Latest news with #modularhousing
CTV News
01-06-2025
- Business
- CTV News
‘What we can offer is speed': Modular housing business owner on tackling supply
Inside Ironwood Manufactured Homes' factory in Woodstock, N.B., workers pump out a house a week. Owner Mark Gaddas points to a home that's three days into construction. The drywall is being installed, which he says typically wouldn't happen in on-site construction until the house is weather-tight. It's one advantage to building indoors. 'That's one of the reasons why we can speed things up over time,' he said. Founded in 2018, Ironwood is a few months away from moving into a new factory that's ten times its current size. There, they will be able to build more houses and add efficiencies, such as automation. Provincial and federal governments invested a combined $2.5 million in repayable loans to help. Modular Housing (Sarah Plowman, CTV News) 'We strictly build custom modular houses right now. The new facility will give us the capacity to get into multi-residential,' said Gaddas, noting workers could build hotels, universities and dormitories. 'We'll have anywhere from ten to fifteen houses under construction at all times.' Factory-built housing makes up a small percentage of Canada's housing market, but Prime Minister Mark Carney has said prefabricated and modular housing are the future. He has pledged $25 billion in financing to prefabricated home builders as his government aims to double the pace of Canada's home construction. Carney has also pledged to order housing units from manufacturers in bulk to create sustained demand. 'It's not the silver bullet to the housing crisis,' said Gaddas. 'It's part of the solution. It isn't the ultimate solution. What we can offer is speed.' At the University of New Brunswick's Off-site Construction Research Centre, Director of Innovation and Operations Brandon Searle notes how off-site construction has been around for more than a century and often increases in popularity following or during a crisis. He believes prefabricated and modular housing are a piece of the housing crisis puzzle. 'I'd say they're a large piece,' Searle said. Searle explained this kind of construction isn't necessarily cheaper than traditional homes, but builds happen faster, with fewer workers and less waste. Costs are also more certain, since a lot of decisions happen before construction starts. The industry faces barriers to scale up, Searle notes, such as high capital investment costs, disjointed policies across jurisdictions and the need for demand that businesses can count on. Modular Housing (Sarah Plowman / CTV News) 'Creating that sustainable demand is a role that the government can play, but also incentivizing them to invest in innovation and automation,' he said. Securing financing or insurance can also be a challenge, and it's something the research centre is looking into to figure out what needs to change and what role Ottawa can play in underwriting projects. Kevin Lee, CEO of the Canadian Home Builders' Association, notes the main reason not many of its members build prefabricated and modular homes is because the traditional house construction industry is already efficient as is and is made of mostly small crews. 'That really has to do a lot with the boom-and-bust nature of the housing industry,' Lee said. 'The system kind of operates like a factory but instead of the house moving down the assembly line, the workers move through the house, but do the same repetitive activities, house to house.' Lee says it's more labour intensive but requires less overhead costs. Policy changes are needed for factory-built housing to become more widespread, including consistent rules around the planning and approval process, he adds. 'At the municipal level, you cannot build the same house city, to city, to city, because every city has different bylaws, zoning requirements, interpretations of the exact same provincial building code, which vary city to city, and sometimes within the city, which makes doing anything at scale incredibly difficult,' Lee said. Borrowing best practices Ironwood's new factory will add automation, including a saw to cut lumber and possibly a machine that, with the push of a button, installs nails or screws. To borrow best practices, Ironwood is looking to European countries, such as Sweden, where modular housing reshaped the homebuilding industry. 'The automation that they have is much further ahead than where we are,' said Gaddas, adding there's one manufacturer in Sweden with 'a zero-labour line.' 'You have robots essentially building all the compartments of the houses that we're talking about.' Mathieu Laberge, Chief Economist and Senior Vice-President at the Canada Mortgage and Housing Corporation, said while this kind of housing is marginal in Canada, 90 per cent of homes in Sweden are made with some off-site component. It didn't happen overnight. Laberge explained that in the 1960s, Sweden decided it was the technology of the future and the government began funding projects to create a baseline demand. 'Now, they don't need any more government support, because it's a self standing industry. And that's the point we're at in Canada,' Laberge said. Laberge and Gaddas point out there's a lot of misconceptions around modular housing, like assuming it's one-size-fits-all and that these houses can't be customized. 'That's not true,' said Laberge. 'They're good-looking, they're high-quality, well-insulated, weather-appropriate for Canada. And so, these are all misconceptions that we need to overturn.'
