• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Environmentaffordable housing

Housing activists clash with environmentalists over mass timber factory homes: ‘We have to do this’

By
Claire Rush
Claire Rush
and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
Claire Rush
Claire Rush
and
The Associated Press
The Associated Press
Down Arrow Button Icon
January 28, 2023, 10:18 AM ET
Mass timber affordable home prototypes are shown at the Port of Portland in Portland, Ore. on Friday.
Mass timber affordable home prototypes are shown at the Port of Portland in Portland, Ore. on Friday. Claire Rush—AP Images

Inside a warehouse at the industrial Port of Portland lies what some believe could be the answer to Oregon’s housing crisis — a prototype of an affordable housing unit made from mass timber.

Once mass-produced at the factory being planned at the port, the units ranging from 426 square feet (40 square meters) to 1,136 square feet (106 square meters) could be deployed across the state to be assembled in urban and rural communities alike, potentially alleviating a critical housing shortage that has driven Oregon’s high rates of homelessness.

“I can’t wait to see these homes rolling down the road to those communities who need them right now,” said newly inaugurated Democratic Gov. Tina Kotek, who visited the prototypes Friday. “We have to do this day in and day out in order to meet the goals of providing enough housing for every Oregonian in this state. Because that is the long-term solution to end homelessness.”

On her first full day in office earlier this month, Kotek signed an executive order setting a new housing construction target of 36,000 units per year — an 80% increase over current production — in a bid to address the state’s housing shortage.

Mass timber has yet to be widely adopted for affordable housing construction. While Oregon officials are seeking to change that, some environmental groups have expressed concern that increased logging could lead to deforestation if not managed sustainably, which could add to global warming.

Mass timber is made from layers of wood that are stacked, often in perpendicular layers, then compressed and fastened together to make large panels or beams. Already popular in Europe, where it was developed in the 1990s, mass timber is gaining ground in the U.S. The tallest mass timber building in the world, the 25-story Ascent MKE building, opened in Milwaukee last summer, surpassing Norway’s 18-story Mjostarnet tower.

Proponents of mass timber say it uses less energy and emits less carbon than concrete and steel. They also claim it can help reduce wildfire risk, as the material can be made of the smaller trees in a forest’s underbrush. And they point to the rural jobs the industry can create.

The Oregon Mass Timber Coalition received a $41 million federal grant last year to help finance the construction of the housing factory at the Port of Portland. Members of the coalition, which is made up of government agencies and Oregon universities, say the factory would make it easier to produce prefabricated homes.

“The beauty of it is, you can cut the openings required for electrical and plumbing and stuff like that,” said Iain MacDonald, director of the TallWood Design Institute, a member of the coalition. “And you can do all that on a computer-controlled machine in the factory. Then when you get to the job site, it’s a really fast assembly. It’s basically an assembly operation rather than a construction operation.”

The TallWood Design Institute is a collaboration between the University of Oregon and Oregon State University.

Producing more factory homes also would allow the state to ramp up housing despite a labor shortage that’s seized the manufacturing and construction industries, MacDonald said.

But some environmental groups say cutting down more trees will release more carbon and reduce forests’ ability to absorb carbon from the atmosphere.

“The business has gone toward clear cutting, spraying, replanting and cutting them down 35 years later,” said Sean Stevens, executive director of conservation organization Oregon Wild. “When you do that 40-year rotation, you never let them get to that point where they could really contribute to storing more carbon. You’re treating it like a crop at that point.”

Environmental groups have also pushed back on the idea that cutting younger trees will mitigate wildfire risk.

“The reason we’re having big fires today is extreme fire weather that is triggered mostly by climate change, high winds, hot temperatures, low humidity,” said Dominick DellaSala, chief scientist at conservation organization Wild Heritage. “I think there’s some credibility with taking smaller trees, but it isn’t going to solve the fire problem.”

Some wildfire victims, however, are set to directly benefit from the units. The first completed prototype will go to a couple, Barbara and Scott Benedict, who lost their home in the 2020 Labor Day wildfires that devastated southern Oregon.

