Is Modular Construction the Best Solution for Affordable Housing?

The affordable housing crisis has been making national headlines for years, as home costs have skyrocketed across the country. While many are struggling to find affordable living options, the industrialized construction community has suggested that modular housing could be a potential solution.

Modular construction has been gaining widespread attention for its potential to assist in fast, affordable homes and housing developments. In fact, the Biden administration explicitly included modular housing as part of his Housing Supply Action Plan, which aims to develop approximately 500,000 multifamily units over the next decade to boost the affordable housing supply. 

In this article, we examine the defining characteristics of modular housing that render it a viable and effective solution for addressing the pressing issue of the affordable housing crisis.

4 ways modular construction could help solve the affordable housing crisis

1) Accelerated construction time

One of the most significant benefits of modular construction is that it typically takes less time to construct a modular home than a traditional home — around 30-50% less time, according to the data.

Module production in a factory setting can happen concurrently with site preparation and construction of the foundation, streamlining timelines. Because the mods are built inside a factory, weather delays don’t impact this part of production. Then, we transport the modules to the build site, where buildings can be assembled in a matter of weeks. 

Additionally, in most cases, the permitting process is also accelerated because module review happens on a state level, rather than having to wait for approval from the city, county, or other authorities having jurisdiction (AHJ). 

The faster occupants can move in and start paying rent, the more quickly developers receive their return on investment, making building affordable housing developments more appealing. And, the more developers building affordable homes, the faster we can make a dent in the housing crisis.

2) Reduced Costs

Modular construction can be considerably more affordable than traditional construction for several reasons. 

For one, it reduces the need for on-site labor by constructing the units in a factory. Factory-built modules allow for assembly-line efficiencies, which cut labor costs and other expenses such as reworks, waste, and theft. Also, producing large volumes of similarly built modules in a single setting allows for purchasing materials in bulk, creating economies of scale.

Developers can pass these cost savings on to tenants, making equally — or, in many cases, higher — quality projects more affordable. 

3) Energy Efficiency

Another benefit of modular homes is their energy efficiency. They can be outfitted with energy-efficient features, including high-performance insulation, double-paned windows, and sustainable materials. This means lower monthly energy bills, which can be a massive benefit to occupants seeking more affordable living options.

Modular homes can also be fitted with solar panels and other clean energy technologies, further reducing carbon footprints, and subsequently monthly energy costs. Not only is this environmentally responsible, but it is also cost-effective since savings from lower bills over time can help to offset the initial costs of installation.

4) Flexibility of Design

Modular homes are not only affordable and of exceptional quality, but they’re also flexible in design. Builders can customize each project to meet its specific requirements. That means modular construction methods can meet the needs of many different affordable housing developments, whether they’re in a congested urban center or remote location. 

Builders can use modular for dormitory-style living, a community of individual homes (or tiny homes!), or multi-family developments. The specifications of each can be suited to the particular needs of the occupants. The modular community has proved how customizability is well-suited to affordable housing applications, from Horizon North’s rapid-response modular supportive housing to Volumetric Building Companies’ Veterans Village. Builders can even incorporate existing structures or materials — such as shipping containers.

Flexibility in design breeds affordability, scalability, and ease of adoption, making modular an excellent potential solution to the affordable housing crisis.

Transporting Modular Buildings and your Affordable Modular Housing Units

With time to occupancy being one of the main benefits of modular, the seamless transporting of modular buildings is the linchpin to on-time construction. At Stream Modular, you can rest assured that your project will be on time, mitigating transportation risks for your modular construction project logistically. By entrusting us with your modular building transportation and delivery, you can avoid budget overruns and potential catastrophic logistics consequences. 

Our experienced team understands the criticality of timely and secure transportation logistically, ensuring the smooth flow of modules, pods, and panels to your construction site. Choose Stream Modular for reliable logistics solutions that prioritize your project’s transport success. Learn more about how we can help with your modular construction transportation needs.

Stream Modular is a transportation logistics company specializing exclusively in modular construction. We help modular manufacturers and builders transport mods, pods and panels so they arrive on time and safely to the build site.

Read more:

• Startup Modular Factories Should Consider Logistics in Operational Decisions
• 3 Pro Tips for Offloading Prefabricated Modular Buildings More Efficiently
• 4 Alternative Ways to Finance Industrialized (Modular) Construction