WHY PRIVATE LENDERS ARE EMBRACING MODULAR CONSTRUCTION
Alternative lenders are seeing an increase in multifamily deal prospects as institutional lenders tighten their underwriting standards or sit on the sidelines. Not every transaction or development proposal passes muster, however. One strategy that is getting a fair amount of interest from these lenders is modular construction. Pre-fabricated modules are cost-effective and allow for faster construction times. They are also highly flexible, which helps mitigate risk and allows for quick adjustments to changing conditions. MORE FROM MULTI-HOUSING NEWS
The case for modular construction in the US is clear...Industrialized production methods allow companies to optimize material utilization, reducing waste. Fitting modules together on site is quicker and requires less labor than traditional construction methods. McKinsey analysis suggests that modular techniques could allow home builders to accelerate end-to-end project timelines by 20 to 50 percent while reducing costs by up to 20 percent. Moreover, modular projects may be easier to execute on urban job sites since they require less space for the storage and preparation of materials...Despite these apparent benefits, the approach has struggled to gain acceptance in North America. READ MORE
MODULAR BASICS: MODULAR MATH 101
In modular construction, single-family and multifamily homes, as well as commercial properties, are built offsite (typically indoors to eliminate weather-related delays), then delivered to a site and set on a foundation...But while saving time with modular construction is appealing, some property owners and developers might be left wondering if time saved translates into money saved.
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INDIANAPOLIS COMPANY HELPS FIND JOBS FOR FORMERLY INCARCERATED
MODULAR MARKET: INDIANAPOLIS COMPANY SEES SIGNIFICANT OPPORTUNITY IN AFFORDABLE HOUSING
A 2-year-old company on the east side has its sights set on tackling central Indiana's affordable housing problem through modular construction.
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RE-ENTRY PROGRAM PROVIDES HOPE TO THE FAR EASTSIDE AND BEYOND
$114 BILLION IN MODULAR CONSTRUCTION PREDICTED
Modular multifamily construction—where construction happens primarily off-site—is growing rapidly. One forecast shows that modular construction generally will be a USD $114.78 billion industry by 2028, with a compound annual growth rate (CAGR) of 6.1% between 2021-2028. In 2020 the modular construction industry was valued at $72.11 billion. Another estimate states that this industry will grow faster, to $160 billion by 2023...
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WHY CHOOSE MODULAR CONSTRUCTION?
As every professional in the building industry knows, construction can be a costly and endlessly time-consuming endeavor. Delays are almost more frequent than on-time construction, and can be induced by extensive bureaucratic requirements, weather and other unexpected circumstances, inadequate planning, too few personnel, or a whole host of other causes. MORE FROM ARCH DAILY...
DEMAND FOR PREFABRICATED APARTMENTS CLIMBS AS COSTS BALLOON FOR MULTIFAMILY DEVELOPMENT
Construction of prefabricated homes is ramping up and providing an alternative to traditional multifamily, where the construction process has slowed because of rising costs and supply-chain delays...
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WELCOME TO PREFAB'S MOMENT
The COVID-19 pandemic has turned our world upside down, shifted priorities, and helped push forward many ideas that were once considered “alternative.” Prefabricated building is no exception. As people rush to build larger homes, second homes, or additions to existing homes, demand is spiking for what are often considered faster, cheaper, more flexible, and more predictable building methods...MORE FROM ARCHITECTURAL DIGEST
THE FUTURE OF MODULAR AFFORDABLE HOUSING
The need for new apartment units is increasing in the Northeast and across the nation. High construction costs, however, present a major barrier to creating enough affordable housing supply. Modular homes have the potential to reduce construction timelines and costs, making them ideal for affordable housing solutions. These buildings have caught on in Japan, Scandinavia and other parts of the world, but not in the U.S. What’s holding us back? MORE FROM JP MORGAN CHASE
IS MODULAR CONSTRUCTION THE FUTURE OF MULTIFAMILY HOUSING?
If you didn't know anything about its history, the building at 193 Henry Street on Manhattan's Lower East Side may seem like your average new luxury condo on the block. However, there is something quite unique about how it was built that just might spark a trend in the city. As first reported by Curbed earlier this month, the six-story building named Idylls recently topped out, becoming the first luxury condo in Manhattan to be built using modular construction....MORE FROM COOPERATOR NEWS
MULTIFAMILY MODULAR CONSTRUCTION TOOLKIT
The high cost of developing multifamily housing is a major contributor to the nation’s affordable housing supply crisis. To try and resolve the lack of affordable housing, various cost drivers throughout the life cycle of a housing development — from pre-development planning and land purchase, to the construction phase, to projected operating expenses — are being re-evaluated to find opportunities for both time and cost savings.
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ONE OF THE LARGEST MODULAR MULTIFAMILY PROJECTS SELLS
OneFive Capital, a Philadelphia-based real estate company, has purchased one of the country’s largest modular multifamily buildings “Next LVL,” a Class A, 281-unit building in the University City neighborhood of Philadelphia for $88 million. OneFive plans to rebrand the development as “SOLO on Chestnut“...
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