• 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
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
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
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Environment

World’s largest oil company reports 25% profit jump as exports via Saudi Arabia’s East-West Pipeline bypass Strait of Hormuz closure
EnergyOil
World’s largest oil company reports 25% profit jump as exports via Saudi Arabia’s East-West Pipeline bypass Strait of Hormuz closure
By The Associated PressMay 10, 2026
20 hours ago
A large oil-exporting hub will be built in the deepwater Gulf of Mexico amid the Iran war—but only because Japan and the White House are paying for it
Energycrude oil
A large oil-exporting hub will be built in the deepwater Gulf of Mexico amid the Iran war—but only because Japan and the White House are paying for it
By Jordan BlumMay 8, 2026
3 days ago
An almond farmer inspects a fruit on a tree.
North AmericaAgriculture
California farmers must destroy 420,000 peach trees after Del Monte closes its canneries and cancels more than $550 million in long-term contracts
By Sasha RogelbergMay 7, 2026
4 days ago
bears
EnvironmentAlaska
Judge allows Alaska wildlife agents to resume shooting bears from helicopters to protect recovering caribou herd
By Becky Bohrer and The Associated PressMay 7, 2026
4 days ago
Debris from the White House East Wing demolition was dumped at a nearby public golf course and contains toxic metals, National Park report finds
PoliticsWhite House
Debris from the White House East Wing demolition was dumped at a nearby public golf course and contains toxic metals, National Park report finds
By Sasha RogelbergMay 7, 2026
4 days ago
ben
CommentaryFood and drink
Magnum owns Ben & Jerry’s. Now it’s destroying what made the brand worth buying
By David Bronner, Michael Bronner and Ryan GellertMay 7, 2026
4 days ago

Most Popular

‘This is the way’: Elon Musk endorses Warren Buffett’s famed 5-minute plan to fix the national debt
Economy
‘This is the way’: Elon Musk endorses Warren Buffett’s famed 5-minute plan to fix the national debt
By Jacqueline MunisMay 10, 2026
1 day ago
OpenAI CEO Sam Altman says Gen Z and millennials are using ChatGPT like a 'life advisor'—but college students might be one step ahead
Tech
OpenAI CEO Sam Altman says Gen Z and millennials are using ChatGPT like a 'life advisor'—but college students might be one step ahead
By Sydney LakeMay 10, 2026
1 day ago
Red flag test: former CEO explains why he rejects job candidates who say they can start right away
Success
Red flag test: former CEO explains why he rejects job candidates who say they can start right away
By Orianna Rosa RoyleMay 9, 2026
2 days ago
'Employers are increasingly turning to degree and GPA' in hiring: Recruiters retreat from ‘talent is everywhere,’ double down on top colleges
Future of Work
'Employers are increasingly turning to degree and GPA' in hiring: Recruiters retreat from ‘talent is everywhere,’ double down on top colleges
By Jake AngeloMay 9, 2026
2 days ago
Trump thinks he's flying to Beijing with leverage. China spent 6 years making sure he doesn't have any
Commentary
Trump thinks he's flying to Beijing with leverage. China spent 6 years making sure he doesn't have any
By Steve H. HankeMay 10, 2026
1 day ago
Ted Cruz says the quiet part out loud: Trump accounts are Social Security personal accounts as GOP senator reveals 'dirty little secret'
Politics
Ted Cruz says the quiet part out loud: Trump accounts are Social Security personal accounts as GOP senator reveals 'dirty little secret'
By Jason MaMay 9, 2026
2 days 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.