Yahoo
29-05-2025
- Business
- Yahoo
Multifamily Modular and Prefabricated Housing Construction Market Report 2025: Key Players like ATCO and Greystar are Leveraging Innovations for Affordable Housing Solutions Amid Rising Global Demand
The multifamily modular and prefabricated housing construction market is set for robust growth, projected to rise from $52.12 billion in 2024 to $73.84 billion by 2029, driven by urbanization, affordability, and sustainability. . Multifamily Modular and Prefabricated Housing Construction Market Dublin, May 29, 2025 (GLOBE NEWSWIRE) -- The "Multifamily Modular and Prefabricated Housing Construction Market Report 2025" has been added to offering. The multifamily modular and prefabricated housing construction market is on a significant growth trajectory, with market size expected to expand from $52.12 billion in 2024 to $55.73 billion in 2025, reflecting a compound annual growth rate (CAGR) of 6.9%. Notable factors contributing to this surge include urbanization, cost efficiency, sustainable practices, and population growth. The market size is anticipated to reach $73.84 billion in 2029, driven by ongoing urban density, affordable housing needs, innovation in design, and advances in off-site construction and assembly. Modular construction's proven benefits, such as cost and time savings, waste reduction, and enhanced safety, are central to market growth. The Modular Building Institute reported in 2023 that modular industry projects accounted for 6.64% of new construction starts, with a value of $14.6 billion. These advantages make modular housing increasingly attractive to multinational construction companies, poised to boost revenues and expand the market's reach. Growing demand for affordable housing further propels the multifamily modular and prefabricated housing market. The Office for National Statistics indicated increased housing affordability in 2023, showcasing modular construction as a viable solution. Government initiatives globally aim to promote sustainable building practices, with the Singapore government's endorsement of Prefabricated Prefinished Volumetric Construction (PPVC) being a notable example. Such regulatory frameworks underscore the market's alignment with environmental sustainability goals. Major firms are spearheading innovative strategies within this market. Greystar Real Estate Partners launched its Modular Attainable Housing Brand in June 2023, focusing on providing affordable housing through modular solutions. This strategic initiative exemplifies how companies are meeting market demands while sustaining profitability through innovative construction techniques. In a strategic move to broaden its modular product offerings, ATCO Structures and Logistics Ltd acquired NRB Modular Solutions for $40 million in September 2024. This acquisition emphasizes ATCO's commitment to expanding its market presence across various sectors, including commercial and residential solutions. Key players in this dynamic market include Laing O'Rourke, ATCO Ltd., Algeco UK Limited, Ritz-Craft Corporation, and Connect Homes LLC, among others. Asia-Pacific currently leads the market, with Africa projected as the fastest-growing region. The market encompasses diverse regional and international players, covering regions such as Asia-Pacific, Europe, the Americas, and Africa. Multifamily modular and prefabricated housing construction provides essential market statistics, including industry size, regional shares, and key trends. The market value, derived from sales and services, indicates a robust demand for innovative construction solutions to meet growing housing needs. This sector's expansion is marked by strategic partnerships and adherence to evolving regulatory standards, ensuring continued growth and sustainability. Key Attributes: Report Attribute Details No. of Pages 175 Forecast Period 2025 - 2029 Estimated Market Value (USD) in 2025 $55.73 Billion Forecasted Market Value (USD) by 2029 $73.84 Billion Compound Annual Growth Rate 7.3% Regions Covered Global Scope: Markets Covered: By Type: Permanent; Relocatable By Material: Steel; Precast Concrete; Wood; Plastic; Other Materials Subsegments: By Permanent: Multi-Story Modular Apartments; Permanent Prefabricated Units; Infill Housing Units By Relocatable: Temporary Housing Units; Relocatable Modular Homes; Site Offices and Temporary Accommodation Units Companies Featured Laing O'Rourke ATCO Ltd. Algeco UK Limited Ritz-Craft Corporation Red Sea International Company Pleasant Valley Homes Inc. Connect Homes LLC Kiss House Marlette Homes Inc. Guerdon LLC Northstar Systembuilt Inc. Cube Haus Blu Homes Inc. Plant Prefab Inc. Simplex Homes Inc. Revolution Precrafted Properties Limited Pine Grove Homes Inc. KLEUSBERG GmbH & Co. KG Blokable Inc. New Era Building Systems Inc. nHouse Limited PopUp House Mod-U-Kraf Homes Inc. Stratford Homes LLC For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment Multifamily Modular and Prefabricated Housing Construction Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900
CBC
15-05-2025
- Business
- CBC
In Canada's housing crisis, are modular homes a cheaper and faster solution?
