Latest news with #modularhousing
Forbes
3 hours ago
- Business
- Forbes
Probing Alternative Solutions To Affordable Housing Crisis
Modular affordable housing project at 833 Bryant St. seen being built on Tuesday, June 30, 2020, in ... More San Francisco, Calif. (Photo By Liz Hafalia/The San Francisco Chronicle via Getty Images) The crisis impacting housing affordability stands among the most pervasive and complicated challenges facing the nation. In virtually every part of the country, housing costs have outstripped incomes. That's left huge swaths of the population either rent burdened or entirely removed from homeownership. The crisis is most acute in the nation's largest cities, but smaller cities, towns and rural areas are not immune. 'This isn't just a question of economics,' says Jonathan Curtis, founder and CEO of Chicago, Ill.-based real estate development firm Cedar Street Partners. 'When people can't afford stable housing, everything else becomes more difficult: Finding and keeping a job, accessing healthcare, caring for children and building generational wealth. Housing underpins opportunity, and right now, the foundation is cracking.' Without coordinated action, more thoughtful policy and fresh ways of thinking about planning, financing and developing housing options, the yawning gulf between Americans with access to housing affordability and those without will widen, he says. The frameworks created years ago for developing housing were designed to preserve neighborhood character or keep growth in check and no longer work, Curtis says. They didn't account for the economic realities of climate change and population pressure. To really address the challenges, Curtis believes state governments will need to take the lead in enacting laws with teeth to tackle urban policies that throw up obstacles in the form of 'inconsistent standards, exclusionary zoning, inflated impact fees and a planning process that drags through layer after layer of political review,' he says. What he calls 'clear fixes' exist: Mandating certitude of fees and timetables, forcing cities to shoulder the burden of proof when turning thumbs down on compliant projects and dictating cities losing in court cases post large appeal bonds. Modular construction can also play a role, trimming the time required to deliver affordable housing, making the process more predictable and reining in supply chain volatility. Curtis knows the challenges and possible solutions first hand. 'We spent years trying to advance a modest mixed-use housing project in La Canada Flintridge, one that meets local needs, respects the community and complies with state law,' he says. 'Even so, we faced resistance rooted in outdated land-use patterns and reluctance to accept change. Ultimately, we, the California Attorney General and two housing organizations took legal action to move the project forward. The ruling was watched closely through California. It underscored the need to modernize how cities think about growth, especially in high-opportunity areas where exclusionary practices still hold sway.' The solutions to the affordability challenge must evolve, because the crisis itself continues to evolve. So says Matt Forssman, managing partner with GMF Group, a Palm Beach, Fla. firm with a strategic emphasis on manufactured housing communities. 'Strategies like public housing and rent control have played important roles, but come with limitations,' he says. 'Rent control may provide short-term relief, but it can also discourage new development and worsen supply shortages. Public housing developments are expensive to build and maintain and require significant government funding.' Manufactured housing communities (MHCs), which Forssman calls 'naturally occurring affordable housing' has offered housing for millions for much of the last century. MHCs represent the most significant source of non-subsidized affordable housing in the U.S. 'Unlike subsidized housing, MHCs are privately financed and operated . . . a market-driven solution that doesn't depend on public programs,' he says. Without innovative solutions, the affordability gap Curtis referred to will claim some of many municipalities' most important contributors. 'We're watching the backbone of our communities get pushed out,' he says. 'People who hold our cities together – teachers, nurses, sanitation workers, first responders – can no longer afford to live near their work . . . We continue to lose trust in the systems that are supposed to protect us. And the longer we wait to act, the harder it will be to repair what's already breaking.'
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
