Boxabl Secures Key California License, Paving Way for Expansion

LAS VEGAS, NV – December 24, 2025 – By Sharon Henderson

Boxabl Inc., the Las Vegas-based company known for its innovative unfolding homes, has officially secured a “Commercial Modular Manufacturer” license from the State of California. The move marks a critical milestone for the housing startup, opening the door to one of the nation's largest and most heavily regulated markets and signaling a strategic pivot toward commercial applications.

The license allows Boxabl to manufacture and deploy its modular units for commercial use across California, a state grappling with a severe housing crisis and astronomical construction costs. This regulatory green light is seen not just as a victory for the company but as a significant development for the broader modular construction industry, which touts factory-built structures as a faster, more cost-effective solution to traditional building methods.

"This license represents a significant milestone for BOXABL and reinforces our commitment to innovation and regulatory excellence," said Martin Costas, Chief Financial Officer of BOXABL, in a statement. "Securing this approval in California demonstrates the strength of our manufacturing processes and positions us to meet the growing demand for efficient, high-quality modular solutions."

Navigating a Complex Regulatory Maze

Obtaining this license is no small feat. California’s building standards are among the most stringent in the country, and navigating its regulatory landscape is a significant hurdle for any construction firm. The approval comes from the California Department of Housing and Community Development (HCD), the state-level body that oversees factory-built housing.

To earn the license, Boxabl had to prove its manufacturing processes and designs comply with multiple parts of the California Building Standards Code. This ensures that every unit leaving its factory meets rigorous health and safety requirements. Approved modules will now bear an HCD Insignia of Approval, a seal that effectively preempts local building departments from imposing conflicting construction standards on the factory-built portion of a project.

While local jurisdictions will still oversee site-specific work—including foundations, utility hookups, and zoning compliance—the state-level certification dramatically streamlines the path to deployment. It allows for a predictable and standardized manufacturing process, which is central to the modular value proposition of speed and scalability. For Boxabl, this approval serves as a powerful validation of its technology and quality control as it prepares to enter a demanding new market.

A Strategic Pivot Beyond the Casita

The timing of the California license aligns with a broader strategic shift within the company. While Boxabl captured public imagination with its 361-square-foot “Casita” studio home, the company is increasingly focusing on larger-scale and commercial applications. The new license is a direct enabler of this strategy.

CFO Martin Costas alluded to this pivot, noting, "We have recently entered into the commercial applications space following a significant contract signed with an industry leader, and this license is a key enabler for delivering on that opportunity." While details of this major contract remain undisclosed, the move into the commercial sector suggests Boxabl is targeting projects like multifamily housing, workforce accommodations, or temporary facilities—markets where speed and scalability are paramount.

This expansion is further bolstered by the company’s pending merger with FG Merger II Corp. (NASDAQ: FGMC), a special purpose acquisition company (SPAC). The deal, which values Boxabl at approximately $3.5 billion, is expected to close by early 2026 and will take the company public under the ticker symbol “BXBL.” The merger is designed to inject significant capital into Boxabl, providing the resources needed to scale up production from its Las Vegas facilities and execute on ambitious commercial contracts in states like California.

Entering California's High-Stakes Housing Market

Boxabl is entering a market ripe with both opportunity and competition. The West Coast, and California in particular, is the epicenter of the U.S. modular construction boom, with an estimated market size of $7.5 billion in 2024. Decades of underbuilding have created a deep housing deficit, and policymakers and developers are increasingly turning to factory-built solutions.

Industry studies suggest modular construction can reduce project timelines by 30-50% and cut costs significantly, making it an attractive option in a state where traditional construction is notoriously slow and expensive. However, Boxabl is not the only player to recognize this. The California market is home to a growing number of established modular companies, including Factory OS in Vallejo, which specializes in large multifamily projects, and Connect Homes, which offers high-end prefabricated residences.

Boxabl aims to differentiate itself with its unique flat-pack, unfolding design, which simplifies logistics and dramatically reduces on-site setup time. The company’s success will depend on its ability to leverage this technology to compete on price, speed, and quality against a field of increasingly sophisticated competitors.

The Promise and Peril of a Factory-Built Future

Housing policy experts and urban planners widely view modular construction as a critical tool for tackling California’s affordability and supply challenges. The factory-controlled environment allows for higher quality control, less material waste, and a solution to the persistent shortage of skilled construction labor. By shifting work off-site, projects become less susceptible to weather delays and can offer safer working conditions.

Despite the clear advantages, the industry still faces headwinds. Institutional inertia within the construction and finance sectors remains a challenge, as some lenders are hesitant to back projects that deviate from traditional methods. Furthermore, fragmented local regulations and permitting processes can still create bottlenecks, even with state-level approvals in place. Public perception and “NIMBY” (Not-In-My-Backyard) sentiment can also pose obstacles to new developments, regardless of how they are built.

With its California commercial license in hand and a public listing on the horizon, Boxabl has successfully cleared a major regulatory hurdle and positioned itself to capitalize on immense market demand. The company's journey will now be a crucial test of whether innovative technology and a scalable factory model can truly reshape the landscape of American housing and commercial development.