When a church in Toronto's west end was converted into affordable housing nearly 15 years ago, the group behind the project was already thinking ahead. Andrea Adams, the executive director of the non-profit developer St. Clare's, said she was "daydreaming" about what could be built on the yard next to the 20-unit building on Ossington Avenue. She was eventually introduced to Assembly Corp., a company that builds mass timber modular housing, around the same time that the city was looking for proposals for "shovel ready" affordable housing projects. St. Clare's had the land, the contractor — and, more importantly, the will to get the project done. The result is an eye-catching, three-storey building that's now home to more than two dozen people who were experiencing homelessness. "It's a very assertive project," Adams said in her office next to the L-shaped motel-style structure. Its residents, she said, "would have been people that were living in shelters or couch surfing or living in tents." The project is a small step toward addressing the cost-of-living problem in a province that saw 80,000 people experience homelessness in 2024, according to an Association of Municipalities of Ontario report. Advocates and experts say while there is no single solution to the homelessness crisis that's compounded by mental health and addictions issues, prefabricated homes could play a significant role in addressing the shortage of affordable and supportive housing. "The modular definitely helps because the faster construction is, the least expensive it is," Adams said. WATCH | How modular housing could help solve Ontario's housing crisis: How modular housing could help solve Ontario's housing crisis 2 months ago Duration 2:36 Ontario's housing crisis has been an ongoing issue for years, and some experts say modular housing could play a crucial role in addressing the problem. The prefabricated buildings are built in factories and assembled on-site. CBC's Ali Chiasson has more. The 25-unit complex on Ossington was erected in just 21 working days and overall construction took eight months. The size of each small studio is around 220 square feet, with a bathroom, a kitchen and a living room. The modern, light brown exterior with large windows and shading fins draws the attention of passersby. The structure "uses every square inch of property available to it and yet still looks beautiful," Adams said. Given the urgency of the homelessness problem, a lot more needs to be done, she said. "We need to do all the things and think of more things and then do those things." Canada needs millions of new homes Lack of housing is a Canada-wide issue and by some estimates, the country needs millions of new homes for its growing population. During the federal election campaign, Prime Minister Mark Carney promised a housing plan that would yield 500,000 new homes annually and provide $25 billion in loans for companies that make factory-built homes. In his first news conference after the April 28 vote, Carney said he aims to create an "entirely new Canadian housing industry" around modular housing, using Canadian lumber, skilled workers and technology. During the February provincial election, Ontario Premier Doug Ford also promised $50 million to support modular housing technology. Experts say modular homes have several advantages that include a quicker construction timeline, cost effectiveness and an opportunity to build them in an environmentally friendly way. The key to unlocking that potential is to create a stable demand for modular homes so factories can invest in them and hire workers with confidence, said Carolyn Whitzman, a professor and researcher at the University of Toronto's School of Cities. She said the new government's investment in factory-built homes is a welcome move, but more needs to be done to make the plan a success. "The trick is how can Canada get to the scale," she said, noting modular construction isn't as fast or cheap as it has the potential to be, and that could change if production ramps up. "In order to build those factories