Modular homebuilding growth is on the rise across the nation. Moreover, experts predict the growth within the modular market will continue through the next decade. So, what is contributing to this growing sector of the housing industry? Simply put, it is a more economical method during a time when construction materials are skyrocketing.
In an article shared by Crunchbase News, industry experts say the main reasons for this new way of building are clear. The housing shortage in the United States is getting worse. In addition to the worsening shortage, the COVID-19 pandemic is also to blame. Since the pandemic began, many supply chains have been disrupted. Those disruptions impacted the construction industry as a whole and halted many projects.
Mortgage lenders like Freddie Mac say demand for homes has risen by 52 percent from 2018 to 2020. They predict the demand will grow even more in 2021. Lenders say demand for homes is also rising due to low-interest rates encouraging purchases. In addition, many available homes are over 70 years old and need rebuilding. Another issue adding to the increased popularity of modular homebuilding is a lack of skilled workers.
The cost of construction materials like lumber and gypsum are the latest hurdle the industry faces. Those prices did take a dip this month, but are still up more than 300 percent year to year. Last month, the National Association of Homebuilders also saw a record number of builders reporting shortages in building materials. These issues, coupled with America’s housing shortage, has many in the construction industry looking for a smarter way to build.
Modular Homebuilding: A smarter way?
Many associate the word modular with mobile homes, but that is not the case. Modular is a building process, not a home product. Specifically, modular is a form of prefabricated construction. Modular means the homes are built in sections in a facility and put together on-site. Modular Homebuilding increases productivity and sustainability.
Navigate Affordable Housing Partners believes the economical, sustainable, modular building process is a solution to America’s affordable housing crisis. Right now, we are working to bring modular homebuilding into the North Titusville neighborhood of Birmingham, Alabama. We will build eight state-of-the-art and quality homes over the next six months You can learn more about our efforts with the Live on 1st project here and the new homes coming to Goldwire Heights Subdivision here.