The Multifamily Sector Is Going Modular as Rental Demand Surges
Multifamily projects are the fastest growing segment in the modular construction industry, taking up 23% of the commercial modular output last year, according to ConstructionDive. As demand surges in the rental market, developers are turning to offsite construction to speed up their housing production, but increased time savings doesn’t always amount to cost savings as well.
Ernesto Lopes, CEO and president of Miami-based developer Resia, is relying on prefab to deliver moderately priced new housing without government subsidies in South Florida, Atlanta and Texas, and while his building process saves an average two and a half months of construction time, it also costs about 3% to 5% more than traditional construction.
Resia plans to build a 200,000-square-foot pod manufacturing facility in Panama City Beach, Florida, to produce about 20,000 pods a year, said Lopes. He expects the facility to start operations in 2024, and aims to deliver 8,000 new apartments in the Sun Belt annually by 2025.