and give people factory jobs, you need to have a certain level of demand. We simply don't have that yet." She said the federal government could place an order for factories to build a specific number of modular homes for supportive, student or other types of social housing every year to help stimulate the market. Modular housing not a 'magic bullet' for affordability Though modular housing accounts for only four to six per cent of construction, it is becoming more popular in Canada, a report co-authored by Whitzman said. Whitzman said Sweden is an example of a country that successfully turned to modular homes to address a housing crisis, with nearly 45 per cent of its homes built in factories. In Canada, where industry labour shortages and long winters can delay construction timelines, prefabricated homes may alleviate some of those uncertainties, Whitzman said. But despite its many advantages, modular housing isn't a "magic bullet" for affordability. Significant government financial assistance and involvement is required, she said. For the Ossington Avenue modular building, the federal government provided around $4.8 million in funding and the City of Toronto contributed approximately $1.7 million in the form of incentives, charge waivers and tax relief. St. Clare's equity was estimated to be around $900,000. Adams, the executive director of St. Clare's, said the rent for each unit in the building is around $500 a month. Modular units part of Toronto's affordable housing plan Modular units are an important part of Toronto's affordable housing plan. Doug Rollins, the city's director of housing stability services, said the goal is to build 18,000 supportive housing units by 2030, some of which will be prefabricated. The city recently completed the construction of a five-storey, 64-unit prefabricated building on Kingston Road in the east end, with rent based on each tenant's income, Rollins said. "It will remain affordable and as their income changes, so will their rent," he said. Other modular housing projects are underway elsewhere in Toronto and builders say they're seeing increased demand for prefabricated homes. Luke Moir, who managed the Ossington Avenue project, said it is a "great example" of how unused land in urban centres could be transformed. "It is a piece of the puzzle," he said of prefabricated homes as a housing shortage solution. Moir, who works as a project manager at Assembly Corp., the contractor that built the house for St. Clare's, said such construction projects are also less disruptive because most components are made of wood and assembled off-site, meaning there is "a lot less nailing and banging, and then there's no dust and grinding." Other Ontario cities also adopting modular construction In Ottawa, Theberge Group of Companies is working on its first factory-built home with eight apartments in the Westboro neighbourhood. Production began in early February. The modules were brought on site in mid-March and erected in just three days. The project is set to be fully completed by the end of June, and the first tenant is expected to move in on July 1. Jeremy Silburt, the company's director of acquisitions, planning and development, said Theberge is expected to start working on a few more for-profit modular home projects in late summer. Non-profit groups have reached out to the company about partnering to build affordable homes, he said, adding that modular homes cut the construction time by one-third. "So it allows us to build a project a little bit cheaper, yes, but also very quickly and that saves us a bunch of money and time," he said. Smaller cities in Ontario have also adopted modular construction in an effort to build small homes fast. Peterborough built a 50-unit complex in 2023, London constructed a 61-unit building in 2022 and Marathon, a town 300 kilometres east of Thunder Bay, has plans for a similar 20-unit project, according to the Ontario Real Estate Association.
CTV News
15-05-2025
- Business
- CTV News
In Canada's housing crisis, are modular homes a cheaper and faster solution?
