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Against All Odds, Modular Construction Is Forging a Path Toward Affordability and Innovation

Modular Homes

Against All Odds, Modular Construction Is Forging a Path Toward Affordability and Innovation

Offsite construction projects have been hindered and delayed by supply chain bottlenecks and rising costs throughout the pandemic, but modular builders are finding new ways to adapt

June 8, 2022
Crane lifting part of modular home for assembly
Image: Stock.adobe.com

Modular construction allows builders to quickly and efficiently produce affordable housing units, but building companies like Impresa Modular say that the offsite process has been slow to catch on. Completed homes rely on trucks for transportation and delivery and cranes for assembly, but supply chain issues and heightened costs for services have created roadblocks for modular builders.

In order to bypass delays and inflated costs, companies like Terra Verde plan to deliver units from a centralized location in Arkansas. The company hopes to produce 500 to 750 houses per year and all homes will be up to 95% complete upon arrival to reduce construction time, Forbes reports.

J. Don Overton is principal at Arkansas-based real estate developer Terra Verde and is focused on providing workforce housing solutions in underserved Arkansas communities. 

“Really, the whole reason we are working towards full offsite construction is the speed,” he said. “The sooner it’s completed, the sooner it can be sold or rented. We should make up the 4 to 5% in transportation costs with the economies of scale of using the factory model, because of the quicker turn, less waste and higher quality. There is a 25 to 50% increase in volume of units completed to certificate of occupancy from doing it offsite as opposed to onsite for the same product. Plus, there are no weather conditions to deal with offsite, crews can work when it is freezing cold, raining, or any other weather, and you can have several shifts.”

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