Unlocking the Future of Housing: Key Takeaways from the "Designing Well for Modular Construction" Panel

Last month at the 2024 PCBC, I was joined on stage by industry experts Charly Ligety, and Anthony Gude (Dennis Steigerwalt, President at Housing Innovation Alliance, was unfortunately unable to attend last minute). Charly Ligety, Director of Research and Development at Housing on Merit, shared his extensive experience in affordable housing and modular research. Anthony Gude, a real estate developer from Los Angeles, provided practical insights from his work on steel mid-rise, multi-family infill projects. Together, we explored the benefits, challenges, and future potential of modular construction.

Top 4 Takeaways:

Productivity and Efficiency Advantages:

Anthony emphasized that modular construction offers significant productivity improvements, including reduced labor hours, fewer skilled labor requirements, and elimination of weather delays. These benefits can lead to a 20-40% reduction in overall labor hours and a 50% reduction in skilled craft labor hours, making it a potentially efficient solution to the housing crisis.

Consumer Preferences and Design Flexibility:

We discussed the importance of understanding the needs and preferences of homeowners for the success of modular construction. Key motivators for consumers include wellness, sustainability, and financial efficiency. Modular homes must be designed to promote these aspects while offering flexibility and quality. Addressing consumer concerns and educating them about the benefits of modular construction can help increase acceptance and demand.

Innovative Approaches and Technologies:

Controlled environment of modular factories allows for greater innovation. The panel discussed advanced HVAC systems and other technologies that enhance the efficiency and sustainability of modular homes.

Challenges and Barriers:

Charly highlighted that despite its benefits, modular construction faces considerable challenges, including complex regulatory and permitting processes, financial barriers, and market resistance. Builders often perceive the benefits of modular construction as not outweighing the costs and risks associated with adopting a new method, and there are logistical issues related to coordinating schedules and transportation of modules. Financial and economic barriers, such as securing financing and high initial investments continue to be a challenge. The panel underscored the importance of developing integrated financial solutions and government support to scale modular construction.