A worker inspects the framing of a modular home at the Fading West factory in Buena Vista, Colo., on Feb. 19, 2025. (AP Photo/Thomas Peipert) TORONTO — When a church in Toronto's west end was converted into affordable housing nearly 15 years ago, the group behind the project was already thinking ahead. Andrea Adams, the executive director of the non-profit developer St. Clare's, said she was 'daydreaming' about what could be built on the yard next to the 20-unit building on Ossington Avenue. She was eventually introduced to Assembly Corp., a company that builds mass timber modular housing, around the same time that the city was looking for proposals for 'shovel ready' affordable housing projects. St. Clare's had the land, the contractor — and, more importantly, the will to get the project done. The result is an eye-catching, three-storey building that's now home to more than two dozen people who were experiencing homelessness. 'It's a very assertive project,' Adams said in her office next to the L-shaped motel-style structure. Its residents, she said, 'would have been people that were living in shelters or couch surfing or living in tents.' The project is a small step toward addressing the cost-of-living problem in a province that saw 80,000 people experience homelessness in 2024, according to an Association of Municipalities of Ontario report. Advocates and experts say while there is no single solution to the homelessness crisis that's compounded by mental health and addictions issues, prefabricated homes could play a significant role in addressing the shortage of affordable and supportive housing. 'The modular definitely helps because the faster construction is, the least expensive it is,' Adams said. The 25-unit complex on Ossington was erected in just 21 working days and overall construction took eight months. The size of each small studio is around 220 square feet, with a bathroom, a kitchen and a living room. The modern, light brown exterior with large windows and shading fins draws the attention of passersby. The structure 'uses every square inch of property available to it and yet still looks beautiful,' Adams said. Given the urgency of the homelessness problem, a lot more needs to be done, she said. 'We need to do all the things and think of more things and then do those things.' Lack of housing is a Canada-wide issue and by some estimates, the country needs millions of new homes for its growing population. During the federal election campaign, Prime Minister Mark Carney promised a housing plan that would yield 500,000 new homes annually and provide $25 billion in loans for companies that make factory-built homes. In his first news conference after the April 28 vote, Carney said he aims to create an 'entirely new Canadian housing industry' around modular housing, using Canadian lumber, skilled workers and technology. During the February provincial election, Ontario Premier Doug Ford also promised $50 million to support modular housing technology. Experts say modular homes have several advantages that include a quicker construction timeline, cost effectiveness and an opportunity to build them in an environmentally friendly way. The key to unlocking that potential is to create a stable demand for modular homes so factories can invest in them and hire workers with confidence, said Carolyn Whitzman, a professor and researcher at the University of Toronto's School of Cities. She said the new government's investment in factory-built homes is a welcome move, but more needs to be done to make the plan a success. 'The trick is how can Canada get to the scale,' she said, noting modular construction isn't as fast or cheap as it has the potential to be, and that could change if production ramps up. 'In order to build those factories and give people factory jobs, you need to have a certain level of demand. We simply don't have that yet.' She said the federal government could place an order for factories to build a specific number of modular homes for supportive, student or other types of social housing every year to help stimulate the market. Though modular housing accounts for only four to six per cent of construction, it is becoming more popular in Canada, a report co-authored by Whitzman said. Whitzman said Sweden is an example of a country that successfully turned to modular homes to address a housing crisis, with nearly 45 per cent of its homes built in factories. In Canada, where industry labour shortages and long winters can delay construction timelines, prefabricated homes may alleviate some of those uncertainties, Whitzman said. But despite its many advantages, modular housing isn't a 'magic bullet' for affordability. Significant government financial assistance and involvement is required, she said. For the Ossington Avenue modular building, the federal government provided around $4.8 million in funding and the City of Toronto contributed approximately $1.7 million in the form of incentives, charge waivers and tax relief. St. Clare's equity was estimated to be around $900,000. Adams, the executive director of St. Clare's, said the rent for each unit in the building is around $500 a month. Modular units are an important part of Toronto's affordable housing plan. Doug Rollins, the city's director of housing stability services, said the goal is to build 18,000 supportive housing units by 2030, some of which will be prefabricated. The city recently completed the construction of a five-storey, 64-unit prefabricated building on Kingston Road in the east end, with rent based on each tenant's income, Rollins said. 'It will remain affordable and as their income changes, so will their rent,' he said. Other modular housing projects are underway elsewhere in Toronto and builders say they're seeing increased demand for prefabricated homes. Luke Moir, who managed the Ossington Avenue project, said it is a 'great example' of how unused land in urban centres could be transformed. 