefit from incorporating modular strategies into their affordable housing goals.

Overcoming Outdated Perceptions

In the past, some people viewed modular housing as unattractive or harmful to property values. But that stigma is fading.

Today’s modular homes are thoughtfully designed, well-constructed, and made to blend into existing neighborhoods. They look and feel like real homes—because they are.

Not Just a Trend, but a Long-Term Tool

There’s no one-size-fits-all solution to homelessness, but modular housing offers something most cities need: speed, flexibility, and results. These units provide safe, clean shelter where it’s needed most, without long construction delays or sky-high budgets.

With homelessness continuing to climb and emergency events becoming more frequent, modular construction gives cities and states a chance to act quickly, thoughtfully, and sustainably. It doesn’t solve every problem, but it helps fill a critical void—and does so at scale.

Work With Texas State Modular

At Texas State Modular, we specialize in high-quality modular units for cities, nonprofits, and emergency relief agencies. Our structures are durable, clean, and designed to meet the real needs of communities.

Whether you’re planning for disaster response or building long-term housing programs, we can help you find the right solution on your timeline and within your budget.

Call today for a free quote or consultation. We’re here to support your shelter goals, from concept to delivery.