The Michael Schmidtmechanics of the homebuilding industry haven't changed much since the middle of the last century. What has changed, though, is its labor productivity — and not for the better. These days, building a home takes almost twice as long as it did just a few decades ago. Those slowdowns are only adding to the nationwide affordable housing crisis.

Modular housing, or the process of manufacturing the components of a home in a factory and then assembling it onsite in as little as a few hours, could possibly solve the homebuilding industry's productivity problem. The idea's been around for decades, but as firms look to minimize their labor costs and carbon footprints, it's catching on for good. Today, TIME Senior Economics Correspondent Alana Semuels joins us to talk about how modular housing is shaping up to be the future of the residential construction industry.

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