'It is a piece of the puzzle,' he said of prefabricated homes as a housing shortage solution. Moir, who works as a project manager at Assembly Corp., the contractor that built the house for St. Clare's, said such construction projects are also less disruptive because most components are made of wood and assembled off-site, meaning there is 'a lot less nailing and banging, and then there's no dust and grinding.' In Ottawa, Theberge Group of Companies is working on its first factory-built home with eight apartments in the Westboro neighbourhood. Production began in early February. The modules were brought on site in mid-March and erected in just three days. The project is set to be fully completed by the end of June, and the first tenant is expected to move in on July 1. Jeremy Silburt, the company's director of acquisitions, planning and development, said Theberge is expected to start working on a few more for-profit modular home projects in late summer. Non-profit groups have reached out to the company about partnering to build affordable homes, he said, adding that modular homes cut the construction time by one-third. 'So it allows us to build a project a little bit cheaper, yes, but also very quickly and that saves us a bunch of money and time,' he said. Smaller cities in Ontario have also adopted modular construction in an effort to build small homes fast. Peterborough built a 50-unit complex in 2023, London constructed a 61-unit building in 2022 and Marathon, a town 300 kilometres east of Thunder Bay, has plans for a similar 20-unit project, according to the Ontario Real Estate Association. Written by Sharif Hassan
Fast Company
13-05-2025
- Business
- Fast Company
This Maui neighborhood built modular housing for fire survivors in just 100 days
Nearly two years after catastrophic wildfires destroyed more than 2,000 houses and apartment buildings in Lahaina, Hawaii, only 10 homes have been rebuilt. Hundreds of others are under construction, but the process of rebuilding is painfully slow. One temporary neighborhood is an exception: called Ka La'i Ola, it's filled with modular, factory-built houses and is now home to more than 600 people. Hundreds of additional modular homes on the site will soon be ready for occupancy. And it might be a model for other communities that are trying to recover from disasters—though it also raises questions about the cost of building temporary housing. 'The timeline was unlike anything that we've ever experienced,' says Kimo Carvalho, executive director of HomeAid Hawaiʻi, the nonprofit leading the development of the project in partnership with the state of Hawaii. The team secured land in February 2024 and broke ground at the beginning of May. One hundred days later, the first families started moving in. Vetting 130 modular housing companies Before the fires in Maui, the nonprofit was focused on building housing for the most vulnerable Hawaii residents. (HomeAid Hawaiʻi is the local chapter of a national group created by the building industry to help tackle the affordable housing crisis.) In August 2023, after the wildfires, the nonprofit started working with the state on the disaster response. Immediately after the fires, the state was inundated with calls from modular housing companies; it realized that factory-built modular housing would likely be an important tool in the recovery. So while the nonprofit scoured the area for a place to build temporary housing, the group simultaneously started vetting more than 130 companies that make modular homes. 'Everyone said, 'I can absolutely get you 400 homes within three months,'' Carvalho says. 'And as a realist, I was able to break that down and ask about the specifics that got us to a true understanding of their timelines, production schedules, transportation, what the work would be looking like on site, and basically coming up with a real budget.' They realized that a single company wouldn't be able to supply the 450 homes that they wanted for the project. So the team made a short list of finalists, visiting their factories in person to do due diligence, and ultimately choosing five providers. Finding a site to build At the same time, they were racing to find land. The 57-acre site they ultimately chose had challenges, including the fact that it was covered in volcanic rock. Preparing the land for construction meant an expensive process of using dynamite to blast through enough rock to install sewer, water, and electrical lines. The land sits on a slope, and engineering the right foundations for the locations was another challenge to solve. The site also has a complex history. The land originally belonged to Hawaiian royalty; it was ceded to the U.S. government when the monarchy was overthrown in 1893. When Hawaii became a state in 1959, the parcel was part of a larger collection of land that went to the state government, with the intent that it would be used to help native Hawaiians. Now, the state plans to use the site for emergency housing only for five years, as it makes plans to build permanent housing there for Hawaii residents. It's not yet clear what will happen to the modular homes when the five years are up. But the land was relatively close to some employment, a critical factor for fire survivors who were struggling with transportation. So the team moved forward. While the lease for the land was being finalized, the modular providers were getting ready to begin shipping units as soon as possible. An accelerated timeline Permitting happened quickly, as the government used its emergency declaration to speed up the process. 'We brought the stakeholders together in one room, so it wasn't five different agencies looking at a permit set that would otherwise take eight months,' says Carvalho. 