Assessment of U.S. Manufactured System-built Wooden Homes as an Affordable Housing Alternative for Low-income Households in Developing Countries

Abstract

A considerable portion of the developing world is living in substandard houses. Developed countries like the United States have substantially improved the residential construction sector by engineering new materials and developing efficient systems. Composite materials, factory-built prefabricated houses, advanced production methods, better designs, and access to abundant resources make the U.S. a world leader in the wood construction industry. This research is focused on characterizing the housing market for bottom-of-the pyramid buyers in developing parts of Latin America to give them an affordable yet sustainable alternative to traditional systems. This study attempts to link the capacity of the system-built wood construction sector in the U.S. to urban low-income housing markets in Peru, Ecuador, and Colombia. Case studies and surveys were used to assess key aspects of housing deficits. Our findings indicate that developing products for social housing programs can provide access to potential untapped markets. There is an opportunity to develop economic, sustainable, hybrid housing solutions for low-income households. Existing policies and trade relations would support this development. Current awareness of and perceptions about wood construction are very limited in the region, however. The lack of existing wood construction in these markets indicates a possibility of resistance to acceptance, but also assures no local competition. This research contributes to the opening of new markets for exports of prefabricated wooden buildings in other housing sectors. The same approach can be extended to improve U.S. exports of value-added wood products to Latin America.