BOXABL Casita California Deliveries to Surge Following 75% Inspection Reduction

California Department of Housing and Community Development reduces inspection of BOXABL by 75% for each Casita Studio

BOXABL Inc., a leader in factory-built modular solutions, has announced that the California Department of Housing and Community Development reduced the inspection burden on BOXABL Casitas shipped anywhere in the state of California. This arrangement streamlines the delivery process for BOXABL to California properties.

Under California Title 25 §3032, new models produced at a manufacturing facility are initially subject to 100% inspection. Specifically, the first ten units of a new model must be fully inspected and approved before any reduction in inspection frequency can be considered. After working closely with HCD, now only 25% of each BOXABL Casita Studio will require state inspection. This translates into units reaching the state quicker and getting into the hands of customers with increased efficiency.

“Since we received our approval as a ‘Commercial Modular Manufacturer’ from the State of California last month, our team has demonstrated the quality of our products and the stringent quality controls we have in our production process. We have worked closely with state officials to streamline the process of getting our innovative solutions delivered and assembled by reducing state-level inspections to 25% of each of our Casita Studios,” said Martin Costas, chief financial officer of BOXABL. “Reducing inspections by 75% will help BOXABL accelerate our growth in the largest housing market in country.”

California faces a housing shortage, with HCD estimating a need for 2.5 million new homes over the current planning cycle, which looks forward through 2032, according to the California HCD Annual Report Dashboard. This official target accounts for projected household growth, existing overcrowding, low vacancy rates and affordability challenges across income levels. Some sources within the state cite a broader ongoing shortage of around 3 million units as of 2025, according to McKinsey.

In parallel, Accessory Dwelling Units (ADUs), such as the BOXABL Casita Studio, have emerged as a potential solution, with permitting surging due to statewide reforms. In 2023, California permitted almost 27,000 ADUs – representing more than 21% of all new housing units approved statewide that year – according to HCD data. This marked a dramatic 20-fold increase from 1,336 permits in 2016, and trends indicate continued strong growth with projections for at least 10% annual increases, potentially exceeding 30,000 units yearly in high-demand areas.

“We believe these dynamics present a significant opportunity for innovative, factory-built modular solutions, like BOXABL’s Casita and larger models, which align perfectly with California’s push for faster deployment, to help close the supply gap efficiently and cost-effectively,” Costas added.

In related news, BOXABL continues its ongoing progress toward its proposed merger with FG Merger II Corp., a publicly traded special purpose acquisition company. The proposed merger, which remains subject to customary approvals, could provide BOXABL with enhanced resources to scale production and expand its impact across diverse industries.

Information for this article was sourced from BOXABL.