“You can’t really say what it means to you,” Scott Benedict said of the new home, which is expected to be delivered to his property in the small town of Otis a few months from now. “We’ve been without a home for 2 1/2 years.”

Affordable housing developers say that using mass timber will allow them to move quicker to rebuild after crises like wildfires and to address systemic issues like the housing shortage.

Ernesto Fonseca, CEO of Hacienda CDC, the Portland nonprofit that worked on designing the prototypes at the city’s port, said it took about six weeks to build six model units. When the factory becomes fully operational, Fonseca estimated it could produce four to six units per day, compared to three to four years for a more traditional project.

“The most significant aspect of this is speed,” Fonseca said. “Rapid rehousing became our driving principle.”

The units will initially range in price from $200,000 for a studio to about $400,000 for a three-bedroom unit, according to Fonseca. He said that he expects prices to go down once the factory is up and running a few years from now. The median sale price of a home in Oregon was $473,400 as of December, according to the online real estate brokerage site Redfin.

Oregon is short 110,000 housing units and needs to build more than a half-million homes over the next 20 years in order to keep up with demand, officials have estimated. The goal of building 36,000 new homes per year outlined in Kotek’s executive order would allow the state to meet that target. Housing advocates have welcomed the order but say that removing bureaucratic red tape will be key to making sure that quota is met.

Learn how to navigate and strengthen trust in your business with The Trust Factor, a weekly newsletter examining what leaders need to succeed. Sign up here.
About the Authors
By Claire Rush
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon

Latest in Environment

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
Fortune Secondary Logo
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Environment

exxon
LawDefamation
Exxon can sue California’s AG for defamation over recycling comments, judge rules
By Janie Hair and The Associated PressFebruary 26, 2026
4 days ago
Performers in Morph suits on a football field pre-match
EuropeLetter from London
‘I sell millions of Halloween costumes to Americans. Mr. President, here’s my takeaway from the wild tariffs ride’
By Kamal AhmedFebruary 26, 2026
5 days ago
snow
North AmericaThe Weather Channel
After the Snow Day, the Sick Day: One in 6 New York City teachers called out of work on Tuesday
By Jake Offenhartz, Mike Catalini and The Associated PressFebruary 24, 2026
6 days ago
boston
North AmericaMedia
32 inches of snow were enough for the Boston Globe to call off print for the first time in 153 years
By Audrey McAvoy and The Associated PressFebruary 24, 2026
6 days ago
Photo of fragments of plastic on fingers
HealthHealth
Scientists are pushing back on warnings that microplastics damage your health, saying people are just obese and calling some studies ‘a joke’
By Catherina GioinoFebruary 24, 2026
7 days ago
AIchief executive officer (CEO)
Sam Altman gets defensive about AI’s massive electricity usage: ‘It also takes a lot of energy to train a human’
By Marco Quiroz-GutierrezFebruary 24, 2026
7 days ago

Most Popular

placeholder alt text
Middle East
U.S. military gives Iran a taste of its own medicine with cheap copycat Shahed drones, while concern shifts to munitions supply in extended conflict
By Jason MaMarch 1, 2026
1 day ago
placeholder alt text
Success
MacKenzie Scott's close relationship with Toni Morrison long before Amazon put Scott on the path to give more than $1 billion to HBCUs
By Sasha RogelbergMarch 1, 2026
1 day ago
placeholder alt text
Economy
Your grandparents are the reason the U.S. isn't in a recession right now. That won't last forever
By Eleanor PringleMarch 1, 2026
2 days ago
placeholder alt text
AI
American schools weren’t broken until Silicon Valley used a lie to convince them they were—now reading and math scores are plummeting
By Sasha RogelbergMarch 1, 2026
1 day ago
placeholder alt text
Middle East
As Iran attacks Dubai, the tax-free haven for the global elite could see 'catastrophic' fallout — 'this can also send shockwaves globally'
By Jason MaMarch 1, 2026
1 day ago
placeholder alt text
Health
Gen Z men are eating ‘boy kibble,’ the human equivalent to dog food, to load up on protein cheaply
By Jake AngeloMarch 1, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.