'We got our grading permit in two weeks. I think the project has demonstrated not only what modular manufacturing can do, but also what government can do to truly just get housing built.' Construction also happened quickly. Most of the work on the modular homes happened in factories, with construction crews handling other steps like putting in foundations, steps, and decks. 'I don't think we would have been able to meet our timeline had modular not been an option,' he says. The first families moved into the homes in August 2024, a year after the fire. The homes, which range in size from studios to small three-bedroom houses, are limited to survivors who weren't eligible for help from the Federal Emergency Management Agency (FEMA), which has also built some modular housing in Lahaina. The majority of residents are renters. Others are homeowners with specific challenges. For example, one couple didn't qualify for FEMA aid because they had insurance coverage, but their insurance settlement doesn't actually cover the cost of rebuilding their home. Rent at Ka Laʻi Ola is free until August, and then they'll pay below market rate, helping them save up to cover the cost of rebuilding. A lifelife for residents For the residents who've been able to move in, the site has been a lifeline. 'You see a sigh of relief when they receive keys, and know that they don't have to jump around from hotel to hotel for the next four years,' says Cesar Martinez, the director at Ka La'i Ola. Martinez and his family also lost their own rental home in the fire. Like others, they didn't get any official warning the day of the catastrophe. Gale-force winds had taken out power and cell service. Martinez and his girlfriend and children fled when smoke filled the air and they started hearing explosions in the neighborhood. They were able to safely escape by driving up a dirt road into the hills and spending the night at a hotel where Martinez and his girlfriend had worked in the past. But when they returned a couple of days later, everything was gone. 'We drove to the property where we lived and confirmed with our own eyes that nothing was there,' he says. The house they'd rented had burned down. The place where Martinez worked was gone. His children's school, which had been scheduled to start a new school year the day after the fire happened, was also gone. Like thousands of other Lahaina residents, they stayed temporarily in hotels. But the shortage of housing, and the extreme cost of the little housing that was left, meant that they considered leaving Hawaii. When they were able to move to Ka La'i Ola, they knew that they would have a place to live until 2029, and that was incredibly important for their mental health. 'There's a lot of uncertainty,' he says. 'A lot of people who didn't have much, now have even less.' Meeting their new neighbors also helped. The modular homes are arranged in pods of 14 or 16 units. 'We placed units strategically in ways where there would be intentional community connections,' says Carvalho. The community also has access to financial literacy classes, mental health counseling, a mobile food bank, and a mobile vet clinic that offers free care for pets. The site itself, with a view of the ocean, is peaceful. The name means 'The Place of Peaceful Recovery' in Hawaiian. A steep cost It's undeniable that the development happened quickly—and for that reason, aspects of the approach could be useful for other areas. Changing permitting rules was key, and so was the use of modular homes. Carvalho has been meeting with groups from California that are currently working on plans to rebuild areas that burned in January around Los Angeles. He has offered, he says, to share HomeAid's analysis of all of the modular housing companies. But the homes come at a steep cost: The project costs $185 million, or more than $400,000 per home. (The nonprofit says that's still $52 million less than the state would have spent with typical construction; the project saved $14 million because of donated materials and labor. The Hawai'i Community Foundation also contributed $40 million from funds collected from global donors.) Most of the cost went to building underlying infrastructure, from sewer and water connections to grading the land, since it was an undeveloped area; the base cost of each home was only around $122,000. The same infrastructure can later be used to support permanent housing for Hawaii residents, and the modular housing itself can likely be used much longer than the current five-year plan. Still, critics argue that costs were higher than necessary because the developer didn't get bids from multiple contractors in order to speed up construction. Critics are also concerned that HomeAid hasn't been transparent about specific costs; the nonprofit acknowledges that it's behind in providing receipts. And while the project has undeniably helped its residents, 12,000 people were displaced by the fires; one development can't help everyone. The cost is also a reminder that as climate change makes disasters more common, communities also need to invest more in prevention—repeatedly rebuilding is financially unsustainable. In L.A., for example, the fires this year were 35% more likely because of climate change. The same extreme conditions will happen again, and neighborhoods need to be better designed with that in mind. At a national level, the Trump administration recently shut down a program that helped communities become more resilient in order to limit damage in disasters. But some cities are still trying to do more. In Berkeley, California, for example, homeowners in neighborhoods that are at the highest risk from fire will now be required to clear 'defensible space' around their homes so fires can't spread as easily.
